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Background: Consider a renter who has been in a property over several years, with multiple lease agreements. The renter is generally good and keeps the property clean. This renter makes a late payment for the first time - the result of poor planning, not hardship. The PM communicates to the renter after payment was not received on last day of grace period with time remaining, saying if they brought it in before end of day it would not be considered late. Renter's response: "check is in the mail". Payment may only end up being one day late, but it is still late.
Response:
PM plans to send a letter containing the following sections:
1) Document the date payment was received - indicate payment is considered late.
2) Inform about Late Fee. We may decide the fee will be waived in this case - the first time payment is considered late under the lease - especially if it is only one day late. If so, this would be the only time we would do this. This also avoids escalation of the situation, because we believe the renter is not intentionally withholding rent, just planning poorly. If they didn't or weren't able to pay a late fee by the next month, they could technically be evicted. We're not looking for technicalities to hold over people, we just want good renters.
3) Remind that Rent is due on First of month, with a short grace period. Suggest renter plan to mail rent prior to 1st of month - the grace period is there to allow for delays and delivery issues. This also allows us to contact the renter prior to the close of the grace period to remind rent hasn't been received, giving them a chance to get it submitted in person on time.
4) Quote the relevant excerpts/clauses from the lease showing the due date, grace period, late fees, including the language about consequences of late payment
5) Show a history of rents paid with date received details. Shows the PM is documenting this and tracking it closely.
6) Send the letter by certified mail. Legal documentation for our records and protection.
The objective is to remind the renter that the due date is the first of the month, not the end of the grace period, and show that we are keeping track of this with documentation and are serious about compliance.
The renter is likable, and we want them to succeed and stay in the property. Lease allows a reasonable late fee in the case of late payment, but this seems excessive in this case. If they didn't pay the late fee in full by the next month, they could be evicted. Lease further stipulates that two late payments within a given lease period results in a rise in the rent by 5% until the end of the lease period. I'd prefer this not escalate to that as it will only damage the relationship. We are all for working with people and helping them out, however, if something goes off the rails, we must be protected.
My question: Is the response appropriate or too heavy? We're trying to be reasonable, but professional, while we still want to maintain good relationships with renters.
Lighten up, singularity! Just tell the tenant that you appreciate what a good one he is and that you'll waive the late fee this time but just a reminder that rent is due on the first. Good grief, you're making a Federal case about a little thing like this when by your own admission the tenant has been a good one for several years now. Don't sweat the petty stuff.
I agree this is over the top. If a tenant is late, even by one day, in the first few months, I would say something. If they are late a second time, they get a late fee. But to be 1 day late after being on time for several years, and you've already called them and let them know it was late, that is as far as I would take it.
Now if they are late again next month, or anytime in the next couple of months, I think then you send a notice.
The response by the PM is the correct response. You do not ever want to deviate from the process set up for any rent payment discrepencies. Always have that letter go out regardless of the situation. That protects you. If this is going to be an excused issues, you can always communicate to the tenant that you understand the issue and come up with a workable exception and place it in writing for both you and your agent to sign. That ensures that there can never be any claim of "standard practice or past practice, or a meeting of the minds revision, or......". However, the letter should always go out regardless of the final decision on how to handle this.
I think it might be okay to let this one slide since they've had a history of being good renters. My suggestion to you might be to maybe look at some property management software options like RealPage or Buildum that allow your renters to pay online. That way, even with poor planning, it can be quick and accessible to make a payment online instead of waiting for snail mail to deliver a check. Something to consider!
Maybe check it out : [url]http://www.realpage.com/property-management-software/lease-management-systems/lease-management-software[/url]
I was in the same situation a few months ago...long time tenant, never late with rent before, responsible, clean, quiet, etc but he just lost track of time.
After speaking with him by phone, he was aghast that he missed the rent due date. In terms of MY documentation, I told him I would have to serve him with a Pay or Quit notice, and then I told him I would give him a one time, and one time only waiver of the late fee, and would follow up our conversation with a notice of such. He got me the rent that same day, but to do a CYA, a notice was in my best interest. I did serve him with a Pay or Quit on Dec. 3, the first day that the rent is considered late.
Here's what my notice about the waiver said, maybe it will be helpful to you:
Your rent for December 2011 was not received on December 1, 2011 or December 2, 2011 and was subsequently considered late on December 3, 2011.
As per our discussion by phone on Saturday, December 3, 2011, you will have a one time, and one time only, waiver of the late fee.
This “one time and one time only” waiver does not, in any way, change the terms of the rental agreement regarding late fees or any other terms in the rental agreement.
Thank you.
This notice was served by the Landlord(s) in the following manner on December 5, 2011:
(✔) by leaving this taped to the mailbox or taped to the outside of the front door frame.
The response by the PM is the correct response. You do not ever want to deviate from the process set up for any rent payment discrepencies. Always have that letter go out regardless of the situation. That protects you. If this is going to be an excused issues, you can always communicate to the tenant that you understand the issue and come up with a workable exception and place it in writing for both you and your agent to sign. That ensures that there can never be any claim of "standard practice or past practice, or a meeting of the minds revision, or......". However, the letter should always go out regardless of the final decision on how to handle this.
Quote:
Originally Posted by SCDQ
I was in the same situation a few months ago...long time tenant, never late with rent before, responsible, clean, quiet, etc but he just lost track of time.
After speaking with him by phone, he was aghast that he missed the rent due date. In terms of MY documentation, I told him I would have to serve him with a Pay or Quit notice, and then I told him I would give him a one time, and one time only waiver of the late fee, and would follow up our conversation with a notice of such. He got me the rent that same day, but to do a CYA, a notice was in my best interest. I did serve him with a Pay or Quit on Dec. 3, the first day that the rent is considered late.
Here's what my notice about the waiver said, maybe it will be helpful to you:
Your rent for December 2011 was not received on December 1, 2011 or December 2, 2011 and was subsequently considered late on December 3, 2011.
As per our discussion by phone on Saturday, December 3, 2011, you will have a one time, and one time only, waiver of the late fee.
This “one time and one time only” waiver does not, in any way, change the terms of the rental agreement regarding late fees or any other terms in the rental agreement.
Thank you.
This notice was served by the Landlord(s) in the following manner on December 5, 2011:
(✔) by leaving this taped to the mailbox or taped to the outside of the front door frame.
This is worse than the Stepford Wives. Talk about robotic mindlessness!
This is worse than the Stepford Wives. Talk about robotic mindlessness!
You are entitled to your opinion, of course.
You may perceive these two responses you quoted as "robotic mindlessness" but many of us have learned from experience that having something in writing is a good way to document things, especially if we ever have to appear in court at a later date.
I always find it good judgement to follow the law, be appropriate and professional in my contacts with tenants, attempt to communicate as clearly as possible, and to document everything relative to renting properties.
Perhaps you don't realize that your post may read as deliberately insulting, and this, in turn, reflects badly upon you.
I think that response is way too heavy for a tenant that has been around that long and has zero history of late payments.
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