New landlord, tenant late on rent. Please help

[Bradley Auclair]

Hello BP community,

I’ve owned my rental since January of this year.

Out of the 4 months that our new tenant has been renting from me, they have been late on the rent 3 times so far. Mostly they pay anywhere from the 8th-14th of the month, but do end up paying a late fee of 10% after the 4th as stated in the lease. Rent is due on the first so this is very frustrating. I don’t want to keep charging a late fee on this tenant but I don’t want to be relaxed about the rent not being paid either.

I was wondering how I should move on with business in this situation, or if anyone has had experience with tenants like these. If so, what did you do about it?

I have considered changing the due date on rent, or coming to some sort of compromise where we can get rent paid in a timely manner.

I’m new to landlording, and I want to do everything as professional and by-the-book as possible. Even though I only own two units, I want to operate my rental in the best interest of its own business.

Please, if you have any insight on this topic, let me know. I appreciate any information in advance.

Thanks

[Theresa Harris]

Keep charging the late fee.  Talk to the tenant and see what the problem is.  Some get paid twice a month and find it easier to do half the rent on the 1st and half on the 15th.  Others might be struggling right now and if that is the case, tell them about the govt rental assistance program for covid.   Others are just late no matter what.

If they keep paying rent late, before the lease is up for renewal, let them know that you won't be renewing the lease.  But if they are paying, just 1-2 weeks late and with the late fee as frustrating as it might be if they are good in all of the other aspects, look at it as you are getting 10% more rent than expected.