**Late Rent** How long to give your tenant to pay rent?

Question

Hello,

I have a tenant who ALWAYS pays rent late.  He has been in my house for 8 months and has only paid on time once.  However, he communicates well with me in a timely fashion to notify me that he will be paying rent late and has always paid the late fees.  He also keeps the property in good condition.

Rent is considered late if it is not received by the 5th of each month.  He usually pays a few days after that but recently he has been pushing the limits.  Last month he paid on the 13th and this month he has it scheduled for the 17th.  My question is, how long do I give this tenant to pay rent before action against him is taken?  I definitely don't want to be in a situation where he is a month or more behind.  Also, what kinds of things can I do to help the situation?  I have already suggested that he pay with a credit card and then pay off his credit card when he has the money.

I live in West Virginia where you can file for eviction for not paying rent right away without even giving notice to the tenant.

Thanks for your advice!

Thomas S. · Answer

Notice to pay or quite is given the day following when rent is due. Rent is due by 12 PM on the first it is late at 12:01 AM on the second.

At this point in time you have relinquished authority to your tenant to decide when they choose to pay rent. You no longer control that part of your business.

When a tenant pays late a landlord has three options:

1) Live with the tenant being in control.

2) Inforce your lease - follow state landlord tenant regulations.

3) Evict

Choosing option #2 sometimes but rarely leads to #3. By not choosing option #2 a landlord has only one option going forward...#1.

Choosing option #1 often will lead to option #3.

It's your business you decide how you want to run it or you allow your tenant to run it. Since you have given your tenant the responsibility of deciding when they pay rent I do not see your  problem.

Thomas S. · Answer

Do not renew his lease. If he can pay on time now he could have paid on time all along. If anything offer him a M2M and tell him the first time he is late he will not be renewed.

Robert Lasko · Answer

This has been very helpful!  I had a discussion with him yesterday and made the point that I need to be paid on time and that I wasn't be going to tolerate late payments on a consistent basis anymore.

He actually asked if I could sign another year lease because they loved the place and I said that if he paid on time for the remainder of his lease then I would consider it.

Karen S. · Answer

I have experienced this pattern in the past. The steady, but late pay, with late fee irritated me but my partner was ok with it. When the payments started to exceed the grace period in our lease and almost made it to the next month before we got paid, it was time to say "you can't afford this house at this time". It's not personal-- I mean there are houses that I myself cannot afford to live in.

If you always send pay or quit letters and always send on the same schedule (whether on the 2nd or later) you are protecting your business from charges of unfair treatment later on. When the letters stop working and there's a worrisome trend though it is time to follow through with the tough discussion.

David Dachtera · Answer

@Robert Lasko,

You need to decide where you will draw the line, given that you've already established a pattern of tolerance.

He's getting progressively later which means something is going on with his finances. Maybe he changed jobs recently and had to go three or more weeks without a paycheck (I had to go almost two months, one time).

It may, indeed, be time to "get tough" and say, like the old line from the movie, "I'm as mad as hell and I'm not going to take this anymore!".

I'd say, tell him - by whatever means - you understand he is in a situation, but he has an obligation to you who provides the roof over his head. If he can no longer meet that obligation - even with late fees - then it's time to make the needed changes.

Robert Johnston · Answer

Lots of really great advice here.  Try to remember that you're running a business and you have to treat it that way.   A lot of landlords jump straight to legal action, which can be good and bad.  You seem to have a great tenant (aside from the late rent issue) and he keeps your property in good condition, which is a blessing for some.  Personally, I'd have a candid conversation with the tenant given the fact that he's continued to pay and has also covered any late fees.  Maybe you can work out some kind of plan to get him caught up and on time, with the ultimatum that if he can't, you'll have to find someone else to rent the place.  Something as simple as, "Listen Tenant So-and-So, I know that I've been willing to accept late rent payments in the past, but your late payments have really gotten out of hand and off track.  Starting next month, rent is due on the first of the month and I will be sticking to the terms of the lease agreement from now on."  Make your intentions clear and be prepared to stand by them.  If you say rent is due on the first, it's due on the first - no exceptions and don't accept a late check as "okay."

I had a similar situation in my rental with a couple that was having a bit of a rough time financially.  We set up a payment plan that got him and his family back on track.  The rent came in earlier and earlier until it was finally on time.  In fact, he decided at that time that he wanted to pay biweekly instead of monthly to avoid getting behind on his rent from that point forward.  To me, having someone in my place that takes care of it is more valuable than going through the eviction process and starting from scratch.  Sometimes, just having that conversation can go a long way instead of slapping a notice on the door, which can cause someone to get defensive or angry.   Although, every situation and tenant is different.  Nightmare tenants get the notice, but I try to work with the good ones because I feel that's in my best interest as a property owner.

If all else fails, you have the above advice to guide you and don't be afraid of the eviction process.  There are plenty of tenants out there that will pay you on time!

Roy N. · Answer

Why are you allowing your tenant to train you?

Rent is due the first of the month and (pending what is written in legislation and your lease) late as of the second.  You may, as policy, not assess a late fee until the 5th, but I would consider serving a Notice to Vacate the day rent become late (2nd) giving the tenant 7-days to pay or 15 to move {or whatever terms are specified in your legislation}.

Late Rent How long to give your tenant to pay rent?

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