Give an inch?

[Greg Mitchell]

Have tenants, man and woman, who have had a falling out over finances.   Apparently she doesn't help him pay any bills, he has to pay everything and she's worthless, etc.  

In our lease, there is a $25/day late penalty.  He's asking for no penalty 'this time' because he's short until this coming Monday, supposedly.  He's also saying he's trying to get rid of her and have an old friend move in with him who will share bills.  

Not sure what to do...any advice for a newbie? 

TIA, 

GREG

[Jim Shepard]

Greg, I will normally let a tenant be late once but I send them a letter stating the terms of the lease. After that I enforce the late fees. I am concermned on your late fee amount of $25 per day. If you had to take someone to court the judge would probably throw it out. The amount has to be "fair and not excessive". My rents are $700 to $1000 per month and I charge $5 per day starting with first to a max of $50 per month. Don't let your tenant move someone in without going thru credit and background checks. If they don't mert your qualifications, don't let them move in. Otherwise you could get another problem with a felon, someone that has been evicted in past, no income,etc.