My Tenant can't pay all of the rent. Should I accept a partial payment?

Situation
My tenant has approached me with half of the rent payment and wants to make an arrangement to catch up.  Should I accept the partial payment?

Response

It's great when a tenant communicates, even if it isn't the greatest news! 

We all know that the economy is a challenge.  Many tenants are still losing jobs and hours are being cut back for others.  If you haven't experienced a problem up to now, you are very lucky.

The important thing to do is to keep open lines of communication.  The more you communicate the better the decisions you can make.

I would accept their partial payment and work out a payment plan with them.  Ask them when they will make the next payment and how much the payment will be.  It is important to be specific on both of these points so it is easier to follow up with them.  Be sure to write down and give them a copy of the payment arrangement.

Each time you accept a partial payment, serve them with a new 3-Day Notice to Pay Rent or Quit.  This reminds them that you can still take action for non-payment and it speeds up the eviction process if it becomes necessary.  Advise the tenant that you will not act on the Notice unless the next payment is missed or they have not contacted you.

If they contact you when they are late on one of the payments be glad that they are communicating.  Set up a new payment arrangement.  It is important to collect some money at each payment date.

Don't let this continue indefinitely.  At some point you should realize that they are in a home that is too expensive for them.  You may suggest that they move to a less expensive unit.  Be willing to let them out of their lease.  Remember that it is cheaper to let them out of the lease than it is to evict them.

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.