Stopping Late Payments

[Nicholas Paros]

I would like to get everyone's opinion on a matter. I have a couple renting from me that are constantly paying late. Now I have a late fee policy in place and I enforce it (rent due on the 1st,$50 on the 6th, $10 per day every day after the 6th it is not paid). Whenever they do pay they always pay all at once including all late fees but I would rather collect all the rent on the first rather than have to chase them down for late fees and late rent (more sustainable business model in my opinion).

I am sure many of you have encountered this, is there any advice as to how to get them to pay on time. I do use cozy for payment processing and have auto payment set up but many times the payment fails due to insufficient funds. Any advice or tips are appreciated!

[Thomas S.]

Tell them if they pay late again you will not be renewing their lease. Either you get a new tenant or they pay on time. If payment is failing due to insuficient funds eventually in the natural course of life you will end up having to evict. They are living on the edge. Either they fix their financial life or you get a new tenant. Win/win.