When to consider kicking a tenant out

Question

I have only been landlording for about two years now and have been lucky with tenants to this point. However a tenant of mine that moved in in November hasn’t been late on his rent each of the first three months (except first month which was prepaid). According to my lease rent is due in the 1st with a grace period of the 5th at which point if it is not paid in full a $75 late fee is owed. In December it was in my mailbox the morning of the 6th, and I did not press the issue of the late fee. In January they paid the rent in time, but paid the utilities late. I told them the late fee was owed. They paid the utilities a few days later with a partial late fee payment. I once again didn’t not press the issue. In February they told me they would have the rent to me by the 8th with utilities and late fee included but it is 10:00 pm and there’s nothing in my mailbox. They have complained about the utility payments which I went over in detail prior to and during lease signing and I offered to let them out of the lease if they found it unaffordable and they turned down the offer. My inclination is to encourage them to move out, but I want to make sure that I’m not overreacting to my first bad tenant. Just don’t want to keep going down a bad road.

Advice?

Thomas S. · Answer

Landlords please take note. THE GRACE PERIOD HAS NOTHING TO DO WITH WHEN RENT IS LATE> THE GRACE PERIOD IS ONLY IN REGARDS TO LATE FEES> IF RENT IS DUE ON THE 1ST IT IS LATE ON THE 2ND. THE PROCESS TO EVICT, PAY OR QUIT, IS ISSUED FIRST THING IN THE MORNING ON THE 2ND. This applies to every state and province in North America.Sorry for shouting but this is the most dumbass misconception new landlords have and the reason they are all training their tenants to pay late. Their tenants are smarter than they are. You have actually trained them to pay late through your misconception of how the regulations actually apply. It's no wonder we get posts the first week of every month about tenants not paying their rent.

Thomas S. · Answer

You have kind of dropped the ball so far in regards to enforcing your lease. Difficult to suddenly enforce a lease when you have been teaching them that it is OK to pay the rent whenever they choose. You should remove the late fee clause from your lease if you do not intend to enforce it.What you should do is when they get around to paying this month tell them that if they are late again you will post notice and if necessary evict. The cure or quit notice is posted the day after rent is due when rent is not payed in full.When they do pay late again you make it clear that one more time and you will evict. Since you have not trained them to pay on time it is not fair to just toss them out.

Andy Mink · Answer

Also because the tenant has only been there 3 months they shouldn’t get any slack. I will tell tenants “hey if you are going to be late with rent at least give me half of it so I know you are trying to make it right, and I’ll work with you”. This shows me that they are just short, but intend to pay when they get the next paycheck. if they owe you $1000 and it’s 10 days into the month then they are only 20 days from owing you $2000 and then they start to do the math and decide it’s better to just go get a different apartment

Andy Mink · Answer

Usually the first step in the eviction process is the notice to quit. I don’t know your states laws, but I would start researching the eviciton rules, and just treat it as if this person is never going to give you another dime and start the eviction process. If they pay what is due, great, but if they are just going to string you along everyday you wait to start the process is another day you are giving them free rent and more wear and tear on the property.It’s not a fun situation, and it may be something that is out of the tenants control, but the bottom line is that they signed an agreement, and you need to enforce it. If they didn’t make their car payments then the repo man would be on his way. You can’t give them an inch, they take a mile. It’s not fun to be the “bad guy” but it is a lot less fun to lose ten grand in lost rent, lawyer and court fees, and damaged property if this tenant decides to go deadbeat

Account Closed · Answer

I think that would be a state specific requirement. If you’re trying to train them to pay on the first then on the second you need to post a notice that it’s late. Because rent is due on the first you don’t charge a late fee until the six so now according to the tenant in their mind rent is now due on the fifth

Thomas S. · Answer

Screw me once it's your fault, screw me twice it's my fault. Nothing could be truer than in the case of late rent payments. Ultimatly it is always the landlords fault for repeated late payments. Tenants are like puppies. You can not complain if they crap on the floor if you have not trained them not to. If they are untrainable you either suck it up and live with it or get rid of the dog/tenant. What you do not do is complain about your decisions.

Dennis M. · Answer

What’s all this grace period crap ? No wonder the guy has walked all over you . Imho That’s for extenuating circumstances not a no -obligation time frame where the tenant can just hang out and not pay till he feels like it .

Max Briggs · Answer

I do not believe that Ohio requires a grace period, but the leases that I have used, including the one I am using here drafted by my attorney included the grace period. I agree that it trains them that it is okay to pay rent on the fifth. But I’m stuck with it now, and I don’t want to eat in trouble down the road for posting noticed within the grace period called out in the lease. Maybe in the future I will eliminate the grace period clause (assuming my attorney verified that it’s allowed). But I think I’m stuck with rent payments on the fifth and notices posted in the sixth for now.

Max Briggs · Answer

@Thomas S. my lease gives an explicit grace period to the 5th. So I am assuming that the first day that I can post is the 6th.

Thomas S. · Answer

"notice will be given in the 6th of every month"You still have not learned the lesson. Notice is given the day following rent due, rent due on the 1st notice issued on the 2nd. If you want to tighten up your business you do not deviate from standard. If you wait till the 6th you are continuing to send the message that paying rent on time is not important.