Today we’re talking about late rent payments, and what you need to remember is this: without a deadline, nothing happens. It is very important to have deadlines when you’re dealing with tenants in your rental property. Setting deadlines with tenants regarding their obligation to pay rent is absolutely necessary.

Set a consistent and serious example. Tenants need to know that the late rent penalties stipulated in the lease are non-negotiable and there are no acceptable excuses for not paying rent. Landlords who manage their own rental properties often become emotionally involved and they tend to bend a little too far when tenant problems occur. Unfortunately, many tenants are willing to take advantage of such easygoing landlords and they know how to work these situations.

In Kentucky, rent is due on the 1st day of the month. If it is not paid by the 6th then there is a $100 late fee. Under no circumstances should you waive that late fee. If a tenant pays after the 6th and doesn’t pay the late fee, the rent should be returned to the tenant immediately. At that point, you should tell the tenant that the late fee needs to be included in the payment, or the eviction process will begin immediately. If you allow the tenant to get away with paying rent late but not paying the late fee, you are encouraging them to be late every month.

Sometimes, tenants will tell you they will pay you on the 10th and on the 10th they tell you it will be on the 15th and so on. You need to put an immediate end to that technique. Our practice is to give them a Pay or Vacate notice on the 7th with a $100 late fee added to their rent. On the 15th we file a Forcible Detainer or ask for an eviction court date. On the 15th we also start charging $10 a day in late charges. Then on the court date if they bring in the rent we refuse to accept it unless the pay the next month’s rent in advance. Of course our tenants know all this in advance from our orientation. Make sure you explain the process to the tenants so they know what to expect.

Accepting credit cards by phone is one way to avoid late rent situations. With the ability to accept credit cards, tenants have an additional option to prevent an eviction. This has worked for many of our tenants in the past.

If you have any questions about avoiding late rent, please contact us at Hillcrest Property Management, and we’d be happy to help you.