How do you deal with slow paying tenants each month?

I know everyone here has at least one tenant that just can't seem to pay by the due date. And when they eventually pay, they usually stiff you on the late fees. It is irritating.

Today, I am posting two P/Q notices on my slow paying tenants. It seems the only thing that motivates them to pay rent at all is my P/Q notice (here P/Q's notices are 7 + 1 day) before eviction papers can be filed. The tenant that I am evicting right now has received a total of 15 P/Q notices over a 2-year time period.

Again, how do you deal with your slow payers?

GKARL,

I paid $151.25 yesterday ... it's based on number of people and dollar amount of your claim.

Some tenants are simply programmed to not want to pay. They won't answer the door or phone. Part of my process is to serve a carefully composed collection letter (text below). At the risk of sounding bragadoscious (sp?) this letter gets a better than 90% response regarding getting a call back. If they want extra time - say the 15th - I ask them to quickly get a check to me - dated today - and I will deposit it on the 15th. In NJ and PA, a dishonored postdated check is considered a promissory note and not a "bad check". If I don't get a response, I figure this is when they plan on getting their "free month" and I immediately file for eviction. If any of you use this tactic I'd like to hear of your experiences. Good luck.

==================================

September 8, 2017

From: me

my address & phone numbers

To: tenant

re: past due rent

Dear tenant:

Your rent was due on September 1 and has not been received yet.

I sent you courtesy reminder text yesterday but you did not respond.

It's important that you contact me regarding this not later than 1:00 PM on Monday, September 11, 2017.

If you reach my voicemail when you call, please leave a detailed message with 2 ranges of times (example: 8:00 AM thru 11:30 AM or 7:00 PM thru 9:00 PM) when I can reach you by phone WITH YOUR PHONE TURNED ON so I can speak to with directly.

This letter was hand delivered and posted on your door on September 8, 2017.

Very truly yours,

Roy,

Wifey and I were just talking about one of our rentals as we were "driving by the area" on our way to vacation yesterday. I said "glad we have good, solid tenants now and I no longer have to BEG for our rent from so and so".

She said "yeah, I wonder if he's paying where he is now".

I eventually did get him to pay everything (including the late fees). Took him to court TWICE and even "worked" with him (don't go there with me) for the better of 3 years. In December of 2016 I finally had it and told him to pay up or get out - I'm done". He got out.

I spent about a month or so cleaning out, cleaning, painting, refinishing floors, running new electric and gas lines (just getting things "right") and really getting the place looking great.

I now have a nice couple in there that pay ON-TIME and usually early/before the 1st. I actually received the rent by the middle of the prior month due a few times.

I "upped" the rent and I took my time getting the right tenants in there.

I only get my checks in the mail from the tenants at this property now. Once in a while I get a text from them asking if I have other places available in town as their "brother/sister/friend, etc" are looking or if something may need fixing (which is rare). The same goes for the other tenants in the building - all on or before the 1st, no issues with rent AT ALL.

Making $70 per month MORE than I was this time last year ($840 annually) just at this one property. All on time/before time with no drama. Life is good.

So long story long Roy: Sometimes it's ok to "work" with them as long as they are doing what they say they are going to do. There is a charge for it though - they MUST pay the late fee. That was the one thing I stuck to with that one tenant "OK but there will be a fee for this that you MUST pay". I had to also build a quick little spreadsheet so I knew what was owed and what he paid because he paid throughout the month portions of what he owed. Promised me everything and delivered on mostly none of what he said. I finally said "I can't do this anymore". I set myself free.

If someone is a habitual slow-payer, I non-renew them if they are on a lease or get rid of them via a 30-day if they are MTM.

That being said, all of my new tenants are required to pay via bank draft on their due date, so I don't have any slow payers out of those.

The tenants I am referring to paid rent on the due date for the first 12 months of their lease which means they are capable of paying on the due date. It is during the 2nd year in which they are now paying late each month. This is what I do not understand.

Just got a slow payer of mine to sign up for weekly rent via Payday Plan.

Roy did you ask them why they are late or did they "offer up" a reason? How long has it been happening (that they are paying late - and how late are they)?

The "how late are they" question is that some that I've found feel that if they are "only" a few days late AFTER the late fee is due - think it should be no problem.

Roy,

We get what we allow.

My business turned a corner when I realized there are no slow to pay res , only slow to act LLs.

ZT works. We send a 3 day text and they pay. In Oct we sent 3 texts, down from our 27 average before ZT. One replied he had moved out (skipped). Better to know that now rather than on the 10th! 2 said "Sorry" and paid. Done.

Late fees are not optional or up to "choice".

Send the 3 day text AND mail the 7 day letter on the second.

Test me on this. Almost all will pay within the 3 days,with late fees.

BRAD

I had once at the drove me crazy. Let pay the late fee every month, but I got to be annoying serving the five day all the time. Problem was, they learn to build in the late fee which was only $25 into their budget.

So I modify the lease to read it was a $50 late fee work plus $10 a day. Suddenly it was no longer in their budget to pay late.

I explained to them at move-in, if the rent is paid after the third, there needs to be the $50 late fee with it. Period.

I haven't not had anyone NOT pay a late fee in years and years. If they're late, they pay the fee.

I have on more than one occasion have the "come to Jesus" speach with a couple of them. Start paying on time or find another place to live.

Do you still like those class Cs?

Blue said "Do you still like those class Cs?"

I have no choice here,...80% of my town is blue collar/working class which means 80% of my tenant pool is Class C's. It is either love it or leave this town for another tenant pool.

Roy, 12 out of 14 on time is pretty good! 14% late payers is not unusual in the Class C hood. I think you're doing a good job by keeping on top of them. If you get too sick of it...then non-renew or evict.

We all have various versions of ZT, and mine is late on the 2nd, $5 per day fee, and I file once we get over 7 days "in the hole". So if rent is $500/month, once they're behind $117 I file. I don't include the late fees on that calculation. I do it this way because if folks want me to wait to file, I tell them I need at least $X or I have no choice. I never want anyone more than 1 week behind.

Even with that, I have a few late payers who tip-toe up to the edge almost every month. One tenant has paid me over 1 month's additional rent in late fees alone during her 2.5 years with me.

Out of 24 I have one that is always late, I keep wanting to get rid of them my business partner is wishy washey about it.

I'm tired of chasing it.