Tenant ALWAYS late

[Lisa Ryan]

My tenants are always late. As in they literally have never paid rent on time. They moved in mid-June and paid June (prorated) and July rent, last month's rent, 1 month security. Rent is due on the 1st and late on the 5th. 

On August 4th they sent me an email saying they would put the check in the mail the next day. I explained that I had to physically have the rent in my hand by the EOD on the 4th or it's late, but I'd let it slide this one time. The check came a few days later. The next month (September) I received payment on the 4th (just within the grace period...).  October was a real issue. The story I got was that there was a problem with work's direct deposit yada yada so I ended up not getting payment until the 19th. I explained that this absolutely could never happen again, I feel like I've been very patient and understanding but from now on rent has to be received on time. (They did include the late fee that time). Also with the October situation they told me numerous times that a check would be mailed the next day (when it clearly wasn't) so now I have about zero faith when they tell me a check has been or will be mailed.

Now this month has rolled around and it's now the 5th, no payment. I reached out and they said a check would be mailed on Friday.

I talked to several previous landlords and all of them said that these people were good tenants. I do think I'll get paid, but It seems like every month will be a story. I just don't have the time for it.

I have sent several email explaining very matter-of-factly that rent is due on the 1st and the late fee will be enforced if not physically in my hands by the end of the day on the 4th. I've asked if there are any questions or confusion. I don't know what else I can do.

I'm personally in a situation where if something happened with my work direct deposit I'd still be able to make my mortgage payment no questions asked. It really scares me that missing 1 payment would make someone unable to pay their rent. These people have good income, I just think they live beyond their means (fancy cars, fancy toys). I want to sit them down and give them a lecture about money management (the CPA part of me) but I know that's not my place. Plus I should charge my billing rate for that :)   

Do I threaten a notice to quit? Do I ride out the 7 more months of getting paid 5-15 days late and then not renew?

After they were so late in October I told them that it would never happen again. I didn't specify the consequences, but here we are again with no payment.

[Marcia Maynard]

Do you have the terms spelled out in a contract that they signed? I bet you do. You need enforce the terms of that agreement. Be firm and fair, but cordial. If you have an established late fee, charge it. I uploaded our "Rent Past Due" letter in the BP File Place. It may help in your situation. Go to Resources/File Place/Other Documents and look for documents with my name.

We will serve a "Pay Rent or Quit" notice on the day after our grace period expires. Even if we are working with a tenant who has a special circumstance and pays rent late with the associated late fee, we don't let rent go unpaid past the 15th of the month. 

If your tenants are having difficulty with abiding by the terms of the rental agreement, they may be in violation of others as well. Be sure to do your periodic inspections of the property and keep an eye out for other lease violations. When rent does not come in on time, check to see if the utilities are paid up to date. They tend to go hand in hand. You don't want to end up with rent in arrears and liens on your properties from unpaid utilities, so act now.