Can't collect rent on time

[Jonathan VanderPloeg]

This question is more geared towards my fellow Canadian landlords since our laws are different from other countries. I'm currently in a small town outside of Ottawa Ontario. When my wife and I took over our rental property last month we met with each tenant and told them we would be collecting rent a day or two before the 1st of each month. I recently called one of my tenants and told him I would be by tomorrow to collect Mays rent since the 1st would be 2 days away. His response caught me by surprise when he said he would not have the rent payment for tomorrow. So I asked him when he would have it? To which he replied I will have it on the 1st. I said we had discussed this earlier that rent is due before the 1st of each month, not on the 1st. He said nope it's due the first, that's how it is. I replied with what I had told him earlier about collecting prior and he just came back with his 1st comment. So I politely ended the conversation since I knew it was going now where. Some other pertinent info, this tenant is on a verbal month to month lease. And he also pays well below market value for his unit since he has been living there for over 5 years. I would classify him as a professional renter. What are my rights as a landlord in this situation vs his rights as a tenant? Do I just collect the rent on the 1st, then say since your on a verbal lease your new monthly lease stats that you must have rent prior to the 1st moving forward? Or do I have to give him X amount of days notice of this change? Any in site would be greatly appreciated

[Marcia Maynard]

@Roy N. is spot on and he's from Canada! Follow him, ask him to be your colleague. Other folks have made some good points too.

I'm going to comment about the term "professional tenant". In our industry, it means a person who knows how to work the system, not pay rent, and stay in a unit legally as long as they can. In your situation, you don't have a "professional tenant", you have a "long-term tenant" who pays rent on time. Long-term tenants are good.

If you think the tenants are now paying less than market rate, then you can consider raising their rent. If you raise rent a little bit at a time, you will often be able to retain tenants and improve your cash flow. If you raise rent with a big jump, you will be giving them reason to move, which could result in a vacancy. When an apartment turns over, one often ends up spending more money (to spruce up the unit or make repairs) and earning less (no rent while the unit is vacant). A turnover, also will consume more of your time and energy. If you are new to landlording, sounds like you are, your time would be better spent learning the laws for your jurisdiction, and developing your landlording skills.

At this juncture, it would be best to focus on getting the existing tenants onto a well written rental agreement. I prefer month-to-month because you can more easily make adjustments as needed. 

Win the tenants over....attend to any deferred maintenance and don't rock their world too much. This has been their home for some time, so be respectful, keep an open mind and listen as they clue you into the history of the place.  Be friendly (polite & professional), fair (treat everyone the same and abide by the Residential Tenancies Act and other laws for your jurisdiction, firm (clear in your direction and follow-through), fast (to attend to tenant requests, keep up on maintenance, and enforce the terms of the rental agreement) and flexible (when warranted and for extenuating circustances.)

Good luck!