How to Collect Late Rent From a Tenant

If you own or manage rental property and are responsible for collecting rent from tenants, there will be times when you will have to deal with rent being late. It is important to be consistent in your actions when dealing with the collection of rent.

Instructions

Difficulty: Easy

1. Set precedent the very first time that rent is not paid by the due date or the grace period indicated in the tenant's lease. If you start accepting excuses the late rent problem will continue, and maybe even escalate.
2. Keep all communication to tenants in writing. This will help to eliminate communication problems and will be necessary to produce if you end up in court with the tenant. A letter should be mailed to the tenant the first day after rent is due. This is your first attempt to collect.
3. Charge the late fee if one is specified in the tenant's lease. Include in your collection letter that the fee is being charged and how much the new amount owed is. Do not make deals with tenants on late rent.
4. Send a series of notices to the tenant if rent is still not paid. Date the letters as proof of when they were delivered.
5. Mark the dates on your calendar to help you keep track. Be sure to keep copies of all correspondence that you mail out.
6. Find out your state's laws for eviction of tenants for non-payment of rent if you are not already familiar with them. Most states have strict guidelines for time periods that must be given for the tenant to pay rent. Many states also require that you serve the tenant with a "Notice to Quit" before you can appear in court.
7. Start eviction proceedings in court as soon as the law allows. It is important to let the tenant know that you intend to follow through on their failure to pay rent. When you get to court the courts will order the tenant to pay the money they owe to you or move out of the apartment.

Tips & Warnings

• Owning or managing rental property is a business. It is important to always run it as a business and not get emotionally involved with tenants.
• It is extremely important to be knowledgeable of the law and to follow it precisely. Failure to do things in compliance with laws can result in a lost court case or a counter suit by a tenant.