Long Distance Rental: Late-Paying Tenant Question

[John P.]

I own a house in another state with tentants and property management in place.  I bought it about a year ago.  So far, it's been more of a learning experience/gut check than an  "effortless cash flow source."

Last month, the PM had trouble contacting the tenants.  It turns out a close family member died, and they were out of town for the funeral/arrangements.  They said they'd be a few days late on their July payment.  Apparently funeral expenses took a toll on them.  I was OK with the late payment, since they've paid timely so far (since Dec. 2013).  Normally, we'd start charging late fees on Aug. 3.  I was expecting the payment by Aug. 8.

Well, it's now 8/18 and I still haven't received the payment.  The PM again had trouble communicating with the tenants, but finally talked to them today.  The lady said her husband's pay was shorted last month, but she's going to try borrowing the money from her sister.  If she can't do that, she says she'll still pay by this Friday (8/22).

Any advice would be appreciated.  My short-term options are (1) Start charging the late fee today) (2) Start the late fee if they don't pay by Friday.  Longer-term, I'm wondering about next month's rent (due in about two weeks) and possibly eviction.  The PM says there's pretty strong demand for renters in the area.  However, I've probably missed the best season to put someone new in the house.  The current renters lease is up this November.