Tenant late with rent?

[Aiming_4_55]

Of recent, it seems like a lot of interest in investing in real estate and becoming a landlord.

What are your plans when a tenant decides to stop paying rent and/or returning calls or communicating?

My response in writing:
- Late Rent Notice on 5th day based on my lease
- Balance Due with intent to report delinquency to credit bureaus if not paid by end of month
- At one month late without communication, start Eviction Notice process. I know some say this might be harsh and others say why delay so long

Lack of communication could be caused by disconnected phone service, etc.

What will you do? What have you done?

Would you treat it differently if they paid half the rent a week late?

[samclem]

Quote:

Originally Posted by Aiming_4_55 Of recent, it seems like a lot of interest in investing in real estate and becoming a landlord.

I don't think it's "investing in real estate" at that point. It's "buying a j*b as a landlord" (as the content of your question makes clear). Which ain't quite the same as retiring. I enjoy reading the posts and participating, but it's just like buying a laundromat, etc.

Anyway, back to your main point . . .

[REWahoo]

Quote:

Originally Posted by samclem I don't think it's "investing in real estate" at that point. It's "buying a job as a landlord." Which ain't quite the same as retiring.

Career change...

[arebelspy]

Quote:

Originally Posted by samclem I don't think it's "investing in real estate" at that point. It's "buying a j*b as a landlord" (as the content of your question makes clear). Which ain't quite the same as retiring. I enjoy reading the posts and participating, but it's just like buying a laundromat, etc. Anyway, back to your main point . . .

Likely at least semi-retirement. Being a landlord doesn't take 40 hrs/week, unless you have a LOT of units.

To the OP: Research your state laws. Some have a 3 day pay rent or quit, some are 5 days, some 10, etc. Make sure you follow your state laws. I personally think it's all about communication. I generally try to work with the tenants, but even when they are late and communicating I give a pay rent or quit notice to have a legal paper trail to make any potential legal proceedings later go much smoother.

[Lisa99]

And whatever you do be consistent about it. Every tenant will have a sob story, but if the lease states that on the 3rd day late there is a $25 charge per day until the rent is paid, then charge them the money!

We have a property manager handle our 3 properties and she follows the lease to the letter. She manages about 450 properties and while she has issues inherent with having that many properties, she gets the deadbeats out fast.

[Aiming_4_55]

Agree, it's semi-retirement when I quit my day j*b, so it's been a part time j*b for a long time. I'm ok with it.

Yup, state laws have a 14 day pay rent or quit here in MN, I believe. I have worked with my tenants but a pain when my calls go unanswered. I agree on the notices.

Quote:

Originally Posted by arebelspy Likely at least semi-retirement. Being a landlord doesn't take 40 hrs/week, unless you have a LOT of units. To the OP: Research your state laws. Some have a 3 day pay rent or quit, some are 5 days, some 10, etc. Make sure you follow your state laws. I personally think it's all about communication. I generally try to work with the tenants, but even when they are late and communicating I give a pay rent or quit notice to have a legal paper trail to make any potential legal proceedings later go much smoother.

[Aiming_4_55]

Quote:

Originally Posted by Lisa99 And whatever you do be consistent about it. Every tenant will have a sob story, but if the lease states that on the 3rd day late there is a $25 charge per day until the rent is paid, then charge them the money! We have a property manager handle our 3 properties and she follows the lease to the letter. She manages about 450 properties and while she has issues inherent with having that many properties, she gets the deadbeats out fast.

Sob stories are a dime a dozen, I'm broke too My tenants have never seen me in a nice shirt or jeans without holes.

[Aiming_4_55]

On a positive note, I stopped by and dropped off a notice with a deadline of an outline of action to be taken with clear dates. Notice on front & back doors and windshield.

Rent is up to date now.

[arebelspy]

Quote:

Originally Posted by Aiming_4_55 On a positive note, I stopped by and dropped off a notice with a deadline of an outline of action to be taken with clear dates. Notice on front & back doors and windshield. Rent is up to date now.

Congrats!

[travelover]

Evidently, what you had was a failure to communicate.

Cue Cool Hand Luke.

[HpRyder]

Quote:

Originally Posted by Aiming_4_55 Of recent, it seems like a lot of interest in investing in real estate and becoming a landlord.

I can from personal experience backup arebelspy. Landlording doesn’t take anywhere near 40 hr/week. But it can have short periods of a couple of months of high stress to get a rental repaired and rented.

Quote:

Originally Posted by Aiming_4_55 What are your plans when a tenant decides to stop paying rent and/or returning calls or communicating?

Call and ask why he has not paid rent. If no response within 1 or 2 days, issue a pay or quit notice. Here in CA, it’s a 3 day notice, 14 days is a long long time.

Quote:

Originally Posted by Aiming_4_55 My response in writing: - Late Rent Notice on 5th day based on my lease

Never ever put a grace period into a lease. If it’s due on the first, it’s late on the 2nd. With 14 day pay or quit, that’s plenty of grace period.

Quote:

Originally Posted by Aiming_4_55 - Balance Due with intent to report delinquency to credit bureaus if not paid by end of month

I believe you can only report delinquency to the credit bureaus after you have an eviction judgment, not when they are a late pay. Don’t put in writing anything you don’t want to appear in court before an eviction judge and that you’ll have to explain. On our notices, rent and only rent balance due, is required, no late fees, no nothing, just documentable rent amounts due.

Quote:

Originally Posted by Aiming_4_55 - At one month late without communication, start Eviction Notice process. I know some say this might be harsh and others say why delay so long

Waiting 1 month with a 14 day pay or quit time guarantees you’ll lose at least 2 months rent. With court delays it will probably turn into 3 – 4 months lost rent, then another month to rehab the unit. Can you seriously afford this happening twice per year? This has nothing to do with harsh, it business. Unless of course you are running a charity. If they don't pay, they are stealing from you.

Quote:

Originally Posted by Aiming_4_55 Lack of communication could be caused by disconnected phone service, etc.

A disconnected phone could be caused by not paying the phone bill, indicating they have no money. Why wait. The renters know they owe the rent. No communication is a red flag, no mater what the reason.

Quote:

Originally Posted by Aiming_4_55 What will you do? What have you done?

Start eviction process. You can always cancel it if they pay up the rent, late fees and legal costs.

Quote:

Originally Posted by Aiming_4_55 Would you treat it differently if they paid half the rent a week late?

Check your state laws concerning partial payment during the notice period. Your acceptance may void the notice and you may have to start over. Thus your acceptance of ½ the rent on the 13th day, may require a new 14 day notice. Then in two weeks when the next month rent is due you may have to issue a new 14 day notice. If they paid ½ a week late, I’d issue a new 14 day notice and tell them to pay the other half before the notice expired, at which time I’d cancel the eviction process.

[Aiming_4_55]

Hp - good advice, thanks. I don't believe in that type of charity.

[Rambler]

I was soft hearted...cost me a bundle...don't even get me started.

R