How do you deal with Chronic Late Payers?

[Mike D.]

I've inherited a few rentals with chronic late payers. They are all 10-20 days late. I always post the notice to pay or quit about 5 days in just in case they don't pay, but they always have.

I'm sick of posting notices every single month and then certified mailing paper copies. They are on month to month agreements so just kicking them out is an option. But on the other hand why kick out people with a track record of paying? Each unit will need $1500+ in paint/carpet/etc. when they leave.

I'm thinking I will just raise their rent $40/month permanently. I could care less if they decide to leave because of the rent increase.

Would appreciate hearing what others do with chronic late payers? Kick them out? Late Fees? Huge rent increase?