I've trained a tenant to pay late . . .

I've trained a tenant to pay late . . .

Sun Prairie, WI · Member since 2013 · 150 posts · 69 votes

One of my tenants constantly struggles to pay rent on time. They have always paid my late fee. There is ALWAYS a reason they are behind. One spouse just got laid off and received a large longevity payment as part of the lay off. When that happened, they paid me off for more than 6 months of late rent (i know I've been too lenient). I warned them that I would never again let them get behind and all rent must be paid on time. 

Well, it's the 4th and I have no rent for September. St one point they had said they were going to prepay rent through October so they didn't have to worry about rent while spouse is looking for employment. Of course, that didn't happen. 

I texted today saying that tomorrow would come their quit or pay notice. I get a snotty return text (at least that's how I read it as you can't really read a time in a text) essentially saying they hadn't received the unemployment check yet for the last two weeks of August and since I wouldn't let them make payments and wanted payment in full . . .  I guess the idea is they think their lateness is my fault for not letting them make payments. From what they told me previously there should have been $10,000 left after paying me. Wtf did they do with this that they can't make rent the first month after that large payment? 

Should I take payments or start eviction?  My only hesitation about starting eviction is making it harder for them to get another place to live. 

Okay, be hard in me. What would you do?

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Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
9y

There are way too many posts on BP on how to handle something as simple as rent collection and late fees.  Sorry for the tough love but enforcing the lease terms and late fees are way down on many investors' list of real estate challenges.  I'd recommend keeping it simple, clear, and unemotional and enforce the lease or you will burn out or not make any profit.

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  • Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    9y

    There are way too many posts on BP on how to handle something as simple as rent collection and late fees.  Sorry for the tough love but enforcing the lease terms and late fees are way down on many investors' list of real estate challenges.  I'd recommend keeping it simple, clear, and unemotional and enforce the lease or you will burn out or not make any profit.

  • Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    9y

    evict 

  • Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
    9y
    File eviction by the 15th. they can continue to stay but they'll have to pay the eviction fee. retraining is tough filing a eviction is the first step.
  • Investor · Latham, NY · Member since 2014 · 217 posts · 65 votes
    9y
    Evict and take it as a lesson. It's the struggle between being a caring, compassionate human being and running a business. Unfortunately...if this isn't a hobby for you then you don't give them control. Explain to the next tenant from the get go (even with a drawing/diagram/flowchart) about how rent collection will be handled. These tenants must think I'm a little crazy with all of these diagrams but they seem to remember them. Due on the 1st, late on the 4th(or a reasonable date..see local law). Explain that if it's not in possession by the 4th, then an automatic pay or quit notice is generated and sent out. In return, you strive to keep the property well maintained and address concerns quickly. It's far too easy to make exceptions until you start missing mortgage payments. Good luck
  • Investor · Greeley, CO · Member since 2012 · 42 posts · 8 votes
    9y

    Rule 1.  Have a payment policy and have it clearly communicated in your lease.

    Rule 2.  Enforce your payment policy.

    Rule 3.  If you any questions refer to Rule 2.  

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