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Updated over 8 years ago, 04/13/2016
The "lost my wallet and somone overdrafted my acct" excuse
Hey BP folks, looking for a situation opinion here. First time this has happened to me.
I solely utilize buildium's e-pay service for rent collection and for the fisrt time had an "echeck" reversed for NSF. The tenant just moved in on 3/1/16 (@ $600/mo) and then wanted to pay the rent for april a couple weeks early via cash while I was there working on the lower unit. My reply was that he pay online through the tenant website as it is a condition of our lease agreement, its convenient, safe, yada yada. So on 3/31/16 he made the online payment, great. Then on 4/5/16 the payment was reversed due to NSF.
On 4/6/16, i applied the $50 late fee(normally is applied on the 2nd, no grace period) and applied the $35 NSF fee. Then I let him know the situation he asked if I was sure beacause he had a receipt for payment(buildiums auto email for making the payment) I replied with yes, check your bank and you'll see that I was never pulled.(confirmed this with buildium/forte). No response from tenant
On 4/8/16 he texted me that he needs a few extra days because he lost his wallet on the bus and someone used his card to overdraft his account and they have to do any investigation. My response was your 7 day notice was issued on the 6th so you now have 5 days.
Today I let him know that I would be going to the court house on the 14th to file for eviction if the balance was not paid. I also let him know that I removed the NSF fee as it never hit my bank and therefore my bank is not charging me for it. His reply, "so I just have to pay the 600 rent"
I haven't replied yet. So do I stick to my guns and leave the late fee on his account? Remove the late fee in hopes that this is a one time fluke? Remove the late fee if he proves to me via bank statements, investigation reference #, etc that his claim of losing his wallet is actually true.
Thanks guys, sorry for the long post.
Originally posted by @Dawn Anastasi:
It's always because someone died, or someone else didn't do something, or the government or the employer's fault. It's NEVER the tenant's fault. You need to learn that as a landlord -- NEVER the tenant's fault. It's ALWAYS someone else's fault. (end sarcasm)
And the landlord is ALWAYS the bad guy for holding up their end of the agreement!
@Account Closed
Hi Chris
I think all of us landlords should compile a list of excuses and post in the office. Just point to the tenant when he gives you one of those excuses.
This is a creative one. I would do what your gut tells you, and if you do give him a pass, next time he comes up with a lame excuse, you know what to do. If he proves it, then I would give him the benefit of the doubt.
Gino
Update:
Told the tenant yesterday that he needs to pay his total balance including the late fee and the transaction fee for the NSF payment. He said ok and he'll take care of it tonight as he expects his funds to be returned tonight. Tonight? After business hours?Another red flag.
Today he did make the full payment at 5pm. I told him after this transaction clears he can provide me with proof and I will remove the late fee and give him the credit towards next month. No response so far! Well see.
Thanks you everyone for your input! I truly appreciate having a community of like minded "been there, done that" professionals to bounce ideas and issues off of.
Originally posted by @Gino Barbaro:
@Account Closed
Hi Chris
I think all of us landlords should compile a list of excuses and post in the office. Just point to the tenant when he gives you one of those excuses.
I'm laughing after reading this one, the look on their faces would be priceless! Great idea but I don't have an office they could come to and all my tenants are required to pay online anyway. Maybe I'll send them a picture of my excuse list or email it with their excuse highlighted!
@Account Closed Thanks! She couldn't find a better deal on a rental, was one reason. I kept her rent low enough that she'd want to stay and pay extra every month toward her debt. I did have to give her a 3 day notice to pay or quit once & she freaked out and went crying to the owner. He was deathly afraid of lawsuits or even eviction court, and wanted me to back down. I agreed with him not to file it, but I didn't want her to know that. She paid up.
And then, miraculously, she got an inheritance and actually paid off the balance, which was around $5000 by then, I think. I always thought she'd move and file bankruptcy on it, but she didn't. I got to give her that. She just needed a kick in the pants. She'd moved in as a student, and after 10 years, was still behaving like one. She actually grew up. I was proud of her. But, still glad to see her go LOL.
And I told her I'd tell any landlords who called that she had paid as agreed, which was true. And that her account was in good standing, which was true by then.
But, whew! Screening is so important! And never wavering on your rules. I did give all tenants "one free pass," where they could pay late, as long as it was within reason. After that, there would be late fees. Once you get good tenants, it's usually not a regular problem.
I'm going to compile my excuse list and bring it to all my lease signings from now on. Maybe I'll even categorize the list as to the type of excuse Categories: Heard these a million times, Creative yet i still didn't buy it, Come on is that really the best you got?, Consider re-evaluating your priorities)
@Account Closed
If you have a website, put it there as a joke!