What should happen when a tenant consistently pays rent late is the question for veteran property manager and real estate investor Hank Rossi.
Dear Landlord Hank:
I have a tenant that has failed to make his rent on time for 16 of the last 18 months incurring a $100 penalty. He eventually pays when his social security is due on the 21st. My question is should I keep assessing the fee? I was thinking I’d apply the fees collected as an additional security deposit. He is a good tenant aside from this issue. His lease is up for renewal in a few months and we could settle on a new rent payment date but I don’t want to do a mid-month lease start date.
– Landlord Larry
Dear Landlord Larry,
I would not assess late fees any longer if you know his rent is being paid from social security and that check doesn’t come until the 21st.
If he has been a good tenant for 18 months, if he renews again, I would change the rent due date to the 21st.
I know that is not convenient and I like to have all my rents come on the 1st but…….I’m willing to make exceptions for great tenants, at times.