Friday, January 21, 2011

My tenant is late paying the rent.

Situation

It's the 6th of the month and I still don't have my rent.  The tenant says they are going to pay soon. 

Response

I am guessing that the rent was due on the 1st of the month.  Your rental agreement probably has a clause for a penalty if the rent is paid late.  If not, you need to start using new rental agreements. 

Before taking more drastic steps you can call the tenant and see why they are late.  If this is there first time being late, you might decide to give them a break.  Make sure that if you make an arrangement with them that you pin them down to a specific date and amount of payment.  Follow up your conversation with an email to them confirming the agreement. 

If they aren't available or they don't return your calls, it's time to take the next step.

The next step that you should take is to serve a 3 Day Notice to Quit or Pay Rent.  This notice should include their name and address.  It should then explain that they are late with the rent and that the amount due is the contract rent plus the late fee.  It will then advise them that if payment is not received within 3 days of service of the notice, you will take legal action to regain possession of the property.

You should then go personally to the tenant and hand them the notice.  If they are not present, you can tape the notice to the door and then mail them a copy of the notice via regular mail service (not registered).

If the rent is not paid within the 3 days it's time to contact an eviction service to start the evicition or do it yourself if you have experience with that.

You can always negotiate with the tenant.  But be careful.  Promises do not pay your bills.  Many tenants who are late paying rent have a million excuses and they can delay an eviction for months if you are not careful.