Re: Tenant stated that October rent will be late

Re: Tenant stated that October rent will be late by Eric (MN) on October 2, 2011 @19:41

Is the tenant worthwhile? What does Visa do when you have been on-time for a long period and then are late once. They waive the fees.

I generally waive the late fees when a tenant calls on the first, and follows through with the rent on the day they specify - as long as it is a reasonable excuse and not too far off.

You run the risk of setting a bad precedent, or finding a new renter. Evaluate the risk, and your financial position and whether or not it is worth it.

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Re: Tenant stated that October rent will be late by Anonymous on October 2, 2011 @19:53	[ Reply ]

If I waive the fee this time, will that cause problems for me in the future if I need to evict or need to enforce the late fee issue (if it becomes routine that they pay late)? I'm not sure yet whether they are good tenants or not. They've been there 3 months so far. The one issue I've had is that they didn't mow the lawn and I received a warning letter from the county about the lawn height. When I called them they did borrow a lawnmower and mow the lawn.

To clarify, by OP on October 2, 2011 @20:04	[ Reply ]

what I meant was, will it cause me potential problems if I ever have to take the tenant to court in the future for unpaid rent? I.e. could they argue that I waived the late fees in the past so they shouldn't be applied now?

Re: To clarify, by Jake on October 2, 2011 @20:06	[ Reply ]

That is the argument that will be made.

Re: To clarify, by Eric (MN) on October 2, 2011 @20:38	[ Reply ]

What is their credit score and rent to income ratio? If they are sub-600, why do you expect to get paid on-time? If they have less than 3x the rent in income, why do you expect to get paid at all? A reprint ==> LL Tip: Late rents and what they mean A little unconventional wisdom. Your rent is late, should you be concerned? Odds are you have a problem and are headed for an eviction, but here's something to think about. If the tenants credit score is 700+, they are probably just absent minded and need a reminder. Once they get the automated payments set up, or a monthly text from you, you will not have a problem. The anticipated delinquency rate is ~5%. If their credit score is 650 - 699, they may be trying to pull something, and they may be having issues. But odds are, they are probably just a bit sloppy, and disorganized and not much of a reason to be concerned. The delinquency rate can be expected to be ~15%. If their credit score is 600 - 649, they probably are starting to have an issues, and will probably be late a bit more often if there is an issue. They’re at least going to try to keep the rent payments timely, but issues may still result. Keep your eye on them, don’t give them too much slack, and you should be OK. The delinquency rate can be expected to be ~31%. If their credit score is 550 - 599, they are trying to pull a fast one on you. Don’t let them take you for more than the law allows. It may get better, if you still believe in Santa. I bet this is not their first eviction. Odds are, they had slow rent payments right after the first moth. The delinquency rate can be expected to be ~51%. If their credit score is 500 - 549, they are lying and must go. It will not get better from here. If you have a two month’s of a deposit, good for you. Get them out before the deposit is used up. You should have passed on these renters, once you see the damage left behind you will wish you would have. The delinquency rate can be expected to be ~71%. If their credit score is less than 500, you have a fool for a property manager.

scores

Re: Tenant stated that October rent will be late by Jake on October 2, 2011 @20:05	[ Reply ]

For the tenants that follow you should eliminate the grace period unless your state requires one. A grace period gives the tenant the illusion that late payments are actually on time. What you do the first time about a late payment will set the tone for every other payment that is made. Have a pay or quit notice made out. If he shows up without sufficient funds, serve him on the spot. You need to be paid with cash and not excuses.

thanks Jake by OP on October 3, 2011 @07:55	[ Reply ]

When you say "without sufficient funds" does that include if the late fee is missing but the full rent is there on the 7th?

Re: Tenant stated that October rent will be late by Anonymous on October 3, 2011 @03:20	[ Reply ]

If he shows up without the late payment make a point to let him know that you will waive it this time only since it is his first time being late but in the future he will need to pay the late fee as well. Sometimes things happen and 2 days late is not that huge of a deal. Now if he comes up with another excuse on the 7th start to be concerned and issue a p&q notice so he knows you mean business. As for the late fee if you go to court from what I have heard they are usually waived by the judge anyhow so if you go to court odds are you won't see any late payment. I had tenants like yours before and there dates they got paid varied by a few days and I just adjusted and all was fine. If he is a good tenant and keeps the place in shape and doesn't complain alot a day here and there for rent is not that big of a deal.