How to Handle Late Rent
Collecting rent is one of many aspects of managing rental property it can be a simple process or a nightmare. As always properly screening and selecting qualified tenants is an important first step. Listed below are few of the techniques we use to limit late payments and ensure payments are made on time month after month.
Explain the process up front let the tenant know what you expect from them as far as rent. When it is due, What the grace period is if any, how much the late fee is and when the 3-day notice will be served. Once these issues have been addressed stick to them. Do not give additional grace periods beyond what you have already established or waive any late fees.
Late fees. Make the late fees small enough that you will not feel bad about charging them and something the tenant can live with but enough to encourage on-time payments. A $50.00 late fee will not discourage a tenant from paying late if they know they can complain about it and you will waive the fee.
Be understanding but firm. If a tenant is having a hard time paying rent listen to them and let them know you understand, but the rent must be paid. Explain to them your process again and why the rent must be paid. Encourage them to lean on family, friends or local charities to help them during this time.
Serve the 3-day notice. The 3-day notice is a legal form that is the first step in the eviction process. There is an exact process to completing a 3-day notice and can be tricky if you have never done this before. If you need help executing this please give us a call and we can point you in the right direction. The 3-day notice will give the tenant 3 days, not including the day it was served weekends or holidays to pay the rent or move out. The majority of the time the tenant will pay by the end of the 3-day notice. If the tenant does not pay the rent in full by the end of the 3-day notice you can now file for eviction. If the tenant typically pays you rent by mail you might be required to serve a different type of notice.
I hope you find this post useful and informative for more information on property management check out our website and my blog at GunnPropertyServices.com
Please keep in mind we are not lawyers and this is not legal advice.