Nearly every landlord has his or even her personal approach to late rent problems, but acting at full pelt is not the best solution beyond this situation. Property owners who act in response hastily may put their business at risk of causing damage to the property or home by tenants, while being too soft may lead to recurrent infractions, therefore the level of late rent charges can rise to a greater level than the agreed security deposit.
Considering all objective factors, there are plenty of concerns that need to be addressed before taking any actions relating to missed rent collection:
Take action Strategically
The starting point to take going through the overdue rent problem is Late Rent Notice. Submitting this reminder is your first legal action towards acquiring in arrears from a tenant. A late rent notice should only contain factual information and must not include complaints about your renter. This notice needs to be based on the contract or rental agreement and also set out the amount of the rental price, the due date along with the fine for not paying for the rent. You can’t charge more than it is specified in the lease for a missed fee. Whenever this notice is dismissed, try to set-up a meeting to talk over why the tenant wasn’t in a position to pay out in due time, perhaps there will be some emergency scenario. In cases like this you could possibly propose a payment grace time period – you can never predict what exactly is going on in your renter’s life.
Will I Be Able To demand the late fee?
You may not enforce late charge to your tenant, unless the contract includes a behind schedule charge clause, or even should you not have notified tenant with regards to the policy while entering into an oral agreement, no matter how acceptable those extra costs are. Before signing a contract with your tenant, make sure that late fee clause is discussed clearly in order to prevent evictions. To begin with, check your local laws and regulations, certain states don’t allow for house owners to impose missed costs, other limit their total amount. This amount needs to be based on the rental payment as well as should fluctuate around the 5% of month rental price.