Been a landlord of a SFH for 10 years, same tenant since I started.
Renters are continually late on the rent, probably 7 out of the last 12 months.
They do pay but sometimes it's at the end of the month, which then causes them to be late the next month and so on....
I've assisted by returning half their rent deposit and using their security deposit as rent payment one month, which they're paying back each month.
Also offered a half month rent for the holidays once hoping this would get them back on their feet.
Only minimal rent increases each year, which should be helping them out.
The rental is about $300/month below market which I could charge tomorrow and get.
One comment was "sure, we are late but we pay every month and don't complain about the late fee".
Is their an appropriate amount of "lateness" allowed before removing tenants?
Overall I like the tenants (been their 10 years) and if not for chasing after the rent monthly I would still rent to them.
After 10 years, given all you've been through with your tenants, you have enabled their "lateness", thanks to all your kindness. My old boss had a saying, "Exceptions create expectations." - These have been sage words of wisdom that have helped me to avoid problems, and to understand them better when they do occur.
I use property management, but i remember the old days, when my dad was his own landlord and manager. He was very good at setting boundaries, and would definitely agree that your tenants should go. I would most likely agree too; but I don't know your tenants, and you seem to like them. There's a lot of missing information - like whether they are on a lease, or month to month - which could make a big difference in how you handle the situation. Do they have kids in school? How much is the late payment fee?
For you, you may be able to get new tenants at a higher rent, but you'd have to find a new tenant, and turnover the property which could be costly after 10 years. The advantages are that you can re-set your expectations of the new tenants with higher rent, proper deposits, documentation and up-front expectations about timely rent payment (and maybe a higher late penalty).
It sounds like you're having second thoughts and are fishing for some permission to change your mind about giving the 60-day notice to chronic late-payers. I doubt anyone who takes their landlording seriously would recommend condoning this behavior from a landlord-tenant perspective, although local laws can complicate (or simplify) things. It's pretty much a no-brainer. In all truth, you've let things go very, very deep with these tenants, and it's unacceptable that it has taken so long for you to get to this point (hence setting expectations).
The reality is, your SFR has worked out well so far (for 10 years!) but now you have a hard decision to make, and some changes to make for the future. It sounds like you're clear-headed and fair-minded. The costs to your tenant of having to move are not insignificant, and may provide some leverage to have a open conversation about the problems you are having - if you want to. It's possible they may not be fix-able.
We will all tell you the correct business answer; you don't need to follow that advice if it doesn't feel right to you. We don't have all the facts. You are the one that needs to be able to sleep well at night. This is a hard lesson of being your own landlord, and you'll have to work it out with your tenant - or not.
If you do ultimately choose to move forward with the 60-day notice, you may want to speak to a lawyer to get the most relevant advice and specific information on the process.
