patadams
Registered: 05/16/07
Posts: 40
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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." |
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RentalPropertyRepair
Registered: 01/11/08
Posts: 43
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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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To inquire about our services you can visit us online at http://www.RentalPropertyRepairLLC.com. |
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Teliria
Registered: 09/07/09
Posts: 33
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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. |
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OHlandlord
Registered: 01/20/07
Posts: 1,836
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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.
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