Introduction
What is that you say? Your tenants have never been late with the rent. There is no point in you reading this article. Now, hold on one minute. What if the situation changes? Your tenants suddenly display a pattern of late rental payments. Or, what if those tenants move out and the next tenant is chronically late with the rent. Now you must take action. Would you know what to do? You will if you read this entire article.
The Frequency of the Late Payments Makes a Difference
If this particular tenant is usually on time with the payments, but perhaps slips up once in a while, there is no cause for alarm. In that case, no action is really required. HOWEVER, if this becomes a habit and begins to happen every month, even if it is a sudden occurrence, you do need to take action. So, what can you do about this? Keep on reading!
First, Have Your Attorney on Stand-by
You never know when a situation such as this can turn ugly. You might wind up having to take legal action to evict this chronically late-paying tenant. It could even result in court appearances. Do not wait until it is too late. If you don’t already have an attorney, now is the time to hire one. Remember the old boy scout motto of always being prepared.
Double-check Your Lease Records
Read your entire lease thoroughly. Why? What are you checking for? In the first place, the date your rent is actually due. Most landlords prefer the 1st of every month. Occasionally some landlords may get cute and request an alternative due date.
Next, you want to re-read the part about a grace period, if you have one in your contract at all. Again, this differs amongst landlords. Some stick to the 1st of the month, period! Others allow a specific amount of time, often between three and five days past the 1st, for rent to be paid.
Lastly, you want to remind yourself of what it says the penalty for chronically late rental payments is. You should have that information in your records from the get-go. Now is the time to review it and be sure of the language you used.
Send Your Tenants a Written Late Rent Notice
Include information on the due date as a reminder. Then clearly state all late fees owed. If you have had to spend your own money on legal fees, even at this juncture, you may be entitled to recoup that money along with the rental amount and the amount of the late fees. Last but definitely not to be left out is a detailed explanation of what will happen if this is not paid pronto. If rent remains unpaid, send them a notice to pay or quit – this is the first step in an eviction process.
Speak Directly with Your Tenants
Find out first-hand what is going on. If there is a traumatic problem, perhaps it can be worked out. Then steps can be taken to ensure it does not become a pattern. Remember though, you are not in the charity business. The whole idea of having tenants is to earn rent money from them. You are not responsible for their misfortunes. Talk to them now!
If this has always been a great tenant until recently, but something has changed and now the payment is constantly late, you must protect yourself. Now your discussion with the tenants is one of necessity. You need to prepare to evict him or her. It is highly recommended you have your attorney standing next to you when you do this. Expert counsel ought to be mandatory, or at the very least is wise.
Now is the Time to Consult with Your Lawyer
Why? Read this explanation! At this stage of the situation, eviction is inevitable. You have to make sure everything is done perfectly legally. In most states, not only do landlords have rights, but so do tenants. They are most likely getting advice from their lawyer, therefore you should too.
Whatever advice your lawyer gives you, follow it precisely to the letter. This is necessary to protect yourself. If you do not understand something he or she is telling you, ask questions. Have them explain everything to you so that you do understand. Then act on this advice.
What NOT to Do
Now that you have been told what you SHOULD do when tenants are behind on the rent payments, you can read these tips on what NOT to do. Knowing this information is equally important.
Leave Personal Belongings Alone
Unless you specifically have legal permission to literally move someone’s belongings out into the street, REFRAIN from doing this. You are also not typically permitted to lock them out or shut off utilities. You absolutely MUST have written permission from a court prior to commencing these actions.
What Should You Avoid in Your Written Notices?
When you do serve a written notice to a tenant, even if it is a final eviction notice, you are NOT allowed to threaten them or humiliate them. If you ignore this advice and proceed to do it, do not be surprised if you get slapped with a harassment lawsuit.
Final ThoughtsYes, you do have legal protections when it comes to what you can do when your tenants are habitually behind on their rental payments. If you follow the advice in this article, you should be just fine. For a more detailed step-by-step guide on eviction check out this article.