Late Payments

[Andrew Cross]

We just bought our first rental earlier this year and I'm have some issues with the tenant.  Not too serious, she and her kids keep the house clean and haven't caused any damage, but her payments are almost always late.  

In the lease, and during orientation I explained that rent was due on or before the 1st, the second, it's late.  We have a 5% of total rent tacked on for day 2 and $5 a day thereafter.  She has a local assistance program she's a part of that pays about 90% of the rent and she's responsible for the other 10% (around $80).  

She came to me last month telling me she can't make the payments on the 1st and would like her due date moved to the 3rd since that's the day her disability check card is refilled.  I've talked with her in previous months about this and explained if she'd hold back the $80 for rent or pay it a head of time it would take care of her issue, I know this probably shouldn't factor in, but the cable tv bill is $75 a month, which I'm pretty certain is currently being taken care of.   It certainly seems like just a lack of planning and budgeting to me, but I might be way off. 

I'm pretty sure I know how to handle it, but would like to see what other people here have done or would do in a similar situation.  Thanks!

[Matt Motil]

Do you get the rent each month on the 3rd or is it later than that? If it is consistently on the 3rd or 4th and it jives with her story about receiving payment, why not change the due date and avoid all the hassles. 

Renters typically aren't going to be your most organized and well-planned out lot. If they were, most of them wouldn't be renters. I have rent due on the 1st and late on the 5th. If rent isn't received on the 5th, there is a 5% fee added for late payments. On the 8th they are given 3-days notice. I go through this with my tenants and they understand it when they sign up. One time, on one of my high-end rentals a tenant asked to move the due date to make it more inline with their work pay schedules. This is a non-issue. It makes sense for them, and I don't have to worry about late payments. 

Remember that over 75% of people in this country live paycheck to paycheck. Asking someone to change the habit isn't going to happen very easily. 

Now, if the 3rd comes and goes and you're still waiting for your money then you have a totally different issue on your hands.