Three great additions to last week’s tip about what to do when the rent is late:
In Texas, a check is not considered a note, it is the same as cash. When a check is returned for any reason, The writer has ten days to pick it up to avoid going to jail. Always get the vital info. Name, D.O.B., DL.#, AND CURRENT ADDRESS. Any check over two hundred dollars is felony theft and punishable by a fine and jail time. Always prosecute and never hesitate to let your tenants know you want your rent paid on time.
– Monty Peck
Good information, Monty. Other states have similar laws, including Arizona and Washington. Check your state law to find out. That is an excellent motivation for your tenants to pay with a good check.
1. File An Eviction
While last week’s tip is correct in that it costs money to file an eviction, I usually give my tenants a Notice of Eviction that eviction will begin on a specific date if rent is not paid or arrangements made. I prepare this myself and serve this myself so there is no costs except my time. If you plan on doing this make sure it doesn’t violate your state laws. I find that this usually puts a fire under the tenant and they move out or pay up by the date without me having to do an actual full blown eviction proceeding.
2. Get Them To Agree To A Pay Schedule
I’ve done this a number of times; however, IF A TENANT CAN NOT PAY ONE MONTH OF RENT HOW IS HE/SHE GOING TO BE ABLE TO PAY 2 MONTHS RENT. I always make sure the pay schedule has the rent paided up by around the 15th of the month. Otherwise, they will not have the money for the next months rent.
3. Get Them To Sign A Promissory Note
I do not agree with this suggestion. I believe it is going to make you a lot worse off. I like a check. If it does not clear, I turn it over to the police/hot check coordinator who for no fee from me will file criminal charges against the tenant, collect the check amount, and send it to me in 6 or 9 months if they are able to collect. Since I did not get the money, I can still proceed with an eviction.
If you are going to have them sign something, what you want is a Settlement Agreement, Waiver of Counsel, and Entry of Appearance and possibly a Consent Order all signed in front of a notary. The waiver of counsel states the tenants agree they do not have a lawyer and are signing voluntarily. The Entry of Appearance agrees the tenants have notice and do not have to be served with the lawsuit. The Settlement Agreement sets out the settlement between you and the tenants in the lawsuit such as date landlord gets possession and may obtain a writ of execution, judgment amount for unpaid rent, etc… This is what is commonly done in uncontested divorces and can be done in any lawsuit. I would suggest consulting with an attorney for your state to do this. These documents can all be drafted and signed before the actual complaint is filed with the court. These documents can be trashed if tenants do what they agree to or can be used in the lawsuit. It is possible to file the lawsuit and have an Order of Possession the next day. This will cost you money like an eviction. However, it may be less expensive than an eviction and may save you time.
4. Get Them To Borrow Money From Someone Else
This is always best. I would like to add that I agree with the tip that Tenants pay whoever yells the loudest. I don’t call, I go out to the pemises and knock on the door when Tenants have not paid. Several times I have found the property vacant or the tenants in the process of moving out. I repeatedly go out to the property every few days until the money is paid and politely ask the tenants what their plan is, has it changed from a few days ago, how can we resolve this, etc… Be polite. You do not want to be found to be harrassing.
– Robbie Young
Paragould, AR 72450
I have a tenant who lost his job, every time he gets a new job they tell him “we have to lay you off for now because business is slow” or “you are just not right for this job.” He is trying; he goes out every day looking. So he pays me what he can a week. But I must charge $30.00 late fee every month he is late. If I take him to court that is not going to work because he has nothing. Right now he is up for a new job so we will have to see how this works out. He shares the apt with 2 other people so at least I am getting something. I’ll give him until the end of the month and then we will have to find someone else. The tenants choose their roommates and interview them. I hope it works out for him.
– Rosaleen R.
This seems small, but made a big difference: eliminate the grace period. Rent is due on the first, late on the second.
The younger generation is accustomed to bills without a grace period.
1. It clearly defined the deadline thus reducing confusion about weekends/holidays/“after 5pm”…and special requests.
2. We start contacting the tenant on the second, rather than the 10th – a third of the month and a paycheck had already passed, and pushed the eviction into the next calendar month.
Our $5 per day late fee gives them motivation to pay us, rather than the others. If they hustle, the fee is low. If they drag their feet, they pay for it.
– Brad Grayson – Indiana
Good idea where you can get away with it. Indiana is relatively landlord-friendly. Some states’ landlord-tenant laws require a grace period, though. (Tenants have to be protected, after all). But if you can do it legally that is a terrific motivator for prompt rent payment.
Now to this week’s tip.
Tenants have a responsibility to use care when they live in a property. They do not have a license to do damage. While they are not responsible for ordinary wear and tear, they are responsible for deliberate or negligent damage, no matter who did it (except the landlord, of course).
Proper care of the property by a tenant begins when he or she moves in. The rental agreement should state that the tenant is responsible for damage over and above ordinary wear and tear. It should also be on the Move-in Checklist. When we do the “Condition of Premises Report” walk through with the tenant, we can explain in detail examples of what damage is normal wear and tear and what is excessive, negligent and/or deliberate.
Working with tenants who have had problems in the past provides a special challenge in seeing that they maintain the unit appropriately. We have to make it crystal clear what their responsibilities are and what is expected of them. Spend as much time as necessary to make it clear. This subject is probably where you need to spend most of your time with a new tenant whom you know has had a problem with other landlords or who has never lived on his or her own before.
Sometimes they are simply so inexperienced that they don’t know what sorts of things cause damage. Slamming doors and windows, swinging on doors, climbing up and down drain pipes, climbing lattice work are all things that cause damage, but of which some people have no idea of the cause and effect relationship. It is our job to make it clear, even at the risk of sounding nit picking.
Whatever the problem, it should not be yours, but the tenant’s. If it is a repair problem, give him or her the name of someone who can do the repairs, telling him or her the handyman can work at a reasonable price. If there are crayon marks on the wall, tell the tenant that we have an account at a certain paint store to buy paint at a lower price. Make your tenant solve the problem.
Tenant Responsibilities
The laws of most states say the tenant has the following duties to his or her dwelling:
When we discover damage, such as a broken window, hole in the wall or door, garbage piled up or crayon marks on the wall, send the tenant a note. In the note, remind him or her of a tenant’s responsibilities and suggest how he or she can solve the problem.
If the damage is too much for the tenant to fix on his or her own, we can do it or have it done ourselves and send the tenant a bill. In the bill specify when it must be paid and remind the tenant that any damage can be deducted from the security deposit. If the tenant cannot pay it all at once, make him or her call to arrange a payment schedule.
If none of that works, we have the final option of the 30-day Notice with Cause terminating the tenancy. That gives them 15 days to correct the problem or move in 30 days (check the specifics for your state, they vary markedly). Should the security deposit be inadequate to cover the cost of the damage, we would have to first, bill the tenant for the excess, and then, when he or she doesn’t pay, obtain a judgment for the rest.
If we have done our job right at the beginning, though, the tenant will want to work out a solution with us. Some tenants have a history of not getting along with landlords, probably mostly their own doing. But on rare occasions, it is because of the attitude of landlords whom they have rented from. Regardless of the reason, doing our job right means that we have made it clear at the beginning of the tenancy that we want them for a tenant, that problems are solvable, and that they can talk to us. If we expect good results we are likely to get them.
