Tenant Frequently Late But Pays Late Fees - What to Do?

[Eric Jones]

I've had a tenant now for about 4 years and they are all around good tenants and good people. They have really made the house their home and will likely stay for years to come... The issue is they are late on rent... a lot. In the last 12 months, they've been late 10 times. They are almost always two to three weeks late so they are incurring significant late fees of $100-200 per month on average. Fortunately they honor the lease and pay the late fees, so I've made a killing in the process. Several times I have reduced the late fees a bit to help them out. 

What would other landlords out there do in this situation? Thus far I've done very well by being patient and working with them. I trust that they will continue to honor the lease and pay their late fees, but there is a hassle factor for me as I do get tired of feeling like I always need to chase down rent. Would you deal with the hassle given the fact that they are paying the late fees, or end the lease (month to month) and deal with typical turnover costs in order to find a better tenant?