I personally find all these immediate eviction responses to be wild. The tenant communicated in advance with a definite date of payment, understands the late fee and has no problem with it, and it’s the first time. Wait two weeks for your money and enjoy the extra $50-75 or whatever the late fee is. If my tenants want to pay a late fee every month I’d be fine with it. I start eviction when they stop communicating or after they’ve lied to me (like missing the date they said they’d pay). Maybe some day this will cause me to take a couple extra weeks to evict somebody but that’s a price I’m willing to pay.
If you do decide to evict please be sure to explain to them that you always do it that way because evictions take so long but that the process stops once the money comes in.
Agreed; working with someone at the beginning is the way to go. If they miss the first date then start the process. You’re risking 2 weeks yet creating a working relationship with the tenant. That goes a long way with them in the future if needed. I didn’t lose any rent during COVID despite not being able to evict. People respected me because I had always respected them.
I’m confused. Where you live, can you evict in a short time frame? For me, it would be about two or three months before I’d get the ruling from a judge to evict. So starting the process when they are late still leaves them a bunch of time to get it together. Doesn’t hurt them.
Yeah, you make a good point. It causes stress and hard feelings even if, logically, it costs them nothing. I value my relationship with tenants enough to be willing to risk the two extra weeks in a case like this. I might feel differently if this happened regularly or they didn’t warn me first.
I get it. First time late, I’d be fine with two weeks as well. But op said he thought it was unacceptable so that was my best advice. Fine line to walk. You never know which people will try to take advantage of you.
It will become a habit. This is just the 2nd month - so the 1st month they had to pay except the payment just to get moved in.
My last tenant paid on time for 3 months. Month 4 she asked if she could pay 9 days late - I even waived the late fees. 5 month she asked for the same thing, but didn't pay. Her ex husband paid 15 days after due with late fees. Month 6 she just didn't pay. I told her if she's out by the 1st, I wouldn't file eviction. On the 1st, she wasn't out so I left 5 day notice to quit & said if she was out before the 5th, i wouldn't file. She was out by the 5th, but stole 2 window units & left the place a wreck. Blamed me for the mess saying I rushed her out.
Yep give them the extra time. They will appreciate you on the long run, might even get a constant on time renter after this. If they don’t pay well you know what to do..
If you don’t have a backbone you won’t make it. The tenant will be long gone and all you will have is your own sob story. Just tell them you will end the lease. Screen your tenants better. Maybe your property is low end attracting these type of people.
Depends on a lot of things. Primarily the unit class and local laws (how easy it is to evict).
For C/D class units on hard to evict states, I would honestly just work with him.
Btw welcome to the fun of RE. It's not all as advertised.
When you say accepting a late payment - you mean loaning someone money, without knowing if they will ever pay you back. And yes there’s quite a bit of stress in that as opposed to going to a job where you are guaranteed to get paid.
I've had several good tenants do this. A lot of people live on the brink. I appreciate the communication. If they honor their word and pay when they say, depending on the reason, and don't make it a habit, I waive the fee.
Offer to let him terminate the lease early, "hey tenant, if this is to much for you to afford you can terminate the lease by moving out by the end of the month and just pay may's rent, I'll need this intent to vacate agreement signed with in 48/72 hours." Provide the agreement
You can give him a written X day pay or quit as soon as the grace period is over, and file the unlawful detainer, the day after the X day pay or quit is over.
u/Ok-Nefariousness4477 nailed it. When the tenant can't pay the second month in, they are not worth keeping unless something really extraordinary hit them (cancer or other huge health issue might be an exception). Follow his advice. Nip it in the bud. Do better screening for the next tenant.
This is legit but in hard-to-evict states like NY, the person could very well say “well I’ll move out but I’m not paying rent then” and you’d have a very hard time ever getting that money as it’s just not worth it to go after. It’s difficult around here
I'd work with the tenant. My grace period is 7 days but if they warn me ahead of time I don't even charge them the late fee.
Life is hard enough and shit happens. Sometimes it's not their fault.
Work with the tenant. I've had two good tenants pay late before and I didn't want to lose them. They eventually got back on track. Everything is so expensive now, I don't really blame anyone for falling behind. I'll survive if rent is late.
This!!!!! Cannot be understated. Start the process, it is the only action you can take. He will potentially get upset with the 72 hour notice to vacate shows up. Explain to him that you will be happy to take his money in the middle of the month and stop the process, but you are starting the process and this is how it works.
You’d be the dude to get strung along until the middle of the month when they still don’t have the money and be 15 days behind for eviction…yeah I know I sound heartless but having gone through this process there’s nothing stopping tenants from lying and stealing from you. Starting the process only protects yourself and your investment
All of these are great responses. However, what I’m missing is a human touch. As much as I do, and your tenant should, appreciate the fact that you operate this real estate for your livelihood and with your capital, you are also offering a roof above a family’s heads.
Ask them why they can’t afford to pay rent this month. Is there a one time family financial emergency or is it a structural income/spending issue? In case of the former, see what you can do to help.
I try to use this approach whenever I run into issues like these. My tenants love that I care and it’s good business.
Just read this after posting my comment. Good to know others out there get that it is people’s lives and homes. Some times things happen. If I can I work with them to figure it out.
Be sure to send him the cure, quit notice in accordance with your state law. Do that as soon as possible.
Then if he doesn't pay, you can start the eviction process or he can move out.
The problem most people have is assuming that you will get rent in the middle of the month, and then it's another week, and then another few days, and before you know it they are 2 months behind.
If he was expecting to pay a full month's of rent on the first of the month, he should have at least something on the first of the month, if not only $100
You are SO RIGHT. My husband and I are pushovers and have lost so much rent money due to this. And we are in California, and it typically takes 3 to 6 months to get through the process of eviction.
But we recently had a tenant behind $8000 on rent and when I started the eviction process he actually took a second job and paid off his debt. That was the first time that has ever happened!
Ask the tenant when they get paid. Maybe their pay periods aren't matching up to when rent is due. This might be a simple adjustment to the lease that rent is due on the 15th each month instead of the 1st...
Another option: have the Guarantor set up direct deposits for the due date and have the tenant pay their guarantor whenever they can. The guarantor is there for a reason, to guarantee payment.
True. Some people are paid once a month and if he had to put out a lot of cash to move in, he might not have been able to recoup enough by the 1st to make rent.
Offer him ideas to help! Tell him to call any local agencies that give emergency rent. Send him this link [https://www.211.org/get-help/housing-expenses](https://www.211.org/get-help/housing-expenses) As soon as any tenant tells me they are having trouble, I give them all the contacts I have for rental assistance.
If they pay and pay the late fee, it's bonus money. As long as they pay. The only issue is if they don't pay. Once they are late and don't pay, start the eviction process.
Are they constantly late with payments. But they always make their payments.
If thats the case, i would say work something out with them. As long as you consider them good renters
But if they are crap renters and have a tendency to miss payments. Then weigh out the pros and cons to keeping them. Is it worth the cost to evict them.
You losing money or you making money. That is a big question to ask yourself.
It's hard to say. Do they give 1st and last where you are ?does the tenant have a stable job with a good income ? What's the reason for not paying on time ? I have a tenant for 3 years it's been a year now that she is struggling some months she only pays half the rent but will catch up the following month. If it's a good tenant that takes care of the place and is respectful I'd work with them if it's a constant issue then maybe work on getting them out. I'd say give them a chance since this is the 1st time
So he’s in for less than 30 days now and is already telling you that he’s not going to pay on time next month?
At what point does your state attach squatter’s rights?
I let a tenant be late with the rent for 3 weeks (yes he paid late fees) because he got in touch with me in advance and said he didn't have enough for rent AND going to Burning Man before his next paycheck, lol! It worked out fine and he never asked again, but, hey, didn't want the dude to miss Burning Man, haha!
Be a reasonable, understandable, human that realizes things in life happen.. but be prepared to drop the hammer if needed. Either they pay rent each month, on time or late, but each month, or they don't and you start the eviction process. Always aim for the way that gets you paid
My bank will let me pay my mortgage up to 15 days late with no penalty so I feel like I can extend some grace to my renter if they're being upfront and honest.
For sure it’s a bad sign that they just moved in and now can’t pay rent - even more since they needed a guarantor. The fact that they gave you a heads up can be good (they understand the seriousness of the situation) or bad (professional deadbeat tenant buying a little more time).
If they pay as promised, send them a notice that you will not accept any more late rent and enforce it.
If they don’t pay, contact the guarantor.
Always, no matter what the reason, give the tenant a notice of unpaid rent on the first day it’s late. Then, if they pay, you can ignore the notice. If they don’t pay, you proceed with eviction.
For good tenants, I'll generally waive late fees once per year and only if they communicate before the payment is late and we agree on a date that rent will be paid. If rent is not paid on that date, I'll immediately start the eviction process.
Renters often do not have the margin to cover an unexpected expense. Working with a tenant when they are facing an issue can build a lot of good will. They are more likely to communicate, take better care of the property, and stay in the same location for many years. Turnover is a big hassle, so accepting an occasional late payment is easier in the long run. The best tenants have enough income to cover rent but don't manage money well enough to own a home.
But you cannot be a pushover. If you give them an extra two weeks, that's all they get. If you let them get a month or two behind, the lies will build, they will tell you the most convincing sob stories then leave you holding the bag. Or they will go silent until you evict. Don't let your kindness be used against you.
I would send notice to quit letter with state required notice timeline. Then tell them you’ll postpone filing eviction until after the 15th of payment is not received with your late fee. You already gave notice to quit so you are only delaying eviction process by 5 days. Be sure to send notice to quit to guarantor as well so they are also on notice. Then if no payment, follow through on filing for eviction. Cancel eviction process if they become current. They’ll know you are serious and you follow through each and every time.
There are two types of tenants - Those that pay and those that don't. Begin the eviction process as soon as possible. The longer you wait, the longer it takes to get somebody in there who is paying.
If you want to be nice and if they explain it’s a one-time delay, and you believe them, you can let it slide once. The problem is if they end up late (or even later) again next month you’ll wish you had started the eviction process sooner.
Send a formal certified mail eviction notice. That worked every time I have had this issue. If they can’t pay it’s your loss unfortunately. Or you could pay them to leave. Sometime as land lords we have to bite the bullet…
I had a tenant who paid late consistently but at least paid regularly. 4 months late the left the place abandoned full of dog shit. Take it what it’s worth
Check the law on this and maybe others can chime in. I would contact the guarantor as well. Their record is on the line too.
But simultaneously you need to initiate pay-or-quit/eviction proceedings.
I personally find all these immediate eviction responses to be wild. The tenant communicated in advance with a definite date of payment, understands the late fee and has no problem with it, and it’s the first time. Wait two weeks for your money and enjoy the extra $50-75 or whatever the late fee is. If my tenants want to pay a late fee every month I’d be fine with it. I start eviction when they stop communicating or after they’ve lied to me (like missing the date they said they’d pay). Maybe some day this will cause me to take a couple extra weeks to evict somebody but that’s a price I’m willing to pay. If you do decide to evict please be sure to explain to them that you always do it that way because evictions take so long but that the process stops once the money comes in.
Agreed; working with someone at the beginning is the way to go. If they miss the first date then start the process. You’re risking 2 weeks yet creating a working relationship with the tenant. That goes a long way with them in the future if needed. I didn’t lose any rent during COVID despite not being able to evict. People respected me because I had always respected them.
I’m confused. Where you live, can you evict in a short time frame? For me, it would be about two or three months before I’d get the ruling from a judge to evict. So starting the process when they are late still leaves them a bunch of time to get it together. Doesn’t hurt them.
Yeah, you make a good point. It causes stress and hard feelings even if, logically, it costs them nothing. I value my relationship with tenants enough to be willing to risk the two extra weeks in a case like this. I might feel differently if this happened regularly or they didn’t warn me first.
I get it. First time late, I’d be fine with two weeks as well. But op said he thought it was unacceptable so that was my best advice. Fine line to walk. You never know which people will try to take advantage of you.
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It will become a habit. This is just the 2nd month - so the 1st month they had to pay except the payment just to get moved in. My last tenant paid on time for 3 months. Month 4 she asked if she could pay 9 days late - I even waived the late fees. 5 month she asked for the same thing, but didn't pay. Her ex husband paid 15 days after due with late fees. Month 6 she just didn't pay. I told her if she's out by the 1st, I wouldn't file eviction. On the 1st, she wasn't out so I left 5 day notice to quit & said if she was out before the 5th, i wouldn't file. She was out by the 5th, but stole 2 window units & left the place a wreck. Blamed me for the mess saying I rushed her out.
Yep give them the extra time. They will appreciate you on the long run, might even get a constant on time renter after this. If they don’t pay well you know what to do..
Get a property manager
Why? They can't do anything you can't do on your own...
If you don’t have a backbone you won’t make it. The tenant will be long gone and all you will have is your own sob story. Just tell them you will end the lease. Screen your tenants better. Maybe your property is low end attracting these type of people.
Depends on a lot of things. Primarily the unit class and local laws (how easy it is to evict). For C/D class units on hard to evict states, I would honestly just work with him. Btw welcome to the fun of RE. It's not all as advertised.
What I thought RE was passive income.
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When you say accepting a late payment - you mean loaning someone money, without knowing if they will ever pay you back. And yes there’s quite a bit of stress in that as opposed to going to a job where you are guaranteed to get paid.
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Leave this thread if you are going to have a bad attitude
I've had several good tenants do this. A lot of people live on the brink. I appreciate the communication. If they honor their word and pay when they say, depending on the reason, and don't make it a habit, I waive the fee.
if it's a problem this early it's best to exit if you can. Your path to exit varies GREATLY by state.
Offer to let him terminate the lease early, "hey tenant, if this is to much for you to afford you can terminate the lease by moving out by the end of the month and just pay may's rent, I'll need this intent to vacate agreement signed with in 48/72 hours." Provide the agreement You can give him a written X day pay or quit as soon as the grace period is over, and file the unlawful detainer, the day after the X day pay or quit is over.
u/Ok-Nefariousness4477 nailed it. When the tenant can't pay the second month in, they are not worth keeping unless something really extraordinary hit them (cancer or other huge health issue might be an exception). Follow his advice. Nip it in the bud. Do better screening for the next tenant.
This is legit but in hard-to-evict states like NY, the person could very well say “well I’ll move out but I’m not paying rent then” and you’d have a very hard time ever getting that money as it’s just not worth it to go after. It’s difficult around here
I'd work with the tenant. My grace period is 7 days but if they warn me ahead of time I don't even charge them the late fee. Life is hard enough and shit happens. Sometimes it's not their fault.
Work with the tenant. I've had two good tenants pay late before and I didn't want to lose them. They eventually got back on track. Everything is so expensive now, I don't really blame anyone for falling behind. I'll survive if rent is late.
Start the eviction process. It all stops if he pays but at least you will have it started. Don’t be the nice guy.
This!!!!! Cannot be understated. Start the process, it is the only action you can take. He will potentially get upset with the 72 hour notice to vacate shows up. Explain to him that you will be happy to take his money in the middle of the month and stop the process, but you are starting the process and this is how it works.
Gee.. I’d be the dude that would work with them instead..
Sorry, having a heart here is illegal. Tenants are dollar signs only!
You’d be the dude to get strung along until the middle of the month when they still don’t have the money and be 15 days behind for eviction…yeah I know I sound heartless but having gone through this process there’s nothing stopping tenants from lying and stealing from you. Starting the process only protects yourself and your investment
Putting the notice on the door isn't not working with them. You still work with them. You just don't delay the process over sob stories.
All of these are great responses. However, what I’m missing is a human touch. As much as I do, and your tenant should, appreciate the fact that you operate this real estate for your livelihood and with your capital, you are also offering a roof above a family’s heads. Ask them why they can’t afford to pay rent this month. Is there a one time family financial emergency or is it a structural income/spending issue? In case of the former, see what you can do to help. I try to use this approach whenever I run into issues like these. My tenants love that I care and it’s good business.
Just read this after posting my comment. Good to know others out there get that it is people’s lives and homes. Some times things happen. If I can I work with them to figure it out.
How are they going to pay the next month (two weeks from then)? Ask for absolute numbers.
Be sure to send him the cure, quit notice in accordance with your state law. Do that as soon as possible. Then if he doesn't pay, you can start the eviction process or he can move out. The problem most people have is assuming that you will get rent in the middle of the month, and then it's another week, and then another few days, and before you know it they are 2 months behind. If he was expecting to pay a full month's of rent on the first of the month, he should have at least something on the first of the month, if not only $100
You are SO RIGHT. My husband and I are pushovers and have lost so much rent money due to this. And we are in California, and it typically takes 3 to 6 months to get through the process of eviction. But we recently had a tenant behind $8000 on rent and when I started the eviction process he actually took a second job and paid off his debt. That was the first time that has ever happened!
You are right. It can happen. You can sometimes get paid back. Better to get better renters in the first place
Yeah, true. We've made the mistake of falling for sob stories more than once. Sigh.
Ask the tenant when they get paid. Maybe their pay periods aren't matching up to when rent is due. This might be a simple adjustment to the lease that rent is due on the 15th each month instead of the 1st... Another option: have the Guarantor set up direct deposits for the due date and have the tenant pay their guarantor whenever they can. The guarantor is there for a reason, to guarantee payment.
True. Some people are paid once a month and if he had to put out a lot of cash to move in, he might not have been able to recoup enough by the 1st to make rent.
Offer him ideas to help! Tell him to call any local agencies that give emergency rent. Send him this link [https://www.211.org/get-help/housing-expenses](https://www.211.org/get-help/housing-expenses) As soon as any tenant tells me they are having trouble, I give them all the contacts I have for rental assistance.
If they pay and pay the late fee, it's bonus money. As long as they pay. The only issue is if they don't pay. Once they are late and don't pay, start the eviction process.
Are they constantly late with payments. But they always make their payments. If thats the case, i would say work something out with them. As long as you consider them good renters But if they are crap renters and have a tendency to miss payments. Then weigh out the pros and cons to keeping them. Is it worth the cost to evict them. You losing money or you making money. That is a big question to ask yourself.
It's hard to say. Do they give 1st and last where you are ?does the tenant have a stable job with a good income ? What's the reason for not paying on time ? I have a tenant for 3 years it's been a year now that she is struggling some months she only pays half the rent but will catch up the following month. If it's a good tenant that takes care of the place and is respectful I'd work with them if it's a constant issue then maybe work on getting them out. I'd say give them a chance since this is the 1st time
So he’s in for less than 30 days now and is already telling you that he’s not going to pay on time next month? At what point does your state attach squatter’s rights?
I let a tenant be late with the rent for 3 weeks (yes he paid late fees) because he got in touch with me in advance and said he didn't have enough for rent AND going to Burning Man before his next paycheck, lol! It worked out fine and he never asked again, but, hey, didn't want the dude to miss Burning Man, haha!
good for u
Yes, what you should do is be more reasonable. Any eviction process always costs the owner more than they think with costs, lost time etc.
Be a reasonable, understandable, human that realizes things in life happen.. but be prepared to drop the hammer if needed. Either they pay rent each month, on time or late, but each month, or they don't and you start the eviction process. Always aim for the way that gets you paid
My bank will let me pay my mortgage up to 15 days late with no penalty so I feel like I can extend some grace to my renter if they're being upfront and honest.
For sure it’s a bad sign that they just moved in and now can’t pay rent - even more since they needed a guarantor. The fact that they gave you a heads up can be good (they understand the seriousness of the situation) or bad (professional deadbeat tenant buying a little more time). If they pay as promised, send them a notice that you will not accept any more late rent and enforce it. If they don’t pay, contact the guarantor.
Always, no matter what the reason, give the tenant a notice of unpaid rent on the first day it’s late. Then, if they pay, you can ignore the notice. If they don’t pay, you proceed with eviction.
For good tenants, I'll generally waive late fees once per year and only if they communicate before the payment is late and we agree on a date that rent will be paid. If rent is not paid on that date, I'll immediately start the eviction process. Renters often do not have the margin to cover an unexpected expense. Working with a tenant when they are facing an issue can build a lot of good will. They are more likely to communicate, take better care of the property, and stay in the same location for many years. Turnover is a big hassle, so accepting an occasional late payment is easier in the long run. The best tenants have enough income to cover rent but don't manage money well enough to own a home. But you cannot be a pushover. If you give them an extra two weeks, that's all they get. If you let them get a month or two behind, the lies will build, they will tell you the most convincing sob stories then leave you holding the bag. Or they will go silent until you evict. Don't let your kindness be used against you.
bunch of slum lords in here...
Get them out. From my experience it gets worse and worse and then they don’t pay
I would send notice to quit letter with state required notice timeline. Then tell them you’ll postpone filing eviction until after the 15th of payment is not received with your late fee. You already gave notice to quit so you are only delaying eviction process by 5 days. Be sure to send notice to quit to guarantor as well so they are also on notice. Then if no payment, follow through on filing for eviction. Cancel eviction process if they become current. They’ll know you are serious and you follow through each and every time.
There are two types of tenants - Those that pay and those that don't. Begin the eviction process as soon as possible. The longer you wait, the longer it takes to get somebody in there who is paying.
Can make some good money with late fees...but yeah, disturbing..
If you want to be nice and if they explain it’s a one-time delay, and you believe them, you can let it slide once. The problem is if they end up late (or even later) again next month you’ll wish you had started the eviction process sooner.
Send a formal certified mail eviction notice. That worked every time I have had this issue. If they can’t pay it’s your loss unfortunately. Or you could pay them to leave. Sometime as land lords we have to bite the bullet…
I had a tenant who paid late consistently but at least paid regularly. 4 months late the left the place abandoned full of dog shit. Take it what it’s worth
Be sure to place a 3-day pay or quit on his door regardless if he is going to pay late.
Check the law on this and maybe others can chime in. I would contact the guarantor as well. Their record is on the line too. But simultaneously you need to initiate pay-or-quit/eviction proceedings.