Payment over due. When do you send an eviction notice?

Question

I've owned the property for three months. It was fully rented when I took it over. Tenants paid right on time the first two months. This month two of them did not pay. I plan to send them a late payment notice. I did tack on the water bill ($25) and one of the tenants lease expired and requested month to month which increased their rent by $50. How would you handle this? I've seen some suggestions to include a notice of potential eviction. Is there a recommended format for notice of late payment?

Thanks,

Troy

Brian Smith · Answer

Here's the template I use. Just had to send it today as well... December 7th 2020 Address of rental unit: Tenant’s name(s): Dear [name], This letter is a formal notice to you demanding that you make immediate payment of the unpaid rent due under the terms of the rental agreement covering the above referenced property. As of December 7th, 2020, your December payment is 7 days past due. Your rent was due on December 01, 2020. In addition, you owe late charges as provided by the lease agreement. The following is an itemization of the total amount due: Unpaid rent: $ Unpaid utilities: $ Late charges: $ Total: $ This is a serious situation which requires your immediate attention. If payment is not received by December 9, 2020, collections and/or legal action to enforce your obligations under the rental agreement may be taken. I can be contacted if you have any questions or need additional information. My email address is [email] and my phone number is [phone number]. Sincerely,[name]

Randall Re II · Answer

Troy, Don't just text. Call them. Also, Empathy goes a long way in getting people to do what you want them to do. Ask them, "have you given up on keeping your end of the rental agreement?" "how am I not to start the eviction process or think the worst when you dont respond?" Tell them how you want to have good communication together, and if they are having a hardship, maybe you can work something out. Getting a conversation going is important right now at this point in time.

Tracy Streich · Answer

Account Closed There is no law saying you should send a statement. It is however a good practice. Our tenants can log on to their portal and see their statement and ledger at anytime. A tenant portal may not be feasible for a smaller owner. What it does is keep a clear documentation on a problem tenant. No he said she said or I did not know it covered late fees first then rent. Required no but does it benefit the owner yes.

Troy F. · Answer

Good to know. The security deposit does cover the rent but not late fees or the utility bill. I probably went too soft on this one. Definitely a learning experience.

Troy F. · Answer

Good news, kind of. I did exactly as you all said, text, phone call, and a certified "pay or quit" noticed. I think the empathy filled text did the trick. The tenants finally reached out to me. They had moved on for various reasons. They both cleaned their appartments and left on good terms. I told them I would be keeping their security deposit since they did not give me notice. I am bummed about two vacancies in a fourplex I just purchased two months ago but I am happy my place isn't damaged and I don't have to go through the eviction process. Some have said I shouldn't let them off os easy and that I should at least charge them a prorated rent for the month. Of course there is no guarantee they would pay the prorated rent after they are already gone. What do you all think?

Tracy Streich · Answer

You need to be sending your tenants a monthly statement showing the rent and the accumulation of the late fees. You will need this info to put on the 5 day notice. Make sure you fill it out correctly or the judge could toss and make you start over. With that said you cannot really evict anyone right now. Be consistent and document everything.

Stephen J Davis · Answer

Rent is due on the first, late on the second. I begin eviction and late fees on the fourth.

Troy F. · Answer

Thanks for the feedback. The property is in Nebraska. I sent them a rent reminder via text 5 days before the due date. Sent another text on the 5th, which is the end of the grace period. They are both usually very responsive through text. Then sent them an e-mail and text stating that they now owe an additional $50 due to the late payment. No response from either one.

Theresa Harris · Answer

You might want to post where the rentals are located. I'd first try contacting the tenants to see what is up. Then post the notice that Joe mentioned (if you are in the US).