Rent Collection- Late Payments

[Dominic Jimenez]

Good morning all

I have a section 8 tenant who is behind 2 months with late payments. He informed me he’d be late and would be making a lump sum payment on February 1st. The payment does not cover the two late payments and will not cover his additional monthly payment for February. How should this be paid towards?

Back pay in rent owed is $832. His payment for February will be $700. Rent due for February is $234. Late fees are $200.

Should I take $234 for his February payment and stop the late fees and have the remaining $466 go towards his back pay, outstanding balance of rent owed $366?

Or 

Should I pay $700 towards the back pay of $832 and penalize him again for late payment of February bringing his outstanding balance of rent owed to $566?

[Richard F.]

Aloha,

There was a time when I was managing a lot of almost exclusively low income, subsidized, difficult properties. I came up with the strategy of twice per year eviction filings...the first, around mid to late March (around tax refund time), and second around September/October (well before Christmas spending sprees). We dramatically increased the number of tenants that got caught up with payments (vs. evictions at other times of the year), and the long term tenants tended to improve their on time payments when they knew we would be following through and moving them out, having seen and heard from others in their buildings.

This is the trap you fall into with Section 8 and other subsidized programs. The rent payments are NOT guaranteed, as so many proclaim. Many are responsible for a portion of the rent, and cannot even make that. It is not worth it to start an eviction over a couple $50 or $100 shortages, so you end up playing games and stressing over it. If you complain to the caseworker, there is a risk the tenant will be removed from the program, which means ALL of the rent will not be paid, AND they are still occupying your rental. Now you have plenty of reason to make it worth filing the eviction!

If HUD would just wise up, and come up with the legal language and process to remove their failed tenants, returning the unit to the landlord as it was offered to them, I'm sure there would be far more landlords willing to accept their clients more easily.