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patadams

Registered: 05/16/07
Posts: 43
Reply with quote  #1 

Here's a tip that I had read when I first started the business.
Tenant is late so you charge a late fee. Tenant then pays you rent only and refuses/doesn't pay late fee.  You then feel stuck. Will courts allow to evict over unpaid late fees?
What you do is deduct all late fees and charges first and state this in your lease. So if tenant owes $500 rent and a $50 late fee and only pays you $500, send them an invoice showing $50 paid to late fee, $450 paid toward rent, they are now behind $50 in unpaid rent!  Now you have the leverage to evict over unpaid rent rather than unpaid late fees.
I have it stated in my leases this way under the RENT PAYMENT section:

"...Any payments received will always be first applied to outstanding balances, late fees or other charges, with the balance of the payment then applied to the rent due."

RentalPropertyRepair

Registered: 01/11/08
Posts: 43
Reply with quote  #2 
Always apply all payments to the late fees first and the remaining balance to the rent.

Once you do that, send a letter letting the tenant know they are in default of the rent and the balance must be due within, x amount of days.  You'll have to see what you area allows for time.

Then once that date comes and they do not pay, file the eviction papers.  You need to be stern with it otherwise they will walk all over you.

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Teliria

Registered: 09/07/09
Posts: 44
Reply with quote  #3 

I know this is an older thread, but I have just done a lot of research into this and here, in Oregon, the law does not allow you to do that.  

You have to credit all payments towards rent first, you can not do a 72-hour pay or quit notice for late fees and you can not require late fees in order to satisfy the 72-hour pay or quit.

Check with your local laws before doing this.

OHlandlord

Registered: 01/20/07
Posts: 3,537
Reply with quote  #4 
Your lease must list all fees (late, NSF, etc.) as "additional rent".  It should also state that any monies received go towards the oldest debts first, just as in any other business.  Then you only have to notify the tenant that the rent due next month is $xxx (which includes any fees).  If the tenant fails to pay the rent in full, you can evict on unpaid rent.  Run this by an attorney in your area and see if this would work for you.  You would be evicting for unpaid rent, not individual fees.
Aarav

Registered: 09/21/11
Posts: 4
Reply with quote  #5 
The customer who pays late because he's angry. Not every customer pays late because he doesn't have the money. Some customers act out their frustration with your company by being passive-aggressive. While your customer may not want to confront you about shoddy workmanship or poor service, he'll accidentally "lose" your invoice or "forget" to send in his check. The solution: Invite your customer out to lunch and ask him what he likes and doesn't like about your company's product or service. Once you fix whatever is making your customer unhappy, you may be pleasantly surprised by how quickly your cash flow improves,
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OHlandlord

Registered: 01/20/07
Posts: 3,537
Reply with quote  #6 
Quote:
The customer who pays late because he's angry. Not every customer pays late because he doesn't have the money. Some customers act out their frustration with your company by being passive-aggressive. While your customer may not want to confront you about shoddy workmanship or poor service, he'll accidentally "lose" your invoice or "forget" to send in his check. The solution: Invite your customer out to lunch and ask him what he likes and doesn't like about your company's product or service. Once you fix whatever is making your customer unhappy, you may be pleasantly surprised by how quickly your cash flow improves
,


ROFLMAO!  Invite your unhappy tenant to lunch.  Let's see, if I start now and invite one tenant per day, five days a week,...  I'll be finished (and broke) exactly how many months from now???  And if you only invite the upset tenants, won't that make the others upset that they didn't get a free lunch from you?  Give them an invoice for the late fees.  Put them as added rent in the lease.  And evict if they refuse to pay.  They agreed to those fees when they signed the lease.

Think the utility company will take me to lunch if I'm unhappy?  How about my mortgage company?  My insurance agent?  I'm unhappy now.  Who's offering to take me to lunch (er, supper considering the time...)!

SirCharles

Registered: 02/15/13
Posts: 1
Reply with quote  #7 

 

In Canada (Ontario) we can't do late fees.
But you can be more creative with bonus services for good tenants. The laundry only works when and if the rent is paid. You can charge a cash price for laundry on a separate contract service, and the rent of course comes first. If you can't pay the rent, you can't afford the laundry either, and so you won't take the money for the laundry until the rent is paid. Of course you need control over the machines (remote on/off plug switches inside-radio controlled). We are having problems and the laundry idea will be expanded to this radio control system. Cable could be on a different deal as well- bonus deal or extra cost contract(rent first). We often include Rogers cable and laundry with the apt but now we are moving into a reward system for good tenant. A package deal with strings attached.

As it is the laundry is not on the contract - so if they brake the machine we are not obligated to fix it.( we might even be so bold to remove it out of the aptment too for late rent).

 

sadiyakhan

Registered: 01/17/13
Posts: 22
Reply with quote  #8 
Nice information is shared regarding payment of late fee. It is one of the necessary factor.
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alexjhon

Registered: 02/23/13
Posts: 3
Reply with quote  #9 
If you fail to meet the payment deadline, you will be assessed a late payment fee in accordance with the payment deadline schedule.
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