Greenwood, IN · Member since 2015 · 4 posts · 0 votes
Hi,
I have a tenant who for the last 6 months has been paying late rent. I'm not sure if its a problem or a warning sign. This family has rented from me for 4 years and up until last year, was late once a year (December Christmas time). Well, now, I get a very polite text on the 1st, telling me they will be late, will pay on the 10th (14th or whatever date). On the 14th, like clockwork, I get a deposit of FULL rent and late deposit ($50 late plus $20 every late day). This is usually $100-$200 in extra fees.
I'm puzzled. Its more expensive for them to pay late but they do. They are good tenants, take decent care of the property. Am I being finicky?
Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
9y
Cashflow problem, won't be a real problem till they can't cycle the cash quickly. Normally that's somewhere in 15+ days. Once they hit 20+ they are dead in the water and are just going to default. It's up to you, you can ride it out, or get them out
Real Estate Agent · Villa Rica, GA · Member since 2017 · 38 posts · 28 votes
9y
@Omow A. My thought would be someone's pay schedule changed, ie they went from weekly paychecks to every two weeks or monthly. They don't have the cash on the 1st, but on the 10th they do. And hundreds in late fees a month is a lot.