Renter can't pay rent this month

[Jose Chavez]

Hello everyone at BP. Recently closed on my first property after looking for a very long time. It's a 3 unit multifamily home. I just wanted to ask everyone if you can give me an idea as to how to handle a situation with a renter. Everything had been moving smoothly with all things then just today had 1 of my renters text me she could not pay the rent on time this month. She asked to pay a unspecified amount at the end of this week and then more by the following week. It's been 3 months of on time payments and now this. Just wanted to see if someone could give me an idea as to how to move forward with this situation. Thanks in advance to everyone. 

[Kathy Henley]

@Jose Chavez Some tenants have financial setbacks now and then - like an unexpected car repair or a medical expense that isn't covered under insurance. The lease agreement tells both parties what would happen if rents are late - late fees and eviction. Read it and prepare your response.

Your tenant came to you with a payment plan. Since it is the first time to happen, give this person a chance to get back on track. Whether you charge the late fee THIS ONE TIME is up to you. You must set the tone of what kind of manager you want to be. 'Dear Tenant, Sorry to hear of your money problem. I can accept your two payments as outlined, but must also charge the late fee. Please pay the late fee when you make your second payment on or before X.'  Give clear expectations. If they cannot perform, you will have a new message about being in violation of the lease and could serve notice that mentions paying up or face eviction. Or continue a bi-weekly payment plan. 

Meanwhile, find out if your state is still taking rental assistance applications for CaresAct money. If so, send link to the program's application to your tenant. In my state, tenants can apply for three months future rents.