Tenants Asking To Pay Rent On 7th Instead Of First (fee, accept)
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Okay, long story short this is my first time being a landlord. Renting my house so I could rent my parents house as they moved out of state for 2 years. Got a tenant in there, 2 year lease. We are one year in so far, they have always paid on time. Credit score upfront was 750. It's a couple with a 1 child. Claimed on app they made 150k a year.
Overall I'm happy, they bothered me early on about sum trivial things how often lawn was cut and things like that but overall pretty good tenants, pay on time, take very good care of the house. Even did some work to house on their own expense fixed mailbox, fence, etc. This was done as they are in there for two years so wanted to make it there own so to speak.
Anyhow, this month February I get an email asking if they could pay on the 7th. Rent is technically due on the 1, grace period til the 5th so it would be two days late. Techinically there's $5 a day late fee. They asked if they could pay late, didn't mention late fee. Not sure if I allow it and maybe set a president for this going forward and if I should say no or if I should be thankful I got a good tenant so far, let it slide this one time and dont make any future exceptions.
It's up to you. Abiding by the late fee is the correct thing to do, but if they've been otherwise good tenants (and it is a positive that they contacted you in advance), you could say something like "Since this is the first time, and you talked to me in advance, I'll let the late fee slide this time as long as it's received by the 7th -- after that, and the full fee of $5 per day will be assessed starting with the 5th." I'd put that in writing and have them agree to it in writing.
Or maybe it is just easier to stick to the late fee, but thank them for the notice rather than just leaving you hanging. It does make me wonder if it's a sign of things to come, but I guess you can't judge that until more time has gone by -- and since they've been good tenants for the first year, I would be inclined to give them the benefit of the doubt for a month.
You have a good tenant which is like gold in my opinion. Since this seems to be a one time thing, I would question them about it a bit as to why it's needed and make my determination from there. Perhaps there was an unexpected medical expense or other one time emergency expense. If that was the case, I think I would excuse the fee this one time, making it clear in any emails that it was a one time thing since they have been excellent tenants. The key is to make it clear that this is a single exception to the late fee.
I would probably allow it. But I would say something like "I value you as tenants and you have a good payment record so this one time I will make this concession. But please be aware this is a one time only event and will not be extended again". Maybe not those exact words, but something to that makes it very clear this is a one time only thing.
They have been good tenants, they are making arrangements in advance, they have told you when the rent will be paid. I suggest that you allow it.
If you want to be hard nosed, send them a written notice back that you will allow it as a one time thing and won't count it as a late payment on their record, but that they will owe you an additional $10 late fee.
I will occasionally allow a good tenant to make arrangements in advance for a late payment, as long as it is agreed before the due date and as long as they can tell me when I can expect the rent. I don't normally charge the late fee if arrangements are made in advance.
No brainer to me. I see no reason not to do it. Just make he 7th your new "1st". Same grace period etc.
Sounds like really good tenants.
It's kind of like the locals all complaining about the HS FB coach who wins but isn't the most popular guy in town and people cry for him to be fired......I always say "careful what you wish for"
Bottom line is, you will still get your money each and every month. (at least it appears) I wouldn't cause a rift over something this easy to deal with. I wouldn't even act towards them like it is a big deal at all. Benefit of the doubt until they start to take advantage.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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I would also allow it but make it clear that it's only this once. Since rent is paid in advance, if they moved in on the 1st they should pay on the first. If you made a permanent change to accept rent on the 7th, you are allowing them to live there 7 days every month without having paid.
I would also allow it but make it clear that it's only this once. Since rent is paid in advance, if they moved in on the 1st they should pay on the first. If you made a permanent change to accept rent on the 7th, you are allowing them to live there 7 days every month without having paid.
Does that matter or not? I really don't know. Wouldn't it work out the same at the end if they move out in a few years and you prorate it?
I would let it slide for one month but not after that. I charge a twenty dollars for a late fee and have collected it only a couple of times with bad tenants. Five dollars for a late fee is being generous enough.
If they are good tenants, then your only concern should be that you get paid appropriately and that they continue to take good care of your property.
Keep track of the payments to make sure that you are still getting the correct rental amount monthly and yearly, but there is absolutely no reason to hold a hard line on the payment date if you are still being paid monthly.
I'd be wary of advice telling to take a hard line with good tenants. I know a lot of landlords consider themselves to be the ones calling the shots, but the truth is that you are as much at their mercy as they are.
It doesn't take much for a rental property to become a constant source of aggravation due to unfriendly tenants, constant repairs, or other issues (indeed, just read this forum).
Count your blessings!
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