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....
Overall decent tenants but they continually seem to have "hard" times which effect paying rent on time.
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.
So I've painted a nice picture of myself. But am I really....
I issued a 3 day notice to quit or pay rent on the first of the month as I'm done chasing after the rent each month.
But then again, maybe that's just part of the job.
I also issued a 60 notice to vacate the property.
Renters paid the rent so I rescinded the 3 day notice.
But still kept the 60 in effect.
I believe I've been fair but listening to the renters one would not think so.
One comment was "sure, we are late but we pay every month and don't complain about the late fee".
This comment caught me off guard.
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.
I wonder if I used overkill by issuing a 60 notice to vacate?
So, asking renters and landlords to chime in.
Am i a horrible landlord who should rescind the 60 day notice or am I gullible as hell?
Thanks for any input ..... solutions or remedies....
My comments as a ex-landlord for 20 years plus:
1. 60 day notice to vacate is totally appropriate IMO. However, read my comment 7.
2. Your late fees are not high enough. Raise your late fees for the next tenant.
3. When you evaluated your original tenant, did they have a good credit FICO score?, decent rent to income ratio? job security or job longivity? and good references? Not doing your homework may result in a bad tenant.
4. The tenants are paying $300 below market so it is really their fault and not yours. If the tenants wants to negotiate, then that is your call. However, I recommend they sign a new rental agreement.
5. I do not recommend evicting the tenant yourself, there are eviction services in the yellow pages who understand the legal process and are backed up by attorneys. Expensive but less grief and a mistake on your part can exceed their fees. When the tenants see that the 3 day notice or 60 day notice is issued by an attorney, they normally comply.
6. I always rent out my SFH for slightly less than market so that I get more applications. I then pick the most qualified applicant that represents the less risk. Be familiar with discrimination laws in your state. i.e. smokers, pets, etc. I always consulted an attorney to reduce my risk and one hour of attorney fee is worth it IMO.
7. Your rental agreement must include all late rent penalties and what warrants a 60 days notice to vacate. If you do not have specific language for a 60 days notice to vacate, then this can be disputed in Court. Make sure you keep a log book of all the late payments and tenant violations of your rental agreement.
8. Language in your future rental agreement may include: "If the tenant's rent payment is late more than 3 times in a 12 month period, then the tenant is subject to a 60 days notice to vacate at the landlord's dsscretion."