This is for propertymanager or anyone else who collects the rent in person.
The lease says the rent is due by 5PM on the 1st of the month.
I’m wondering if this could be an issue with collecting the rent in person. If the tenant agrees on the phone to be there at 10AM to pay the rent, I go over there, and they’re a no-show, can I consider it late rent then, or will the 5Pm clause cause a problem? Thanks.
I give a grace period of 5 days before I really begin my collection demands. Sometimes the pay period doesn’t always fall conveniently. That doesn’t mean I am lax in my efforts to collect but I usually get 95% of my rents in by the 5th.
With my lease, the rent is late at 5pm on the 4th, because many government agencies don’t get the rent to me until the 3rd. That’s really not significant regarding your question, but I thought I would throw it out there. Regardless of the day it is due, I don’t hunt the tenants down for rent. I collect rent during business hours on the first 4 days of each month. It is the TENANT’s responsibility to get the rent to me. I have the tenant’s call me when they have the rent in their hand and I will pick it up. I can’t say that I ever remember a tenant not being there, because I don’t go to pick it up until they call me. If they didn’t show up, that would be their problem and I wouldn’t contact them further until I posted the 3 day eviction notice on their door.
We have a 5 day grace period. After that it is at my discretion who will pay our late fee. It just depends, I have a lot of long term renters that we have been doing business with for years and I normally am lenient with most unless of course it gets to be a regular thing. We usually have 95% in by the morning of the 6th if not all.
I will say that this is a business first and foremost but part of that comes with a responsibility to act in a professional manner. That being said its up to you. Dont get me wrong if someone is really late then it is definitely necessary, but if its close then its your decision. Legally, you have the right to assuming that your lease contains the late fee and late period. Good luck
Rent should never be collected in person in my opinion. Set up a P.O Box and have them mail it to the box. Do you want to get hurt over rent money, I’m not saying you will, but things happen to good people. A friend of mine in Chicago was shot dead collecting rent. Not worth it. The more distance you have with the rent and renters the better. It’s just business. Give them envelopes with a stamp on it to avoid any excuses.
We do this also. My car was vandalized in the past by a tenant who though he should live for free after he stole from his job and got fired. If they can’t put an envelope in the mailbox every month, they need to find a new place to live.
Was he shot by the tenant or other people who knew he had money on him?
My rationale for collecting it in person was that if someone didn’t have a bank account, they might make a fuss about having to get a money order and mailing it. Has anyone had an issue with people objecting to mailing the rent?
I have never had someone say they had a problem mailing my rent. The problem comes in when you have low income property and tenants who are very bad at managing their money. They spend it the second it hits their hand.
And lets say that they only have a couple of months left on their lease when they started to develop a bad habit of not having your money. What do you do. Go get the rent on friday when you know they have it, and do that for the last couple of months until their lease is up which you won’t be renewing or go through the last couple months working on evicting them and get nothing?
And I don’t worry too much about getting hurt. I invest in low income areas which requires me to carry my 9mm on me at all times.
9mm???
Your brave man.
45 ACP with a blackhawk gun holster for me.
Then again, I own two houses on this street
http://www.news14.com/content/local_news/triangle/611692/police-seek-man-after-triple-shooting-on-raleigh-s-maple-st-/Default.aspx
And one on this street
http://www.wral.com/news/news_briefs/story/5213543/
You will see both of these happened recently, everyday life. I actually think the shootings are a good thing for the most part. Drug dealers shooting drug dealers. I wish they had open season so I could participate.
LOL, Open season would be nice.
Here is a great interview with Ted Nugent on the subject.
http://biggeekdaddy.com/miscvideos/TedNugent.html
On the 9mm, I carry +p rounds so I’ve got the same knockdown power as your 45 ACP without +p’s.
I too have property in the same kind of areas you do. A few of my properties have been hit by drive by’s. We have some pretty bad crime stirring up in Roanoke. Some bloods and crips gangs that are trying to show each other they are “real” gangbangers. But what else would you expect from a city who has let it’s education drop out rate get to 50%!
Beretta 9000S with .40 S & W JHP for me!
The problem I see with collecting the rent via mail is two fold.
Checks can take a long time to be returned for NSF and that adds to the time the deadbeat can stay in your house. I had one check take a full 3 weeks (I was SHOCKED) it could take so long. With cash, you KNOW that you have your money!
Low income tenants often don’t have checking accounts. When they get their government check, they cash it. Then, they either give you the money ASAP or they lose it/drink it up/buy something stupid/it’s stolen, etc.
Some of my best payers are low income tenants. They call me the instant they cash their check and pay me in cash! If someone wants the cash I’m carrying, they can try to take it!
Mike
Mike, If you don’t mind me asking, What % of your tenants are Sec. 8 and what % do you pickup the rent on?
TIA
AltCap
I probably have about 40% Section 8 right now. However, I pickup about 95% of the rents in person, even for my nicer SFHs. That allows me to see every property each month and talk to the tenants every month. That is VERY VALUABLE on a multitude of levels.
Mike
I don’t collect the rent in person ever. I automate the whole system and have most of my tenants set up on an auto deduct from their bank or with a recurring credit card check.
The first time someone is late, I give them a 3 day notice + late fees the same day. I have never had the same person late more than once. Why :banghead, when you can :biggrin
Stirling Gardner
EZ Landlord Forms
Hard to do that when tenants don’t have or use checking accts. Is there a form for that too on EZ LL Forms Stirling?
LOL, Hollywood, you’re joking, right?