Re: When is the rent officially late with grace period

Re: When is the rent officially late with grace period by Stephen (WA - Washington) on February 7, 2015 @13:28

As I read the original question and discussion I see several items:
- how common are 'grace periods'?
- what action do we LLs take when the payment is during the 'grace period'?
- how do we report to future LLs when rent is after the due date but within the 'grace period"?

Here are my comments.
- how common are 'grace periods'?
I have a grace period through the 5th of the month. Other LLs I have spoken with locally also do this. I don't know how common it is nation-wide but it may be more of a regional thing. I typically have all payments by the 4th with some having arrived prior to the 1st. I view the grace period as taking into consideration the situation where the tenant receives his/her pay on the last day of the month or even the 1st of the month. They then need to deposit it into their bank. They can't write a check and mail it to arrive by the 1st unless they write the check before they have the money - and then hope that my cashing their check will be after their deposit.

- what action do we LLs take when the payment is during the 'grace period'?
I count the payment as on time when received by the 5th. I do not take Katiekate's action of posting a pay or quit on the 2nd. She says that helps when you file for eviction. I suspect that the difference between us is the behavior we have gotten from tenants. I have never filed for eviction (although I should have in at least one case). So, for me, the trouble of filing a pay or quit during the grace period has not been worthwhile. I strongly believe that Katiekate has had the opposite experience. This makes me feel lucky.

- how do we report to future LLs when rent is received after the due date but within the 'grace period"?
As mentioned above, I count and report the payment as on time if received during the grace period.

So, NJLL what is your goal and what behaviors are you getting from your tenants? My goal is to receive the rents in the 1st week of the month. The late fees are to encourage this behavior. The due dates of my mortgage payments were set up to take into account that my rents wouldn't be deposited until the end of the 1st week. My tenants have typically met those requirements. I don't recall ever receiving late fees two months in a row from the same tenant.

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Re: When is the rent officially late with grace period by Katiekate (New York) on February 7, 2015 @13:33	[ Reply ]

While I was managing property for others...it was far too common to proceed to eviction. Also, when I allowed my son to pick tenants for me it was very common. Now I have college kids. Mom and Dad are paying and those problems have gone away. But...my advice is based on my experience with the general public. Not my current situation.

Re: When is the rent officially late with grace period by Oli (MD) on April 9, 2016 @14:40	[ Reply ]

Well said. Very reasonable and makes sense. Your credit card, loan payments and mortgage are not considered late until after the grace period where you then incur the late fee. I don't see why landlords that offers grace periods should be any different.

Re: When is the rent officially late with grace period - Landlord Forum thread 330774