Tenant paid late 3 months in a row

[Nina Zou]

Tenants moved in in Apr with low credit score and not very sufficient income. I rented to them because his mom co signed and lived just couple of doors away in the same community ( What a lesson! I should never rent to anyone if they are not qualified, but now it is too late.)

Rent is due on the 1st. Aug they started to pay late, 1st time I served the Notice to Quit after 6 days. Sep, the husband called me on the 6th told me wife was searching for a new job, didn’t serve them the notice because he called. They paid Sep rent on the 10th.

Oct they haven’t paid up to now. No call, nothing. I’m planning to serve the notice again. But what if they pay late every month ( I do charge a $50 late fee). I don’t have time to go post the Notice to Quit every month.

Can I terminate the lease because of consistent late payment? We are in PA. 

[Erik W.]

@Nina Zou, hi and welcome.

As others have said, there are two choices: continue to tolerate the late pays or get rid of them.  Decide which one you want to do.  

My rule is I evict 7 days after rent is due and unpaid, or if a significant portion (25% or more) is unpaid.  My state doesn't require Pay or Quit notices, nor is there a legally mandated grace period.  So if I really want to, I can evict the day rent is late.  But I don't.

What I will do is put people on a payment plan of MY choosing.  Typically, a monthly payer I will put them on a bi-weekly payment.  They owe 50% of the monthly rent rate every 2 weeks.  I demand they get on that plan or I will file on day 8 of late rent.  No exceptions.  They sign a lease addendum modifying their payment plan.  Late fees still apply if they call after the due date.  If they call before, then we can get them changed over with no penalty.

When there is an emergency, a lot of folks struggle to come up with a full months' rent.  But they can often manage 1/2 months rent by borrowing from a friend/family member, then 2 weeks later they get another paycheck and can get back on track.  Being flexible on my terms can help avoid a downward spiral of late fees.

Here's the good party too: a lot of folks like timing their rent payment to line up with their paycheck.  Many people get paid every 2 weeks, so why not have your rent due on that same day when there is money available?  Then you're first in line to receive rent vs. somewhere in the middle or last.  The bonus is this: bi-weekly means paying every 2 weeks...NOT twice per month.  If you can do math, 26 half payments per year = 13 whole payments, so you get equivalent to one extra month's rent each year for your flexibility.  Lots of folks choose this plan at lease signing for me, even when I clearly explain it and have them initial a paragraph in our lease showing that it costs a little more.  

"Easy payments" is the mantra of the middle class who finance everything from cell phones to furniture.  It works for people who can't budget/save a full month's rent.