Late Rent Notice
I need some advice on an awkward situation that has come up with our current tenants. Over the course of the last 1.5 years our tenants have often paid their rent late. Usually, this is no more than 3 or 4 days, but on occasion it has been over a week late (they do incur…
I need some advice on an awkward situation that has come up with our current tenants. Over the course of the last 1.5 years our tenants have often paid their rent late. Usually, this is no more than 3 or 4 days, but on occasion it has been over a week late (they do incur a penalty if the rent is more than 7 days late, but this is not what the issue is about.)
We have asked the tenants to let us know on the due date if they will be late with the rent. We live in a two family house and so are paying the typical costs of a residing landlord. Our request for them to give us a heads up is only so that we can make the necessary arrangements to cover the short-term decreased cash flow. However, our tenants feel that they are not obligated to do this given that the lease does not state that they are to communicate with us if the rent will be late. Aside from how we feel about this argument, we have decided to honor their preference and amend the future rental agreement accordingly.
So my question is what kind of clause would you recommend that we include in the lease to ask them to communicate with us on the due date if they will be late. Does anyone have a similar clause in their lease with their tenants/landlords? Or should we take a different angle and enforce stricter late rent penalties to avoid the issue all together? Thanks for any and all advice.
the simple thing to do is move the due date. i did this with my tenant who would also be late (only by a few days). The new due date is just three days earlier. If they are five days late, it’s still early enough for me to manage my cash flow just fine and still impose a penalty if I need to.
Avoid the back and forth with your tenant. Restart their lease on a new date and move the due date for the payment. Problem solved.
As a renter… I hate to write this… but Don’t Renew their lease. OR, renew it for 5 months to let them know they are on notice. If they are late, move on to a new tenant and kick these sad sacks to the curb! 🙂
If they are on-time for those next 4 months, then renew their lease with NO grace period. $200 or 10% or whatever penalty on the 2nd of the month — send then an invoice for that penalty in writing.
Just gotta be a little tough.
Two points:
1. Most renters will consider the end of the grace period to be the due date. So much for “grace periods,” huh… But I remember when money was tight for me I’d be juggling things like “my paycheck will clear on the 4th so I won’t mail my rent check until the afternoon of the 2nd…”. Point is, if they don’t get a late fee until the 7th, then as far as they are concerned their “due” date is the 7th. Charge a late fee on the 5th or 4th or even 2nd if you want to get money sooner.
2. Adjust your finances so that getting the rent a little late (or even not getting it at all) won’t cause you any short term problems. Don’t leave yourself vulnerable like that.
If you’re stressing out over conflicts w/ then tenant then don’t renew and find a new tenant you’re comfortable with.
On the other hand, my mortgage is due on the 1st, and there’s no penalty if the bank gets paid by the 9th, so my payment is on autopilot for the 9th of every month. I’m happy if I get paid from a tenant around the 1st and no later than the 7th. If your cash flow is thrown off by a payment a couple of days after the 1st you’re cutting your finances too close.
I’m with Ringo on this one. You can have a non-paying tenant who would drag you through the court system.
I have to mail my rent to Las Vegas.
ha
I agree with all other posters: if it bothers you this much, then don’t renew their lease. BUT, if you have the 7-day grace period firmly established in their lease, and they’ve never been more than 7 days late, then I would let it go, especially if you don’t have any other problems with the tenants.
agree with the above but if it really becomes problem, you could use their security deposit
OP, I think your question is valid and reasonable.
Times are tough and lots of people are having financial problems. But giving you a heads up if payment is gonna bump against the definition of “late”, while not in the lease, is the kind of thing courteous people do in 2-fam situations.
If they want to go with the letter of the law/lease, probably not much you can do short-term, but a gentle reminder that not renewing the lease is also part of the lease might soften their attitude a tad. Good luck!