Incentives for tenants with chronic late payments

[Sofiya Cherni]

Tenants usually pay on the first Friday of the month. I’ve had them for 2+ years, 0 payments were received on the first of the month. I don’t send out late rent notice nor eviction notice, they are my literal neighbors. By law I can’t charge a late fee until after the 10th of the month, the latest they’ve paid was the 8th.

Would you bother offering an incentive (ie no rent increase on next lease term if all payments are made on time during the previous lease term) or just leave them be?

[Nathan Gesner]

Rewarding someone for bad behavior is a great way to encourage more bad behavior. Upgrading their rental, offering discounts, and other incentives are just another way of showing you're a weak Landlord. Many tenants, if not most, will take advantage of your weakness, now or later.

I just read the Maryland statutes and don't see anything that requires you to wait 10 days before charging a late fee. In fact, the statute is very clear that you can start eviction "immediately" after rent is late. Where did you get this requirement? You should purchase "Every Landlord's Legal Guide" by NOLO and familiarize yourself with the law and practical application.

You've allowed them to pay rent late for two years. You have a few choices:

• Allow them to continue and hope it doesn't get worse
• Notify them you will not be renewing their lease. Find new tenants and start over.
• Renew their lease that includes penalties for late payments and then enforce it.

Which option will work best? That depends on your abilities as a Landlord.