Late Rent Payment- Three steps to timely payment

By
Real Estate Agent with BANCROFT REALTY LLC 0637667

 

Your tenant has a late rent payment.

Late rent payment can put you in a financial bind.  The best solution is to have a plan before the situation happens.  We have a three step process for dealing with late rent payments.  It centers on our lease and execution of it.  Rental property is our business and we treat it as such.  Here is how you can deal with late rent payments.

Step 1- Make your tenant aware of the process

Our lease is very specific on when and where rent is due.  It spells out when and the amounts of late charges.  The first late charge of $100 is assessed 4 days after the rent is due.  An additional late charge $25 is assessed each day at 11:59 p.m.  That gives the tenant all day to get the payment to us.  We go over our process when the lease is signed.

Step 2 – Send a notification of late charges

When we have a late rent payment, we send the tenant an e-mail notice of the delinquency.  The e-mail is sent the next morning after the due date.  We quote the section of the lease pertaining to late fees to remind the tenant of the process. Most times tenants respond and the process ends here.  If they get the rent to us before the 4th day of delinquency, they are not assessed a late fee.

Step 3 – Send 3-day notice to vacate

If after 4 days we still have a late rent payment, we report the late rent payment to the credit bureau. We also send the tenant a 3-day notice to vacate.  The notice is sent via certified mail return receipt.  The letter states their obligation and amounts due for rent and late fees.  At this point, the tenant knows we are serious and the rent payment is made.  It is a very rare circumstance that the process escalates.  If we have to move past this point, we already have the eviction process in motion.

Treat your rental property as a business.   You do not live for free and neither do your tenants.  When you have a late rent payment, your personal finances are impacted.  Have a system and stick with it.

Like us on Facebook to get more tips on running your real estate business.  See Collecting Rent- Three rules you must follow for the rent collection process. 

 

Published at http://blog.jodywallrealtor.com/business/property-management/late-rent-payment.html

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Rainmaker
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Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Jody Wall I am glad to see that even though we are in Texas, you didn't use the "shotgun" step

Sep 17, 2016 12:57 PM #1
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

You are a good property manager. Your clients  are lucky to be working with you.

Sep 17, 2016 09:08 PM #2
Rainmaker
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Great advice for landlords and Realtors who handle rentals, Jody.

Sep 17, 2016 09:50 PM #3
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Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

We have lots of rental property and you have to stay on of those tenants that are lazy paying. It can get out of hand in short order.

Sep 20, 2016 11:34 PM #4
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Jody Wall

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