Inheriting tenants with varied payment dates

[Leah Spurlock]

I am buying 11 houses from a retiring investor in which he collects rent at different dates for different tenants.  He knows when they get paid and has always collected on dates when they get paid.  Ideally, I'd like everyone due on 1st of month.  Any suggestions and how to transition these inherited tenants to 1st of month? 

[Christen G.]

Congrats on the purchase! Yes, get ahold of the leases and see where they all stand. Do you have a rent roll for each property? I've inherited tenants in every home I've bought and I'm proud to say we weeded out the deadbeats within the first 2 mo. Just go in firm, clear, kind and with simple directions and they'll usually see themselves out (COVID-stuff aside) as they see you mean business.

I've found that a nice "introduction/transition letter" that is mailed + emailed the closing date goes a long way. I've pasted mine below. Obviously some of the details are state-specific, so be sure to know your local laws and if you want to use any of this change the language up as necessary. If you weren't planning on it, I'd also humbly suggest getting inside each unit on closing day to take photos and get a new, updated Move-In Form for each tenant. Best of luck and congrats again.

YOUR MONTHLY RENT PAYMENT IS:

Base Rent: $___

Pet Rent: $__

Utilities: $___

Storage: $100/mo:
Total Monthly Rent Due:

HOW TO PAY RENT & LATE FEES

1- Rent is due on the 1st of the month and late on the 5th at 5:00pm PST.

2- Moving forward you will pay rent using an app called Cozy.co - you will receive an email to create an account within 3 business days.

3- If you prefer to write a check or use another payment method for rent, there will be an additional $25 processing/collection fee added to your monthly rent.

Late Fees

A late fee of $100.00 will be issued to all late rent payments plus $5/day for each day that it is not paid in full.

Lockouts & Emergencies

Dial 911 in case of an emergency, fire, break-in, if you smell gas, etc...

Lockouts: A lockout fee of $150 will be charged to any Resident needing to be re-admitted by Landlord

Mission Statement

YOUR COMPANY NAME HERE strives to provide, maintain, and improve affordable homes with exceptional service.YOUR COMPANY NAME HERE is a professional property management company that takes great pride in offering clean, quality rentals at an affordable rate. We are committed to this goal long-term and seek to provide the best property management in YOUR LOCATION HERE. At YOUR COMPANY NAME HERE, we strive to:

• Return all correspondence within 48 business hours with a plan as needed.
• Complete all maintenance issues and repairs efficiently, quickly, and courteously
• Consistently improve the aesthetic look of any property we manage
• Maintain affordability in rental rates and treat our residents with respect
• Provide exceptional service and support to residents

What Is a Lease?

A lease is a legal contract between the landlord and tenant. When you lease a home from us, this is what you can expect. At the commencement of your tenancy…

The landlord (Us) will provide a home that is clean, sanitary, in good cosmetic shape, and in good working order. The landlord will continue to keep the home in good working order and abide by the terms in the lease throughout the length of your tenancy.

The tenant (You) is responsible for keeping the home in good condition by practicing good housekeeping habits, including to prevent leaks, mold growth, rodents, and pests, treating the property with care to avoid preventable damage or maintenance needs, reporting maintenance issues in a timely manner, paying rent when it is due, and abiding by the terms of the lease throughout the length of your tenancy.

Maintenance

Please call or email us promptly with any maintenance requests. Your home has been thoroughly cleaned and inspected for any maintenance issues prior to your taking occupancy. However, we do not live in the home and therefore will not be aware when you have a future maintenance concern unless you tell us. It is 100% your responsibility to report maintenance issues.

Here is a list of items we want to know about immediately:

1. Mold (within 48 hours)
2. Drippy faucets, drippy pipes, or “running” toilets (within 48 hours)
3. Moisture where there should be none (roof, under the sink, on a ceiling, etc.)

Maintenance Requests

Please submit your Maintenance Requests via email to: INSERT YOUR EMAIL HERE We are committed to responding to you with any questions and/or a plan (if necessary) within 48-hours.

Your Repair Responsibility

Mold (from living conditions): Mold will grow if given the opportunity. Keep your home clean and dry, with adequate ventilation and air movement. This means making sure all rooms receive heat and airflow on a consistent basis. Immediately clean up any sign of mold or mildew growth to prevent damage to the building. This includes behind furniture, in windows, in corners of walls, etc.

(Some) Leaks: You are responsible for leaks caused by misuse or neglect (such as knocking drain lines loose). Report all leaks immediately, as they can become a very big problem very quickly.

Faucets/knobs: Faucets and knobs can break easily if not handled properly.

Broken windows, blinds, doors, glass, locks, or any other damage caused directly/indirectly by you or your guests.

Light bulbs: These are your responsibility to replace.

Batteries: It is your responsibility to keep your smoke detector and carbon monoxide detector in working order by replacing the batteries on a regular schedule.

Clogged toilets, bathtubs, sinks, and other drains.

Unreported repair needs that lead to preventable damage, such as:

• Mold: Once again, mold and mildew will grow if given the opportunity. It is your responsibility to prevent mold and mildew and to clean it up at the first sign to avoid costly liability. If you do not kill mold and mildew immediately, it will continue to spread, leading to damage, damage that could have been prevented, therefore making you liable for the repair.
• Rot/damage from leaks: It is your responsibility to report all drippy faucets and pipe leaks within 48 hours. Non-reported leaks lead to damage that could have been prevented, therefore making you liable for the cost to repair the damage.

What is Emergency Maintenance?

An emergency maintenance problem is something that if not taken care of IMMEDIATELY will cause significant damage. Emergencies usually involve water or fire. If it involves fire, call 911.

When is Rent Due?

Rent is always due on the 1st of every month. Rent payments must be paid in full at all times to avoid a late fee. Past balances are considered rent due. For example, if you owe a balance in addition to rent, that amount is due on the 1st. To further break this down, if on June 15th you were billed $41.50 for a routine maintenance repair that you were responsible for, and on July 1st you only paid your regular rent payment, your rent payment would be considered $41.50 short.

Paying Rent on Time is a BIG DEAL. No excuses.

Rent is due on the 1st of each month, and it is solely your responsibility to be sure your rent gets to us in time. You will need to plan ahead to be sure you pay your rent on time. We understand that sometimes you may need a little more time; therefore, we give an additional 5 days’ grace period each month for instances when you cannot pay by the 1st.

If you do not pay your rent by the 5th of the month, this is what to expect:

• On the 6th, $100 will be added to your total due.
• On the 6th, you will be given Eviction Notice, at which time you have 3 days to pay your rent and late fees in full, or you will have to move.
• On the 7th, an additional $5 will begin accruing each day until your rent is paid in full.
• By the 10th, if we have still not received your rent payment and late fees, you will be evicted.

What’s Going to Happen if You Are Late with Rent

• It gets expensive! Plan ahead to avoid costly late fees.
• Eviction will be filed on you immediately.
• When you are evicted, it goes on your permanent record, and it will be extremely difficult to find another home to rent.
• When you are evicted, you are billed for our attorney's costs.
• When you are evicted, you create a substantial monetary judgment against you, which if remains unpaid is sent to a collection agency and affects your credit and credibility.

Policies

Your lease outlines our policies in detail, so please be sure to become familiar with them to avoid a phone call or worse, termination of your tenancy. Below are the policies that we would especially like you to remember.

No Smoking

One of the reasons you were chosen as a tenant is because you do not smoke. We do not allow smoking in any rental or within 20 feet of our buildings. Smoke permeates and damages ceilings, carpets, walls, and floor coverings. You will be held liable for any smoke-related damage within the rental.

No Pets

Pets are not allowed without written approval from the landlord and are subject to additional fees/Pet Rent. If you intend to hide a pet within your unit, please reconsider to avoid causing your own eviction.

Window Coverings

Bed sheets or other similar objects may not be used as curtains or window coverings. Broken blinds must be replaced immediately. If we notice your blinds are broken, we will hire a contractor to install new ones at your expense.

Decks/Balconies

Decks/balconies must remain clear of debris, garbage, bicycles, toys, furniture, tarps, and other clutter. Do not use your balcony as storage or to dry clothes. Decks/balconies are meant for your enjoyment. A barbecue, lawn furniture, and small plants are the only acceptable items. Failure to abide by this policy will result in termination of your tenancy.

Guests

Please limit your guests to 1-3 per day.

Noise Levels

Out of respect for your neighbors, please keep all noise to a minimum. Your neighbors are entitled to the quiet enjoyment of their home at all times.

Parties

Loud parties are not allowed.

Occupancy

Occupancy is limited to ONLY the people we listed on the lease agreement. If you decide to get a roommate after you move in or you have a guest staying for more than 14 consecutive days, you must notify us, and they must fill out an application and go through our approval process. All occupants must meet our screening standards. Keep in mind there is an occupancy limit for the home you rent.

Notice to Vacate

When you decide to move, remember to first take a look at the terms in your rental agreement or lease for how to proceed. If you are on a month-to-month rental agreement, you must give a minimum of 20 days’ written notice before the end of the month. If you have a lease, you must give a minimum of 30 days’ written notice before the expiration of your lease.

We hope this information has helped clarify any questions you may have had. Thank you for your tenancy and we look forward to working with you.