Five Strategies For Breaking the Late Rent Payment Cycle

Having tenants who are habitually late in paying rent is a difficult situation for many landlords with mortgages to pay. Then too, it could be the start of a vicious cycle that can prove difficult to break, especially if the tenant is allowed to continue to make late rental payments. Therefore, the following five strategies may help landlords put an end to the problem of habitually late rent payers.

1. Impose Penalty Charges. If you make late rent payments hurt, tenants will be forced to comply with the rules. Ensure all your lease agreements clearly state rent due dates, when payments will be considered as late rent payments, as well as, the penalty that will be imposed for late payment. You can, either charge a flat fee or a daily fee until the rent is paid up. Certain states limit the amount for penalty charges, so check that out, before deciding on the amount you wish to charge for late rent payments.
2. Send Early Reminders To Late Payers. There are some tenants who never remember the rent due date. The best way to ensure they pay on time is by sending them a friendly reminder ten days before the due date. As well, it is a good time to inform them you have a late payment penalty charge rule, which can be avoided by paying on time.
3. Stand Your Ground Firmly. If you do not take firm steps to rectify late rent payment habits, you will not be able to change them later. If, a tenant is experiencing financial or personal difficulties, inform them only one late payment will be allowed, and future late rental payments will incur a penalty charge. You must also remember not to give preferential treatment to any tenant, because if other tenants learn you have allowed one of them to pay rent late, they may follow suit.
4. Report All Late Payments To A Credit Bureau. If you report late payments to the credit bureau, it will turn up the heat for late payers. Tenants will not appreciate black marks on their credit report and will do their best to avoid the problem in future. However, it may not work with all tenants, especially if they have developed a pattern of abusing their lease agreement. If this is the case, the last solution will probably be the best course of action.
5. Serve Notice To Pay Rent Or Vacate. Seeing an official notice to either pay up or vacate sends two messages to the tenant. Firstly, it lets them know their current behaviour will not be tolerated as you actually mean business. Secondly, it lets them know if they do not begin to make timely rental payments, they stand to lose their rental accommodation. As this is a serious matter, this strategy should be your last resort.

Before beginning proceedings to evict a tenant, late payments should all be documented to protect yourself from tenant claims slapped on you. If a tenant decides to fight an eviction notice, this documentation will serve to prove your case for deciding to evict him / her.

Avoid habitual late payments by clearly stating in the lease agreement what will be considered as late payment, and the actions that will be taken if any clause of the agreement is violated. Nip the problem in the bud.

To avoid problem tenants, landlords must select them carefully to ensure they are not only models of good behaviour, but that they will remain with them for many years to come. Further, getting relevant information on rental application forms assists you in screening prospective tenants, tenants who will not only respect and maintain your property, but limit property damage to only wear and tear, as well. For help in suitable tenant selection, visit www.e-renter.com for tenant
screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.