Tenant Late on the Rent

[Tammie Welch]

Good Morning,

We have a tenant that stated they will be late with their rent for June.  They asked if they can pay $400 on the 1st and remainder $475 by the 15th of June.  She didn't mention paying the late fees of $50.00 and $25.00 each additional day for total of $275.00.  The  reason why they are late is because of unexpected car repairs.  Any suggestions on how to handle this tenant?  

[Jill F.]

Originally posted by @Tammie Welch:

Good Morning,

We have a tenant that stated they will be late with their rent for June.  They asked if they can pay $400 on the 1st and remainder $475 by the 15th of June.  She didn't mention paying the late fees of $50.00 and $25.00 each additional day for total of $275.00.  The  reason why they are late is because of unexpected car repairs.  Any suggestions on how to handle this tenant?  

I self manage properties in C- areas. If I wasn't willing to work with tenants when problems come up I'd constantly be churning my units. Instead I have a very stable tenant base with people that take care of my properties. Here is what I do:

As long as a tenant stays current on daily rent, AND notifies me in advance, I'll accept a payment plan. Good tenants always do what your tenant did, they notify in advance, they have a plan, and the plan includes paying a good bit NOW. I send an email confirming the payment plan and waive or discount the late fees if payments are made on time as agreed. This kind of policy will ensure that you have loyal tenants because so many landlords won't work with people. If your property is in a "B" neighborhood you probably wouldn't have to do this because you could find tenants that aren't living so close to the edge. In one of the neighborhoods were I manage, EVERYONE willing to live there is living paycheck to paycheck. Most tenants are just relieved that you will work with them and aren't going to be rude.

PS. My history isn't terribly long but it's been two years and nobody owes me any money and I haven't had to do any evictions.