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Updated about 6 years ago on . Most recent reply

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Gary B.
  • Hayward, CA
12
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133
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Tenant is always late on rent

Gary B.
  • Hayward, CA
Posted

I have a tenant who is always 2-3 weeks late in her rent. It is more of an habbit than hardship. Her lease still has 8 months in it. What are my rights to serve her notice to move out or i have to live with it until end of her lease?

thanks, Get 

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Marcia Maynard
  • Investor
  • Vancouver, WA
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Marcia Maynard
  • Investor
  • Vancouver, WA
Replied

Everything's negotiable.  What did you and the tenant agree to at the start of tenancy? What have you done to enforce the terms of the rental agreement since the start of tenancy? 

Is the late fee enough to compensate you for the inconvenience of rent being paid late? Is the late fee enough to deter the tenant from paying rent late?  If a tenant chooses to pay rent late and pay the late fee within a timely manner, then I wouldn't sweat it. But 2 - 3 weeks past due would not be acceptable. If rent is not paid by mid-month, then it's likely the tenant will not pay rent on time the next month and it becomes a never ending spiral downward.

You need to follow a procedure to retrain the tenant. 

  1. Start with a face to face meeting. Seek first to understand why they are in the habit of paying late. Then address that head on. 
  2. If they can still afford to rent the unit, but have developed bad habits, you may be able to save the tenancy. Have them set up bill-pay with their bank or find another way they can pay you automatically.
  3. If they can't afford the rent and/or won't pay on time, then it's time to talk about a move-out plan.
  4. Review your expectations and the terms of the rental agreement.
  5. What your tenant does or fails to do will determine what you will do. Make this clear. Have a plan.  For example: If a tenant doesn't pay rent when it's due, they receive our Rent Past Due letter. This reinforces exactly what we will do if a tenant doesn't pay their rent. Here's that letter:

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) posting fee.

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,

Fischer Properties – Owners

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