Rent is late ...should I pursue it?

Question

Four tenants pay the total rent. It was set up ( NOT by me) for them to pay 1/4 of the rent each ( which I thought is ridiculous. I would have set it up for one of the tenants represents the others and pays the total rent). I sent them the website to pay rent. This is the first time they used the website. One of them was late so the late fee applies to all 4 tenants( House is rent as a whole). Should I pursue the late fee? What would be the best action? Any advice/input would be much appreciated

Mary M. · Answer

I would talk to them. Perhaps there was a misunderstanding or one of them is not good with tech.

I would pick up the phone or text the person who was late and just have a conversation.  I dont charge late fees on the first time someone is late.  But if I were going to chatge the late fee in this situation I would charge a prorated fee based on the amount that was late.  I would text/call tenant and say “hey, noticed rent was late.... since it arrived on x day I will need to charge an x late fee” i find tenants respond better if you treat them as customers and not opponents

And finally, i am happy to have 4 tenants pay rent from 4 different accounts.  It does not bother me at all.

Forgot to add: be sure your area does not have a COVID overlay on your local tenant/landlord laws

Mary M. · Answer

Well, treat them as humans and they might surprise you!   I would just be friendly and see if you can develop a good landlord relationship with them.  I find this is really helpful.

What I meant by COVID overlay is any temporary laws that might affect charging late fees, etc

Account Closed · Answer

Mary ...I agree ..and I haven't treated them as non-humans! :)..Just want some pointers from experienced people like you. Again, thank you. I will check into the Covid overlay.

Account Closed · Answer

what is COVID overlay on local tenant/landlord laws?

Account Closed · Answer

Thank you very much  Mary M. You gave me some good ideas. I might try the prorated fee....I think that 4 tenants pay rent have 4x the chance of being late! ... I rather have tenants paying on time than being late and have to deal with a late fee! I definitely don't want opponents as my tenants! But unfortunately The Rental Company ( before I took over) pitched us againts each other based on how they handled the rental. BTW I did not pick these tenants. I am just stuck with them.