How to Handle Consistent, Yet Profitable, Late Payments?

[Scott J.]

I have a tenant that takes immaculate care of my property. They are a good family that fell on hard times in the recession. They have great long-term rental history as well.

Unfortunately, they have been late on their rent the last two months. We had a bounced check once about a year ago as well. Those are the only issues we've had. The ALWAYS pays though. And they always include the late fee or bounced check fee without being asked, which is nice.

The last two months they've paid their rent five days late (on the 10th) and included the late fee of $30/day. While this is profitable for me, clearly they are tight on money and I'm afraid by starting this cycle of paying us on the 10th that they won't be able to pay us on time at the beginning of the following month.

What do you recommend? Here are a few options I can think of:

1. Let them pay late and keep collecting the extra $30/day. If they don't pay by the 15th they get an eviction notice.

2. Tell them that rent is due on the 5th and late payments are not okay.

3. It sounds like they get paid on the 10th. Can I work out a way where they always pay us on the 10th rather than the 5th? This could make our mortgage payments a burden though if they are late on these payments.