All Forum Posts by: Jordan Payne

Late payments are a sign that the tenant is unwilling or unable to meet their agreed to obligations.  And, let's face it, they're not running a few days late - but almost a month late. Most landlords send Notice To Quit for Non-Payment of Rent on Day 5.  

My recommendation would be:

Find out what's causing this great delay.  It's unacceptable.

Consider catching them up by offsetting their security deposit to bring the lease current and then changing their due date to the end of the month (basically they would be paying you early if you do this) - but to accommodate this change, increase the rent by $50.  It will be less than the late fee but additional income for you for tolerating the delinquency and amending the lease.  

If you don't resolve the late payments, you may find that you've set a precedent - one that was acceptable to you - by allowing them to pay late.  That won't play well for you if you have to evict down the road.

As a former banker, late fees are an indication that "it's just a matter of time" before the payments stop. You deserve to be paid on time. You're running a business.  Manage to the lease.  

It really is up to you and you never know how a judge will see things. You have set a precedent by allowing the late rent however if you decide you are done with it, send a letter after the next late payment stating that late payments will no longer be accepted. Then the following month when he doesn't pay on time you send the pay or quit notice, then wait 3 days and file for eviction. This way you have proof ending the precedent and have a stronger argument. In reality it doesnt matter and by the letter of the law you can evict anytime the tenant defaults but like I said, every judge is different so anything you can do to give yourself a stronger position will help when the time comes. But you may get lucky and he just leaves before it gets that far.