3rd late payment in 5 months

[Cherilyn Williams]

I need some suggestions on how to handle a situation with my tenants. This is my first investment property in a C class neighborhood, and I thought I had some good tenants, but there have been 3 late payments for rent in the 5 months they have been leasing my rental.  They signed the lease in March 2024.

The first time they were late it was a couple of days past the 1st but within the 5 day grace period……Ok.

The second time, they notified me on the 5th that they wouldn’t be able to pay until the 12th.  I charged them all the late fees and I was not happy and expressed my concerns, but I did get paid on the 12th.

Now, this 3rd time for this month of August, the boyfriend contacted me a day or two before the 1st and said they would not have the rent until the 9th of August. I told him that I would charge him the same fees as before. $50 late fee after the 5th and $5 fees each day late. 

Today, is the 9th, and I just received a text from the gf asking me if they could pay this Monday the 12th because something is going on with her account for fraud and she has to go to her bank on Monday.  She also asked if I could waive late fees until Monday. Each day like I mentioned is $5.  

I want to respond with something like…

This is becoming a recurring problem and it seems to me like you all are not able to afford my rental.  You have been late with the rent three times in the five months you have been living there.  I am not waiving any late fees.  Perhaps, it is best that we terminate the lease because I can’t continue accepting late payments until the lease is up.  

Also, let’s say they are late with the rent every month until the lease expires, but they pay.  Would you get them out of there when the lease expires?  TIA.

[Eric Gerakos]

This is why I never buy C class properties. More headaches than I’m willing to deal with. They are cheap for a reason.