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Re: What can we do if tenants don't pay rent?
by M-bone (aka Monica)
on January 17, 2009 @13:07
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Does your State and/or local laws require that you give a grace period? If not, don't do it. All that does is change the due date without consequences to the renters. If tenants do not pay their rent by the due date or grace period date (if you offer it) all you can do is begin eviction proceedings, follow through with a second cause of action suit for a money judgment. The judgment should automatically show on their credit report. You can turn them over to a collection agency as long as you have a court judgment against them. A $50.00 late fee is pretty minimal, is the rent at or around the $500.00 range?
Also, check your laws regarding the late fee, some States cap what you are allowed to charge.
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M-bone, you are very experienced.
by Dave (AZ)
on January 17, 2009 @13:31
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Yes, I will take that grace period off. My rent is $1300 plus $25 city tax. and $25 HOA.
Perhaps I need to increase to $100 late fee. I will check the law regarding the late fee. This is only to deter his thinking about late payment due to his high debt and low credit score. I hope I don't need to go thru this step.
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Re: M-bone, you are very experienced.
by M-bone (aka Monica)
on January 17, 2009 @16:34
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I would seriously if law allows, make your late fee $100.00 that sends a very clear message that you want the rent paid on time, no bones about it. A $50.00 late fee, tenants wouldn't feel the pain enough to discourage future late payments.
And don't forget at lease signing reiterate and say it again late fees will apply when rent is received late. If you don't take a stand initially, they will view you as a push over and will most definantly push you over when they test you the first time they try to pay late without the late fee.
If you accept rent without the late fee one time, that's the end of it, you will never get your rent on time and you will likely not ever be able to enforce the late payment fee in the future. Always make yourself clear from the getgo, to avoid potential problems. Practice saying in front of a mirror "I enforce all parts of my lease especially late fees. I will not accept late rent without the late fee". Do that until you feel completely comfortable with it. Trust me it's not hard to keep the ball in your court, much harder to get it back once you lose it.
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