Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 15 years ago on . Most recent reply

User Stats

2,498
Posts
280
Votes
Bienes Raices
  • Orlando, FL
280
Votes |
2,498
Posts

How does "oldest debts get paid first" clause work in lease

Bienes Raices
  • Orlando, FL
Posted

I would like to add an "oldest debts will be paid first from the rent" clause to my lease, but I'm a bit confused about how this is applied in the real world.

Let's say the rent is $1000/mo.

They pay the full $1000 for February rent, but they never paid, say, a rent late fee or a water bill (that was in my name but they were required to pay me each month) that was due in January, for $30.

So with the rule applied, they've only met $970 of their $1000 obligation for February rent. However, if I accept the $1000, technically I'm accepting a partial payment of rent, which is a bad idea. So would the idea be to just refuse the $1000 payment and post the 3 day notice at that point, or are these "old debts" just carried on and removed from the security deposit at the point when they move out? Thanks.



Most Popular Reply

User Stats

22,059
Posts
14,127
Votes
Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
14,127
Votes |
22,059
Posts
Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

Why add a clause to your lease that's hard to understand? I have this clause in mine:

This means in your example, if I accepted the $1000, $30 would go to the other items, leaving $30 of the rent unpaid. I also have this clause:

I would not let the tenant repeatedly partially pay, as in your example, then take the rest out of the security deposit. The first clause above is specifically to give me the ability to evict if they don't pay EVERYTHING they owe.

Loading replies...