Tips for Fixing Consistent Late Rent Payment

Author: Todd Christiansen | Category: Rent Collection

I am sure you are saying to yourself that owing rental properties would be a piece of cake if it wasn’t for the tenants!  They make the job of being a landlord a challenge.  When you have good tenants, it seems easy, when you have bad ones, you hate your properties and question why you ever got into this business!

Tenants that pay rent late can actually be more frustrating, in my opinion, than ones that never pay.  While this may sound strange, think about it.  Each month you are wondering if they are going to pay the rent and when.  You call, they give you promises, and you wait.  You spend time wondering what you could do different, when you should step up your enforcement, when should you escalate the non-payment to a notice of eviction.  In fact, I would much rather have a tenant call me up and say “I am not paying you anymore” than sit for days or even weeks to see if my late payers are going to pay me.

While I have not found any one size fits all for getting tenants to fix their late rent payment, these are some tips that may work for you:

  • Make sure the tenant actually understands when the rent is due.  Some tenants are just not that organized and don’t really pay attention to when they must pay rent.  This may sound strange, but I have seen it several times.  You may also be the problem if you are accepting their rent at any time during the month without asking for it or explaining that it is due on a certain date.
  • See if the tenant would be better at paying the rent twice per month.  Maybe they should send you partial rent each day they get paid at work.  This would help them stay ahead and insure you are getting your money in a timely basis.
  • Send a late rent payment letter each time your tenant is late.  Maybe this repeated late rent notice will get them motivated.
  • Charge your late fee each time the rent is past due and don’t waive it.  Mail the tenant a rent statement immediately the day after the rent was due.  This can serve also as a late rent letter.
  • In some states, using a notice to quit, which is like a warning letter may also help you get them motivated.  This notice tells them they have 3 options:  pay the late rent immediately, move out immediately, or you will be evicted.  Strange as it seems, some tenants only seem to get motivated when they are facing eviction.
  • If the tenant has a good job, but just seems to be lazy about mailing the rent, see if they would do an automatic bank transfer from their checking account to yours each month on the due date.  This may be an excellent way to both of your lives simpler.

Solving late rent payments is an important step in making the management of your rental properties easier.

One Response to “Tips for Fixing Consistent Late Rent Payment”

  1. It is so true that owning rental properties is a lot more challenging than it may seem. A great solution for reducing the stress associated with owning a rental property is to hire a property management company. They will be able to take care of all the work for you, so you can sit back and watch the money flow in.