In this article, I will share what you can do if your tenant not paying rent on time. Most landlords complain about late payments, which are common in every part of the world. But when they delay too much in rent payment, you can use these tips to collect the rent on time.
But first, know the reason behind it. You don’t want to create a problem between you and the tenant that may lead to a vacant unit. You have to be polite and ask for the rent with a follow-up. After all that procedure, if they do not pay, then you can evict them. But first, know what else you can do if they are not paying the rent. Can you solve their problems? Know it first.
Table of Contents
- What to do if your Tenant Not Paying Rent on Time?
- 1) Review the Payment History
- 2) Review The Rental Agreement
- 3) Send a Rent Due Reminder
- 4) Follow Up with a Phone Call
- 5) Give a Final Date
- 6) Send a Legal Notice
- 7) Begin the Eviction Process
- What Else You Can Do
- How to Avoid Late Payments
- Please Note
What to do if your Tenant Not Paying Rent on Time?
According to research, the most common reasons people do not pay rent on time are as follows.
- They completely forget it unless you remind them.
- They are having financial difficulties recently.
- They are dealing with a personal issue.
- Some error occurred at the bank.
- A property dispute has occurred there.
If you encounter any of these problems, know that you can solve them without removing them. But if the problem is something you can not control then you have no other option. Here is how you will check if they are playing games with you or has a problem you can solve.
1) Review the Payment History
Double-check your payment records and ensure that the tenant has not initiated a payment yet. Normally people use the grace period, which is between 3 – 5 days, and if they do not pay after that time, a late fee will be charged, according to the lease agreement.
Now, what is this Grace Period? It is the amount of time allowed to the tenants after the due date passes before the late fee kicks in. Although not every state legally requires this period. If it is in your agreement, you can charge them. Applying the late fee charges will help discourage late payments in the future.
2) Review The Rental Agreement
Before you charge a late fee, review your lease document well. If it is not there clearly mentioned, you can not charge a grace period and late fee, no matter the situation. So make sure you include that when you renew your lease agreement. But still, a late payment is a violation of the lease agreement signed by both parties, and you have the power over it. It is clear what you can do.
3) Send a Rent Due Reminder
If your tenant not paying rent on time, then inform them about the due payments list complete list and details and why their charges may increase for late payments. You can list the following things.
- Rent due date
- Total overdue amount
- Any late fees in the past
- The property address
- Tenant’s name
It will help remind the tenant that he is making a big mistake and must clear the payment as soon as possible. You must keep a written paper of these overdue notices, which may help in the eviction if they knowingly reject you.
4) Follow Up with a Phone Call
If they do not respond, don’t be angry. They may have some problems. Give them a call or visit their place, and you will learn they have got your notice and initiated a payment. This phone call or a personal visit does the same thing as the notice does, but it is an in-person talk that is more effective.
5) Give a Final Date
Now, after all that humble approach, if they do not listen to you and deny your offers, then give them a final strong notice and let them know if they do not pay all the due within that time, you will send them a legal notice, and then the final eviction notice. It might work as they will worry about the police and being homeless.
6) Send a Legal Notice
After the final data expires, you do not have any other option. Tell them to pay the due or leave the house. But some states have specific requirements as to how to do it. If the issue proceeds to court, you may have to prove that you followed the legal guidelines for delivering it. So be careful about it, and hire a legal expert to help you better.
7) Begin the Eviction Process
Now prepare your eviction process according to the lease agreement. Most of the time, the police can do all the work, but sometimes you may need to visit the court and pay its fees along with an attorney fee. So in the end, if you have strong reasons why the tenant not paying rent, then you will win, and they will leave the property.
What Else You Can Do
There are some other things landlords do if the tenant not paying rent and showing aggression, but it’s a personal choice, and most people will not do all of them. But if you have to do then here is your list.
- Temporarily reduce the rent. It will help you cover your expenses, making things easier for your tenant.
- Any other suggestions from the tenants that can work for both of you?
- Create a solution with the tenants if you have enough to cover payments (that you must have in this rental business).
- Postpone the rent payments with a clear agreement.
- Research other options that offer rent payment support.
No matter what you do, you must have all the things written, and after that, if they do not pay, evict them directly.
How to Avoid Late Payments
- Double-check their background before giving the keys.
- Hire a property manager to manage your building.
- Maintain a good relationship with the tenant.
- Communicate regularly with the tenants.
- Keep records of rent payments physically and digitally.
There is a legal procedure in every state when it comes to evicting people. The tenants have some authority, and you also have some. You just can’t evict someone. You must follow the proper legal process and have a good reason for it. That is why please consult with a legal expert, as I am not one. This article is only for educational purposes. Talk to an expert and then move forward. You will remain safe.
So these are the best things you can do if your tenant not paying rent on time. You don’t have to evict them but solve their problems if you can. Try to understand their inner feeling. Are they playing games with you, or do they have a serious problem that needs solving soon? Help them as much as you can, and then if nothing works out, you don’t have any other option than evict them from your property. Be human and follow the law.