Rent is ACTUALLY lost in the mail (with a tracking number)

Investor · Carnegie, PA · Member since 2014 · 259 posts · 144 votes

We have a tenant that pays by money order every month, but when she mailed this month's rent it never arrived. She sends it with a tracking number since it's a money order, and we can see that it actually IS lost in the mail this time (went to the wrong post office somehow).

1. Would you still charge a late fee? She mailed it on the 1st, should have arrived on the 2nd. It is still outstanding and is now the 9th. However, it looks like it truly is the fault of the post office.

2. Since it's a money order not a check, she would have to get an additional $600 to settle December's rent, which she does not have available. Would you still post notice even if this is an otherwise good tenant that always pays on time?

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Deanna McCormick

Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes

As far as I know proof of mail is the tracking number which is what you said was mailed on the 1st. So the fact you have to wait for delivery isn't her fault. Her rent in my minds eye isn't late it's lost.

She is smart to have a tracking number on it. Now she has proof to take to money order place to put a stop payment on that money order and have a new money order reissued. Which they will do.

It will take time but she should be able to get it taken care of. OF course she doesnt' have the 600 it's in limbo with money order company but it's there she just has to file a stop payment and reissue. which will probably cost her a few bucks to do.

My experience with this is I had to track quite a few missing money orders and with proof of purchase if lost they will be cancelled, and replaced.

If she had sent a check and tracked the letter she'd have to do the same thing stop payment on the lost check, and reissue a check,, just with a checking account it's somewhat faster.

So you wait a few days.. OMG is this that hard to figure out..

IF the late fee is that important to you I guess your in the wrong business.

She in good faith of the stupid postal service sent you her money.

Charge the post office the late fee.

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Account Closed
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
9y
@Matt Faix I would not post the notice. I would probably charge the late fee.
2 Reply
Jassem A.
Investor · PA · Member since 2013 · 1k+ posts · 602 votes
9y
What's the additional $600? I wouldn't charge anything extra if it's not her fault.
2 Reply
Jessica Zolotorofe
Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
9y
Second @Jassem A.'s question. I don't understand that part. As for the late fee or default notice, if she legitimately sent it and you have proof, cut her some slack. There's nothing she could have done differently. I wouldn't charge her anything. Especially if she's usually on time.
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Matt Faix
OP
Investor · Carnegie, PA · Member since 2014 · 259 posts · 144 votes
9y
Her rent balance for December is still $600.
Since it's a money order, the original $600 that she paid up front, is now lost in the mail. So she would have to come up with the balance some other way, unless she can get that MO refunded somehow.
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Ron Dayley
Clarksville, TN · Member since 2016 · 238 posts · 96 votes
9y
I would charge late fee and let her make it up over the next month or two.
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Samantha Klein
Investor · Monroe, WI · Member since 2015 · 691 posts · 610 votes
9y
@Matt Faix First of all, I would not charge a late fee, if this has been common practice for her to send a money order by mail and she's been consistent and is a good tenant, then cut her some slack. This isn't her fault, it is the post offices. It's likely that money order will eventually get directed to the correct post office but there's no telling how long that will take. If she purchased the money order at the post office, I would have her take her receipt with and ask them if she can cancel it and get a refund. This is a tough situation because you don't want to ruin a good relationship over something that is neither you nor the tenant's fault. Maybe you should evaluate how you collect rent if you want to avoid this in the future.
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
9y
Question: why is she mailing on the first? Is your lease set up so that payment is to arrive by the first, or postmarked by the first?
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Deanna McCormick
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
As far as I know proof of mail is the tracking number which is what you said was mailed on the 1st. So the fact you have to wait for delivery isn't her fault. Her rent in my minds eye isn't late it's lost.
She is smart to have a tracking number on it. Now she has proof to take to money order place to put a stop payment on that money order and have a new money order reissued. Which they will do.
It will take time but she should be able to get it taken care of. OF course she doesnt' have the 600 it's in limbo with money order company but it's there she just has to file a stop payment and reissue. which will probably cost her a few bucks to do.
My experience with this is I had to track quite a few missing money orders and with proof of purchase if lost they will be cancelled, and replaced.
If she had sent a check and tracked the letter she'd have to do the same thing stop payment on the lost check, and reissue a check,, just with a checking account it's somewhat faster.
So you wait a few days.. OMG is this that hard to figure out..
IF the late fee is that important to you I guess your in the wrong business.
She in good faith of the stupid postal service sent you her money.
Charge the post office the late fee.
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Account Closed
Investor · Santa Rosa Beach, FL · Member since 2016 · 232 posts · 153 votes
9y
I wouldn't charge a late fee. She mailed it, as she always does, the delay is out of her control.
Any word from the PO on when it will arrive? It can take forever to cnacel a MO and reissue.
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David Yu
Investor · Greer, SC · Member since 2016 · 9 posts · 6 votes
9y
I would agree with everyone who says not to charge the late fee.
She didn't do anything wrong and this could cause an unnecessary rift in your relationship with an otherwise good tenant.
Hopefully, the post office corrects the problem soon and you get your rent!
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Deanna McCormick
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
I am currently waiting on a package value of 5k lost at post office with tracking number, insured, and it's been lost for 6 days, it's big, it's not a letter, and they won't look for it.. I was told they are 30% understaffed and will not hand sort to look for lost items, most likely will be returned to sender if found but it's in limbo...
Yes it will take time to get money order replaced but she can start that NOW. She doesn't have to wait.
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Matt Faix
OP
Investor · Carnegie, PA · Member since 2014 · 259 posts · 144 votes
9y
Thanks for all the help. I just talked to the post office. They indicated that it is on the truck and should be delivered by tomorrow. We'll skip the late fee and hopefully it will show up tomorrow.
@JD Martin She sent on the 1st because she waited too late to send. Our lease states - Due on the 1st, late fee after the 5th
@Deanna McCormick it's not that the late fee is that important. I'm just trying to factor in all things. It's an odd circumstance, and wanted to bounce it off of the group. Thanks for your feedback.
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Cam Coplin
Huntington Beach, CA · Member since 2013 · 39 posts · 19 votes
9y
Rents now late. If she's been an on time great tenant, cut her some slack. Give her maybe 1 week to come up with the rent + late fee. Then if she can document the MO was lost, refund the late fee later. A tracking number is just that. It does not show its lost or misaddressed or anyone of a number of things as to why you didn't get it. If she cannot come up with the rent + late fee, then allow the late fee payment with next months rent. But only if she has the rent. If she cannot come up with the rent, start eviction. In So. Ca. that is a 3 day notice to pay or quit. So that gives her more than 1 week to get you the rent.
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Deanna McCormick
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
Glad it's resolved,, but a post mark is legal and if it's dated the 1st. it would stand as that, the 1st...
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Joe SplitrockPro Member
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
9y
@Matt Faix it sounds like it is working out this time. For future I would suggest that you setup an account at a bank local to your properties and let the tenants deposit directly into your account. This works great for our cash/money order tenants. Tenants with a checking account should pay online. It is just best to take the post office out of the mix. I have had troubles on and off with the post office. I have a similar policy, due on the 1st and late fee after the 5th, but if the rent check is post marked before the 1st of the month I will not charge a late fee. I
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Joe SplitrockPro Member
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
9y
Originally posted by @Deanna McCormick:

Glad it's resolved,, but a post mark is legal and if it's dated the 1st. it would stand as that, the 1st...
Of course if rent is due on the 1st, then a check dated the 1st would technically already be late. It impossible for mail to arrive the day it is sent. I do agree though that a postmark is legal verification of when something was sent.
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Bryan Wallace
Jeffersonville, IN · Member since 2016 · 36 posts · 20 votes
9y
When I managed a small water company, we had lots of people mail their payment to our office. Sometimes the post office does misplace or lose the mail - it happens. However, you quickly knew which folks would consistently be late. 95% of the time it was the same people each month (they spent a ton in late fees each year). For the other 10% that was late, we worked with them on the late fees.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y
She sent on the 1st because she waited too late to send. Our lease states - Due on the 1st, late fee after the 5th
Do your state regulations not allow a late fee to be applied as soon as the rent is late. It seems very odd that late does not mean late. Based on your lease the rent is not due or considered late before the 5th. At lease if I was your tenant that is how I would interpret the language.
If she mailed it on the first, based on your lease, and considering the post office is beyond her control I would say she was not late.
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Bren Miller
Selkirk, NY · Member since 2016 · 8 posts · 2 votes
9y
It has been her normal practice to send money orders with tracking numbers. Granted, she sent the payment on the 1st, expecting it to get there by the 5th. The issue of the lost payment was not her fault, it was the post office's. A good paying tenant who respects your property is not someone you want to tick off on a situation that was out of her control. I would not charge her a late fee unless she sent the payment late. Clearly she was trying to get the payment to you within the five day window.
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Claude S.
Investor · Savannah, GA · Member since 2016 · 79 posts · 62 votes
9y
Why can't she open a checking account and then pay you electronically using Cozy.co or one of many other online services?
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