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August 14, 2006
Tenant Problem / Novice Landlord
I have 2 Fairly descent Tenants in my 3 family Brownstone. Impecably kept. Problem is they seem to think it is my responsibility to track them down to get the rent as opposed to them Making sure it is to me on the 1st of each month.
What can I do? The lease agreement has language that states a $50 late fee will be assessed if the rent is received after the 5th of the month. I have yet to enforce that.
On top of this, 1 tenant started with just herself and her young son. NOW, it's her, her young son, and her "gentlman caller" Who now even shares the same checking account?
I have no idea what I should do or can do.
Any advice is Welcomed!!!!
Comments
Did you use the NOLO lease? If so, it contains language forbidding new tenants from moving in without the landlord's approval (unless they are immediate family members).
As for rent, we put an envelope with the date on it under the door on the first of the month. Next time, I'd include a warning that you will begin collecting the late fee if the rent is late again.
Posted by: carrie at August 14, 2006 5:02 PM
Ditto on the late fee. You have to enforce it. Better yet, you have to get the rent on the 1st of the month and never have to enforce it. I think it is the primary rule to get the rent when it is due and you need to tell them where to leave the check. Check the lease regarding the boyfriend, and get to know a good tenant landlord lawyer with whom you can consult on these issues -- not to hit the panic button -- but to understand better your rights. I was told by an experienced landlord when I first bought my building that he was willing to work with tenants on anything but late rent. The first of the month! He also told me that some landlords go to court to record non-payment when rent is 1 day late! It is your responsibility to provide services for your tenant and your right to get your money on time.
Posted by: donatella at August 14, 2006 5:37 PM
You have to be a stronger landlord. What's the point of having a lease if you don't enforce the rules?
Posted by: Rick at August 14, 2006 6:04 PM
You should tell them that you can't chase them down for the rent, and you are going to need to enforce the late fee if they don't deliver the rent to you by the 5th. Print out an invoice a few days before the due date and push it under the door as a reminder. Then enforce the late penalty if the rent is late next month. If they are paid monthly, you might want to change the due date to be a few days after they get paid, but I doubt this is the problem, I think your chasing them down for the payment has made them think this is OK with you. They might even think you like it!
As for the boyfriend, unless he's a problem tenant you can't really do anything except ask that he be added to the lease, if that is what you want. If you started any legal proceedings she could just marry him and stop you cold, but of course this would poison the relationship you have with your tenant so you wouldn't want to do this in the first place. You could just not renew the lease if this is a real problem for you (following all the rules on giving the tenant proper notice, etc).
BTW The NOLO lease provision only allowing immediate family members is illegal and could hurt your chances of forbidding non-family members. You are allowed to house any family member, even a distant one, so long as you don't run afoul of the fire code or some other law. And so long as the tenant isn't charging the person rent your ability to interfere in their personal lives is limited. Your power is basically non-renewal of the lease, but for that you should consult with a lawyer first.
Posted by: danielk at August 14, 2006 6:19 PM
I really think getting the rent on the 1st of the month (and not assuming they are going to be late after the 5th) is crucial. I think you have to be nice but make sure you get it. It's the central rule - if they don't respect that boundary, they don't respect others. And if you don't get your money, you might start slipping up in your department. Get the money when it is due. If you establish that as an unbreakable rule and they know you are serious, everybody will be happy.
Posted by: donatella at August 14, 2006 6:51 PM
I no longer give a traditional one year lease to tenants. I have a 3 family Brownstone. I give a month to month rental agreement. I know it may sound strange and I'm interested to hear what others say about it. In my experience when a tenant needs to break the lease, they will, they tell me and move on. It's as simple as that. If a tenant turns out to be crazy, I want them out! ASAP! So what is the point of a yearly lease? This has worked out well for me and my tenants. They know they can leave when they want to and if they are happy they stay. If I'm not happy with them I can ask them to leave. I have never received a rental check late in 9 years that I've owned the building.
Posted by: Rick at August 14, 2006 8:58 PM
In addition, I must say, I do not have high turn-over in my apartment. Most tenants stay for 2- 3 years. Often leaving because their jobs changes location over time. Very normal for the job market these days.
Posted by: Rick at August 14, 2006 9:12 PM
Rick, I agreee tenants often break a lease.
My response has been not to resort to month to month to month as you have, but rather to write into the lease a clause that allows breaking the lease with sufficient notice (I use three months). The lease further states that if there is less than three months notice, the security deposit is forfeited. This has worked for me and my tenants like it, because it keeps their options open.
Not having a lease leaves me exposed to an empty apartment if I can't rent it in time. That is my concern with month to month.
Posted by: Anonymous at August 14, 2006 9:43 PM
I like the idea of the lease with 3 months notice. I get my tenats to give me one month notice....... However, In this hot rental market, I've never been at risk of having an empty apartment. I started doing month to month out of fear. I've had friends who have had some really bad tenants. Tenants that have mental problems who have stopped paying rent and will not move. It's very hard to get someone out if they have a lease. By the time you go through court system you will have lost a few months rent. So, oddly, I think you have more control over tenants with no yearly lease.
Posted by: Rick at August 15, 2006 7:20 AM
My husband and I own a 4 family townhouse. I understand what you mean about chasing your tenants. Its feels awful to have to constantly ask people for money. However, you have to develop a thicker skin and realize that you are providing them with a nice place and that you also have financial obligations to meet. We are strict enforces of late fees. I have to say that our tenants are pretty good, but they all have this carefree attitude about paything their rent on the 1st. We have gotten into the habit of sending emails out by the 2nd or 3rd of the month if they have not left the rent with my parents, who by the way, live in the building. I have a set of tents that every month pay $100 extra on their rent, they just cann't seem to get it together. I have made it clear that to them while I empathize with what their situation, I have bills that I have to pay, and that I cann't tell my mortgage holder "my tenant is having cash flow problems and they are unable to pay the rent and this is why I cann't pay my mortgage".
If you provide and nice place and respond quickly to their needs, then they should extend the same courtesies and pay your rent at least within the 5 day grace period. You shouldn't feel bad about enforcing the late fee.
Good luck!
Posted by: Anonymous at August 15, 2006 9:30 AM
I agree with the above poster. You need to be a great landlord but insist that the rent is the first bill they pay, it is due on the 1st and be relentlessly consistent. You have to insist and don't feel bad about it. Getting the rent on time is the foundation to your providing the services they expect. Your mortgage company, Con Ed, Keyspan, exterminator don't want to hear about it, so why should you. Get this squared away with your tenants and life will be much easier. Good luck to you too!!!
Posted by: donatella at August 15, 2006 9:54 AM
I give my tenants a financial incentive to pay early. If i receive the rent before the 1st, the tenants get $75 discount. From the 1st to 5th, the rent is as stated on the lease. Anything after the 5th is late with $75 penalty.
Posted by: ItAWrap at August 15, 2006 11:41 AM
Thank you all for the advice. I sent an email today re-enforcing the guidelines about the rent due date. I didn't make mention of the boyfriend. He's actually a good guy that hasn't caused any problems. I guess the fact was just highlighted because its every month that the rent is late. I'm a pretty friendly guy, and I don't want my kindness to be taken as weakness.
But that's it. After the 5th. It's late. No Questions.
And go figure, not ONE troll on this thread!! :-)
Posted by: Anonymous at August 15, 2006 12:24 PM
As a tenant who sometimes is late with the rent, and having been lucky enough to have landlords who have been most understanding, I still have to say you sound like a good landlord who just needs to put his (or her?) foot down. It took me a long time to learn that when you lay out the boundaries from the very beginning, people accept it for what it is.
So far as the boyfriend, they should have asked, but I don't know as there is much else you can do. But he's nice, so you're lucky.
Posted by: jennyanne at August 15, 2006 1:46 PM
You may also want to consider joining the Landlord Protection Agency. Very interesting website that you can spend some time researching/reviewing:
www.thelpa.com
Diego
Posted by: Anonymous at August 15, 2006 2:30 PM
I also offer an incentive to pay early - $25 off before or on the first and $50 penalty after the 5th. Most checks are in our hands but the night before the 1st. Incidentially, it's also a good indicator, because it seems that the few tenants that don't care about the $25 have also been the ones that break leases, make unreasonable demands, etc.
Posted by: Anon at August 15, 2006 2:56 PM
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