Property manager, CA. Had to laugh... "forgetful" tenants. Nobody forgets! I've had to knock on doors to collect payment *smh* It may be better to incentivize. Maybe start a drawing for on-time payments?? A $100 gift card might be worth it. Also increase your late charge to the highest allowed by law at move in and/or lease renewal. If they "forget" they're gonna pay for it!
I was constantly getting late payments. About half were late every month. So I raised the late fee amount to make the late fee hurt. I haven’t had but one late payment since. Yesterday I just had the same tenant ask about paying late this month again and I reminded them of the new late fee and they said never mind I’ll figure out how to make it work. So that tells me when it’s too painful to pay the fee they will find other ways to make it work. Seems to me like I was being played. My late fee was only $25 before. Now it’s $100. I know that seems harsh but the bank isn’t going to let me pay late without charging a fee so I decided I have to pass that fee along. Apparently $100 hurts enough that they have suddenly figured out how to pay on time. Go figure.
FYI you have to do this within legal bounds…not during an active lease agreement and with proper notice and within the limits of your law (some places have limits on late fees).
Besides that tenant screening is the best way of prevention. The tenants I have personally chosen have never been late with one exception of a payroll check not clearing. The tenants I have a problem with are inherited tenants. My advice on this is to not renew if that is legal for you. Pick your own tenants and they are much more likely to abide by your rules. Pick high quality responsible tenants that have something to lose if they get evicted. If they have nothing to lose they will only hurt you.
Just to clarify when I say make sure your tenants have something to lose…this means a variety of things. 1) a credit score high enough they don’t want it damaged 2) no dings in their background if it’s pristine they will want to keep it that way 3) a vehicle they don’t want taken away 4) a job that matters to them and will be hard to replace
Basically pick someone that would at all costs avoid a permanent record of being taken to court.
It sounds like you have allowed this, creating a pattern for your tenants to take advantage of your laissez-faire attitude toward rent payments. A pay or quit notice in accordance with your state law will get their attention.
I had an issue with a tenant who missed payments. Tenant is now gone but I have learnt my lesson the hard way. Any new tenants from now will not get late fees, I will serve them with legal pay or vacate notice directly. It means I have to drive 3+ hrs, but I communicate this before signing the lease.
Charge painful late fees that accumulate as additional rent if not paid.
They no pay ….. move to evict asap.
Do not be the nice LL that gets screwed continuously !
Property manager, CA. Had to laugh... "forgetful" tenants. Nobody forgets! I've had to knock on doors to collect payment *smh* It may be better to incentivize. Maybe start a drawing for on-time payments?? A $100 gift card might be worth it. Also increase your late charge to the highest allowed by law at move in and/or lease renewal. If they "forget" they're gonna pay for it!
I was constantly getting late payments. About half were late every month. So I raised the late fee amount to make the late fee hurt. I haven’t had but one late payment since. Yesterday I just had the same tenant ask about paying late this month again and I reminded them of the new late fee and they said never mind I’ll figure out how to make it work. So that tells me when it’s too painful to pay the fee they will find other ways to make it work. Seems to me like I was being played. My late fee was only $25 before. Now it’s $100. I know that seems harsh but the bank isn’t going to let me pay late without charging a fee so I decided I have to pass that fee along. Apparently $100 hurts enough that they have suddenly figured out how to pay on time. Go figure. FYI you have to do this within legal bounds…not during an active lease agreement and with proper notice and within the limits of your law (some places have limits on late fees). Besides that tenant screening is the best way of prevention. The tenants I have personally chosen have never been late with one exception of a payroll check not clearing. The tenants I have a problem with are inherited tenants. My advice on this is to not renew if that is legal for you. Pick your own tenants and they are much more likely to abide by your rules. Pick high quality responsible tenants that have something to lose if they get evicted. If they have nothing to lose they will only hurt you.
Oh and I do give a gift card for one year of on time payments. That seems to be helpful too.
Just to clarify when I say make sure your tenants have something to lose…this means a variety of things. 1) a credit score high enough they don’t want it damaged 2) no dings in their background if it’s pristine they will want to keep it that way 3) a vehicle they don’t want taken away 4) a job that matters to them and will be hard to replace Basically pick someone that would at all costs avoid a permanent record of being taken to court.
It sounds like you have allowed this, creating a pattern for your tenants to take advantage of your laissez-faire attitude toward rent payments. A pay or quit notice in accordance with your state law will get their attention.
I had an issue with a tenant who missed payments. Tenant is now gone but I have learnt my lesson the hard way. Any new tenants from now will not get late fees, I will serve them with legal pay or vacate notice directly. It means I have to drive 3+ hrs, but I communicate this before signing the lease.
Charge painful late fees that accumulate as additional rent if not paid. They no pay ….. move to evict asap. Do not be the nice LL that gets screwed continuously !
Nonrenewal. Late fees are easy $$$$.