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Updated about 8 years ago on . Most recent reply

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22
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Ronnie Woolbright
  • Investor
  • Arlington, TX
13
Votes |
22
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Late fees and month to month lease

Ronnie Woolbright
  • Investor
  • Arlington, TX
Posted

HI all,

I have a tenant (Texas) with an upcoming lease expiring and wondered if I can raise the late fee while going month to month? Does this require a new written lease or just a written notice regarding a late fee increase? 

They are good 3 yr tenants who faithfully pay a late fee each month. When talking with a mentor of mine he mentioned my fee was too low and should raise it. Its at $35 now plus $5/per day additional. I usually get rent on the 10th-15th of each month and want to reign that habit back in by going to a $75 initial fee with $10/day additional. Also would be raising the rent for the first time on them in three years since it is well under market (from 995 to 1150). The market rate on this home is about 1300. I wanted to stay month to month so that I can test their ability to pay the higher rent and see if they will be able to get on schedule again. If they cant get with the program I plan to terminate the lease in the summer and relist it at the market rent of 1300.

Thoughts?

Thanks, 

Most Popular Reply

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1,193
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968
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Jim Cummings
  • Residential Real Estate Broker
  • College Station, TX
968
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1,193
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Jim Cummings
  • Residential Real Estate Broker
  • College Station, TX
Replied

Ronnie

The Texas Real Estate Commission (TREC) Lease Extension form provides an OTHER Block in which you & Tenant can agree to Amend the ongoing lease. A more straightforward idea would be to do a SHORT-TERM Lease with your new parameters.   

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