Late rental payments can be very stressful for landlords. If the tenant is unable to pay on time, the landlord will have to pay the bills late. There are unfortunate circumstances sometimes when a tenant cannot pay rent like unemployment, or a tenant spent their money on a medical emergency. The landlord can overlook these incidents because they are valid reasons. But what about those tenants who make it a habit to pay rent past the due date? Or even worse, not pay rent at all?

As a residential rental agent, you have a role in informing the tenants of late payments and the consequences of it. You can help the landlord in letting them know how important it is that they pay the rent on time. The first thing a landlord may think about is the option to evict the tenant. The thought can be tempting, but the eviction process has to follow the correct manner. Before a landlord considers eviction, he should make sure that he did all the necessary steps to get the payment.

Step 1:

From the beginning of the transaction, the landlord, or the real estate agent, should acquaint the tenants with the rules and policies. They should let the tenants know that they are to pay the rent without delay. It is best to set clear margins earlier.

A landlord has the option to charge a late fee for any delays, and this must be clear in the lease agreement. A late fee can be added to their payment if they are unable to settle it at the given deadline.

Step 2:

The landlord must not avoid this step and jump to the eviction process. It is not the correct way to do it. If the tenant is unable to pay, the first thing to do is remind them. A notice of late rent can be given to the tenants as a reminder, and the landlord or his representative must sign it.

There are a lot of reasons why a tenant fails to pay rent, and it is the landlord’s job to identify these. Here are some examples:

As I have mentioned, the tenant may experience financial constraints. The best course of action is for the landlord to negotiate with the tenant to determine a compromise. The landlord can give them an option to pay their debt gradually by adding a percentage of the amount to their monthly rent. The tenant will most likely pay the rent, but it will take some time. It will be a shame to lose a good tenant only because of a temporary unfortunate incident in their life.

There are times when a tenant’s check does not go through, and the landlord must inform the tenant as soon as possible. The landlord can also ask for the bank to check again and ask the tenant to write a new one.

If the tenant refuses to pay the rent, it is the landlord’s job to ask them why. There are instances wherein a tenant is allowed to stop paying rent. It is when the landlord is unable to repair reported damage in the property. If this is the case, the landlord should compromise with the tenant that he will take care of the damage, and they will pay him after.

Step 3:

Unfortunately, some tenants might still refuse to pay rent or has no means of continuing to pay rent. If this happens, the landlord can now push through with the eviction process. Make sure that they are aware of the correct procedure which follows their state laws.

Evicting tenants is supposedly the last option. It will not only be stressful for the tenants but also the landlords. However, there are instances when it’s inevitable. If the landlord does evict a tenant, the best thing is to move forward and try to fill in the vacancy with good tenants. When you start filling in the vacancy for them, start by creating a property listing on Padleads to attract potential tenants. Syndicate it to other hihg-traffic websites, so you’ll get more chances of finding a replacement.