Late payers, regulars, slow rolling every month

[Account Closed]

Earlier this year we took management of our properties back, so we are now self owned and operated. We have found that many tenants do not take the late fees or notices seriously, many want a payment arrangement each month, and then even miss the arrangement. Now, yes we have evicted some of these people, but almost a year into it we still have 10% or so that are always late and slow roll you all month. Obviously you can not evict 10% of your tenants in a month, so what are some options or suggestions for how to handle these people? Most of them have been with us for ever and many of them are fantastic tenants except for when it comes to taking their payments seriously. Many have formed friendships with myself or the owner and think that they can get special treatment and all. Any tips would be great!

[Marcia Maynard]

[Here's our "Rent Past Due Letter".  Use letterhead stationery. I usually hand deliver this to the door, but it can also be mailed.]

Business Name

Business Address

Business Phone

Dear _____________________________,

Your rent is now past due. Please pay your rent promptly so you may continue to live in the unit that you now occupy.

As per your rental agreement:

Rent is due on the first (1st) day of the month.

Rent is late on the second (2nd) day of the month.

We allow a grace period through the fifth (5th) day of the month to pay your rent without incurring a late fee.

On the sixth (6th) day of the month we charge a late fee of fifty dollars ($50.00).

If we do not receive your rent in full in a timely manner, we will serve you with a 3-day legal notice, “Notice to Pay Rent or Quit”. Each time we serve a legal notice, we charge an additional twenty dollars ($20.00).

If you do not follow the terms of the “Notice to Pay Rent or Quit” we may then begin eviction proceedings against you and you will be charged with the crime of “Unlawful Detainer” if a judge upholds our claim.

The amount of rent now due, as of today’s date _________________, is as follows:

Current Month Late Fee_______________

Current Month Rent_______________

TOTAL DUE_______________

Time is of the essence. If you have not already posted your rent via the mail, please call us immediately to make arrangements for us to collect the rent in person.

Thank you for your prompt attention to this matter!

Sincerely,

Landlord/Owner/Manager Name

Landlord/Owner/Manager Signature

[From the Bigger Pockets file place of Marcia Maynard. Permission granted for individual use. May not be copied for publication.]