Tenant is ALWAYS late. When is enough?

Question

I bought this property about a year ago. My first tenant has been in for a year and things have been bumpy since the beginning.

They have been late just about every month. When they are late, I follow strict protocol, I issue a late notice immediately, then after 5 days a 10 day pay or quit. Then I file a landlord complaint for possession.

9/10 they pay late, but they pay the rent along with the late fee by the middle/end of the month and then the cycle continues.

Once they got backed up, we went to court, I was awarded possession and was just about to file the forceable eviction and they paid everything and caught up… only to be about 3 weeks late again for the next month.

It’s not goin to stop. I know they won’t pay on time. But I also know they will typically always pay. In fact even with all the hassle, this has been my most profitable property because the cash flow is the highest and with all the late fees added in I actually had a decent year.

I know I’m breaking the fundamental rules here of property management, but should I stop putting up with this? Is it worth taking the time and money to get them out,

spending the money to prep the house for a new tenant screening a new tenant

Wesley W. · Answer

Time is money. I would issue a notice to terminate and end the madness. It's only a matter of time before a minor financial emergency pops up for them and you'll have the time, energy and expense of an eviction on your hands. At least with the termination it will be on your terms and timeline. This also why I only offer MTM leases.

Good luck!

Luka Milicevic · Answer

In my experience, one thing to consider is the "type" of property

I have a property where I have a tenant that is usually late. 7months/year late. They end up paying but it's a hassle.

The type of property is always going to attract this type of tenant. I know because it's always been the same, so I can replace them but I will more than likely have the same problem.

Brandon Turner on one of the early episodes of the podcasts talked about this where he had a house that was purple that would always attract "weird" tenants. Just like renting out a basement. It will attract a certain type of tenant. Just something to think of.

Jaron Walling · Answer

@Vincent Plant I'm surprised you went through the court and made it this far. Wish you could play nice and give them a 60 day notice, but you'll end up eating two months of rent instead of one.

"Then I will have to file another complaint and evict them correct?" - Yes, I believe you have to go through the process just like before. New dates on letters delivered to the door, certified mail, etc.

It's not your fault they can't follow a budget. You didn't mention any future rent increases. It's safe to assume this problem will only get worse. Best of luck.

George Red · Answer

I’m actually facing something similar and justifying it because she pays monthly (albeit late) and I’m figuring that’s at least money coming in as opposed to the outflow of a unit turn and vacancy.

In trying to be “understanding” I’ve been enabling her and not enforcing late fees to boot… sent a “reset” for May and enforcing lease but it is a c class area so as an earlier poster said… May not be isolated to class of tenant but of multiple units this is the only tenant where this is an issue. I just don’t want to eat the unit turn costs.

Bob Stevens · Answer

You're stressing for no reason they pay right? So why not tell them this must end, or I will evict you.

RE is nothing but math. So do it, 3, 4 5 months no rent, evict, reno find a new tenant. PLUS, rental turn, 4, 5 6 7k? So put up with the late, (put an end to it, tell them you will evict and sue for the entire balance of the lease, and will win ) typically this works.

Good luck

Sean Walsh · Answer

I once had a tenant who remitted his rent a week late pretty consistently. I always charged the late fee and he always paid. The extra money - I thought at the time - was worth the hassle and stress. About two thirds of the way through the lease I accompanied a repairman into the unit. I quickly observed the tenant had a dog, a roommate, and an Olympic weight set - none of which was allowed per the lease.

But I said nothing. I comforted myself that the late fees I accrued were a fair trade off and I looked the other way. Near the end of the lease he sent me a text saying he had moved out and left the keys in the unit. Suffice to say, the cost in time and money to get the unit tenant-ready far exceeded his late fees and the down payment.

Lesson: You get more of what you tolerate. Some times way more. This tenant of yours is not finished pushing the limits of your tolerance. I’d say do what you can to get them out now. Period.

Andrew Rees · Answer

I forgot to add that constantly following up with the tenant to make sure they pay etc. is a waste of your time. Add a value to your time say $50/hr. Then see how much time you spend every month hassling them for payment say 2 or 4 hours every month.

If you logged all of that time 15mins or 1/2 hour every time you call etc. that adds up.

You might think oh it doesn't cost me anything just my time, then your time isn't valuable and you have undervalued yourself.

Don't let people do that to you! Your time is valuable.

Alyssa Wright · Answer

I would just non-renew them and give them proper notice of the non-renewal. To me, it's never worth the hassle of having to worry if they're going to pay their rent on time or not. I don't think you'd have much luck going the eviction route as they seem to be bordering on the professional tenant side of things in terms of avoiding possessions.

Alternatively, you could also reach out to them and try to figure things out that would work better for them, like possibly changing the time that their rent is due. Do you know if their payment issues are from them choosing to pay or if their pay-periods are more sporadic and just don't line up well with the rent being due?

Bruce Woodruff · Answer

Your choice but the hassle and stress would not be worth it. You must have to think about this property for hours every week, that's not how it should be....

Don't be short-term greedy and hang in there for the immediate money. Sure you will lose a month (or 2) of rent now, but in the end you will have a nice newly remodeled place that will attract a new tenant (that you will screen the heck out of). And never look back...

Chris Seveney · Answer

@Vincent Plant

I did not see you mention what type of lease are they on? Are they month to month or on any yearly lease

If it’s month to month follow the lease and let them know you are not renewing

Tenant is ALWAYS late. When is enough?

Most Popular Reply