Paying rent on 15th each month

[Alex Moazeni]

Hi.

Just closed another 4plex and obviously it came with all inheritate tenants. One of them which has been there for 10 years is saying she always pays her rent on 15th each month.

It is not on her lease, she said she will send the updated lease to me and she will pay late charges and fees if I don't receive it by 18th. 3 days grace period.

She has a lease agreement started April 2024 and it will end on 2026. Unfortunately.

Any advise?

Appreciate it in advance.

[Nathan Gesner]

Quote from @Alex Moazeni:

Ask the seller. The tenant could be playing with you for her convenience.

Personally, I have too many rentals to deal with a variety of due dates. If the lease says rent is due on the 1st, I would give her the option of following the lease or moving out.

In the future, every offer to purchase a property with existing tenants should include a request for an estoppel. What is an estoppel? I'm glad you asked!

An estoppel certificate (also called an estoppel form or agreement) is a form filled out by the tenant, then confirmed by the Landlord, and then accepted by the Buyer. It's supposed to ensure there are no surprises after closing. For example, I often see Buyers purchase property thinking there is a $1,000 deposit but then the tenant claims it was $2,000 because they paid the last month's rent. How will you know? An estoppel certificate fixes this problem.

Some things it may include:
1. Tenant name, contact information, and address
2. Occupancy date
3. Is there a written lease? If so, review it to ensure it matches the estoppel certificate
4. Are there any modifications to the written lease?
5. Are there any verbal agreements or arrangements between the current Landlord and Tenant?
6. Current lease term (expiration date, month-to-month)
7. Current rent rate
8. Rent due date
9. Security deposit amount
You can find plenty of examples by searching for "tenant estoppel certificate doc" or exchanging "doc" with "pdf" for more options.

Here is an example and explanation: Sample Estoppel

Some have a lot of legal jargon but this document does not need to be so detailed. This is an essential tool for anyone buying a tenant-occupied property.