The lease for renters clearly states that if they are more than a week late (usually on the 10th), a 5 Day Notice is automatically mailed, and they get a late fee added.

By the time that expires too (15 days) and they're that far behind, they basically are seeing it as having to come up with double rent for the upcoming month- and imo, a lost cause renter.

The 5 Day Notice at least in Illinois is required and to be expired before you can do anything about a nonpaying tenant, so I believe its important to get that sent asap.

So far, this has been enough to keep them in line and they've been paying the late fee. But its just a matter of time before somebody tests out the boundary.

In fact, I'm already having a tenant saying "I can't have rent this month until the 18th".

So what happens at the expiration of the 5 Day Notice, so they actually listen and follow it?

What I've told them is, after the expiration of the 5 Day Notice, we file with the County for non payment which is basically setting a court date, and they will likely be liable for those fees also. However, that involves me paying filing fees, perhaps giving them another month until court (whatever the county letter says) and then more money to have to try and recoup.

What is everybody else doing, at the end of a Notice which hasn't been followed?

As I said this has worked so far, but I see a weak link and not sure how to correct it.

And if you think my ways are outright foolish... then tell me what's worked better for you.

You're going to get a lot of variety of opinions on what to do here.

My state doesn't require pay or quit, and I can file for eviction the day after rent is due. So if rent is due on the 1st and not paid in full, I can evict right then. As a matter of practice, I give up to 7 days, at which point I file and all rent/fees/charges are due on or before the court date or we win an eviction judgment and set them out.

But you want to get paid, not boot someone out. Here's a possible solution: put them on the pay day rent plan. Here's how that works.

Tenant: "I can't pay until the 18th."

You: "Bob, I'm sorry to hear that, but as you know we have to have the rent paid and we can't wait 18 days. The owners simply won't let us and we have to keep them happy. Tell you what, let's split your rent payment in half and you pay 50% today, then in 2 weeks when your next paycheck hits, you pay the same amount again. There is a $50 paperwork charge for this, but that is much cheaper than the late fees and court filing costs you'd otherwise own and it keeps you paid up on time. In fact, if you like we can just set up your payment to be due every 2 weeks."

The bottom line is tenants often CAN pay, but they see the LL as the path of least resistance. So many land lords let their tenants walk all over them and dictate the terms of when and how much. Professional businesses do not do that. It's your job to set your expectations and demand to be treated like any other business. YOU offer a solution that is acceptable to YOU, and that makes you extra money for the trouble.

How do you get extra money? The $50 paperwork processing fee for starters. Also, 26 half rent payments per year equals 13 full month rent payments. Cha-ching!

Be sure it is clear they pay EVERY 2 weeks...not twice a month. Some months have 5 Fridays, and they need to get used to the fact that they are not paying 3 times "this month"...rather, they are paying once every 2 weeks. 3 half payments = 6 weeks' rent, not one and a half month's rent.

Hey Triplexer

After purchasing around 100 low income units from lousy unprofessional landlords, I HAVE TO RETRAIN THE TENANTS ON THE IMPORTANCE OF PAYING THEIR RENTS ON TIME.

I set up a system for this. I first issue "NOTICES OF CHANGE OF TERMS OF TENANCY". The rent checks needed to mailed so the post mark is on or before the 1st of the month. The tenant may attach a note saying, "Please hold until the 5th of the month, funds need to clear". So long as the check is received on or before the 5th of the month, there will be no late fee.

Checks received with a post mark after the 5th, will be subject to a $25 late fee, plus $5 for each day after the 6th.

Tenants that will not have the entire rent by the first, must call the landlord and agree to pay half of the rent by the 5th and the balance before the 15th of the month. Failure to contact the landlord and make the two payments on time will be give a 3 day notice, followed up with an eviction.

Tenants that pay their rent on time, will not receive a rent increase after the first year of tenancy and will receive a free apartment upgrade (appliance, a/c or gift certificate).

If they can't pay the full amount till the 18th, find out what they can pay today. You might want to offer an incentive for having them make at least a part of a payment by offering them a discounted late fee.

Robert hit it on the nose.....It about training.