Bizarre Tenant Behavior With Rent Payments

[Gordon Barbay]

I have a SFH in Indianapolis. For the last three years now, the tenant has been acting in what I consider to be a strange fashion concerning the rent.

One or two times a year, the tenant fails to pay their rent and, after the usual hoop jumping, we file eviction papers.  Then, usually within a week or so of the court date, they come up with all the back rent, late fees, and eviction fees, and so we let them off the hook.  

If this happened once or maybe even twice, I could see, but it seems to be happening on a regular basis.  I just cannot get my mind around such behavior.  If they can afford to get the money  when facing eviction, why not just pay the rent on time?  It would be less stressful for everyone, and cheaper for the tenant. 

Anybody else run into this?

[Matt K.]

I switched a tenant to biweekly payments ...and it worked out great. They used to be late often so I offered them the opportunity to go biweekly and less of a grace period.

I used to do the first of ea mo and then 4 day grace period. I've now shifted to the 1 and 15 with 2 day grace period. This gets them through the weekend....if needed.

Took a month or so to adjust, but now it works great. Like to the point where it's either on time but more often early. It also doesn't allow them to get as far behind in rent and allows me the landlord to react quicker ...

Depending on the class of asset it comes down to getting your money before someone else. Lot easier to get 125 a week for example then 500 once a month (which could be an entire paycheck for some). People going to get food, gas, entertainment before they pay that 500....