All Forum Posts by: Dan N.

Hi @Account Closed , I believe I can amend the lease if the tenant agrees (and she would like it to be clarified on this point). I have waived the late fee since she paid promptly today (1 day late). Fortunately, my business model is not contingent on collecting fees.

@Brian Levredge , I appreciate your perspective.

@Patrick L.

I see what you're saying, but she has been paying to the bank for the last several months without issue. In fact, I gave this tenant the option of a P.O. Box, which I also checked before sending a "late payment" email. I did get one check that way since I got rid of the property manager.

Another tenant previously was required to drop her payment directly at the property manager's across town. She was thrilled to have the option of several more convenient bank branches.

The tenant herself does not dispute what the payment method is. Only when/whether late fees ever apply for that payment method. In any case, I plan to amend the lease to clarify this confusion.

Postmarks also don't help on days where the post office doesn't deliver. (For example, a Sunday followed by a holiday Monday).

Thanks for providing those specific resources and for your perspective.

My copy of Google didn't one either, Greg H.

@Nicole W. I plan to amend the lease to remove that clause.

The cash-on-cash returns that Lifestyles quotes are definitely based on positive cash flow on leveraged properties, not on appreciation. Of course, realistic cash flow levels vary by market. Of course, real estate has tax advantages that 401ks do not.

Thanks for the replies, all!

The tenant has pointed to a clause in the lease which says "...postmarked by the third of the month..." which she says doesn't make sense in the context of a direct deposit. This is language left over from the property manager that I must not have caught when I took over. I will work on amending that out of the lease.

For the record, the tenant arranges the deposit, not me. I can see how late fees could be problematic if I debited the tenant's account. This tenant and her family have been in the house about 2.5 years. This is the first late payment I've seen (or heard of) from her in that time. She claims an out-of-state death in the family and I have no reason to disbelieve her.

Thanks for your quick replies!

Dan

Hi BP,

This month I have had my first late rent (two tenants, actually). I sent a firm reminder email right after midnight asking if everything was OK and summarizing the lease's late fee schedule.

This morning, one tenant responded:

Some background: A property manager put this tenant in place over 2 years ago. The lease was renewed after the original lease expired. After renewal, I decided to start managing the property myself. I gave the tenant bank direct deposit info to pay rent directly into the bank so I didn't have to deal with postage (or hopefully bounced checks). I can't find my notice where I informed them of the new payment method

I reviewed the Texas Property Code Sec. 92.019 governing late fees and I don't see anything relevant. http://www.statutes.legis.state.tx.us/SOTWDocs/PR/htm/PR.92.htm

Can anyone suggest a reason why this might be valid? I will be asking for clarification about why the tenant thinks this and I will consult my attorney, if needed to clarify.

Thanks in advance,

Dan

I've used Chris Nowling from Apex Inspections twice and have been quite pleased.

Welcome! Round Rock, here. I have SFRs in RR and San Antonio.

I believe I have see this also called the "option fee." You have the option to terminate the contract without losing earnest money within x number of days (up to 10). You only lose the option fee. Otherwise, it's credited at closing. I haven't heard it called the due diligence fee before.

HTH.

Hi Joel,

IANAL (I am not a lawyer), but you can buy a lease from: http://www.uslegalforms.com (recommended by Dave Ramsey). I believe I downloaded the full Texas package. I never used it as the situation changed before I needed it.

LegalZoom.com - Haven't used and I don't remember why I knew this name.

I'm a member of a real estate investing group which created the last lease I used.

I had a realtor offer me a blank form, but it says on it that it's not to be used by non-Realtors.

As always, it's probably prudent to have an attorney review whichever one you pick. Or you could hire them to draw one up.

I also found it helpful to read up on landlord tenant and fair housing laws:

https://www.oag.state.tx.us/consumer/tenants.shtml

http://recenter.tamu.edu/pdf/866.pdf

http://guides.sll.texas.gov/landlord-tenant-law

There are specialized books by Nolo press. I found one at Half-price books.

Good luck!

Dan