10% increase so chronic late-paying renters will move California

[Ash Townsend]

Hello,

One of my tenants has paid the rent late seven out of eight months (including the rent for August) this year. Typically, they pay less than half to half the rent around the 8th or 9th of the month (which is already late), then the remaining rent plus a late fee between the 18-22 of each month. I told them numerous times, both verbally and in writing, that the rent must be paid on time every month, yet they continue to break the terms of the payment terms per the rental contract. This morning, I verbally notified them that I will serve them a 3-day pay rent or quit notice if they pay late again. However, it would be easier if they moved out on their own, which will not happen at the current rental rate. My rental property is in Sacramento County, which currently has no rent control. I read online that a rent increase of 10% or more requires a 60-day written notice. Do you think Increasing the rent by 10% with 60 days to decide whether or not to pay the higher rent or move out by October 31 is a good plan? This is not about raising the rent; if they paid on time like my other tenants, there would be no problem.

Please let me know your thoughts on this.

Thanks,

Ash

[Michaela G.]

They obviously get paid every 2 weeks. Since they are tight with money, you might force them into an eviction, because they'll be between a rock and a hard place, as they'd need to come up with deposit for a new place, but won't get deposit back from you until they've moved out. 

Have you considered making a rent increase and also splitting the rent up into 2 parts? Paid on the 1st and the 16th. It'll make it easier for them to come up with it on time and you'll make more money. 

In addition, this will be so helpful for them and knowing that most landlord don't do that, they will likely stay for a long time, which saves you money.