Do you have tenants that are constantly late no matter how many times you remind them to pay on time? If so, you are probably looking for some solutions. Unfortunately, you cannot force people to pay on time, but there are some things you can do to help yourself in these unfavorable situations.
First, you should always check your state statutes. It is important to know what you can legally do at any given time to protect yourself and your business. You should check for how much you can legally charge for late fees, and how long you must wait to send a unit to lien status, or auction. If you know what you can do then you have more power to take control!
Next you should have your policies clearly spelled out in your lease agreement. When a new tenant moves in you should go over the lease agreement with them and be sure to touch on your policies about late fees. Being up front and telling your tenants that you do not take late payments lightly and you do not waive late fees will be good incentive for them to pay you on time. Furthermore, you can offer things like a 10% discount to customers who sign up for autopay as a way to ensure you will receive payments each month in a timely manner.
For those troublesome people that refuse to sign up for autopay and never pay on time you have a few different options. The first option is to give them notice and make them move out. This will save you the headache of tracking them down each time they owe you money. However, you will lose out on the extra income from the late fees. Always remember to check your state statutes and the lease agreement to make sure you are in compliance with laws and not breaching a contract.
The second option you could consider is raising your tenants rent. This could be especially useful if the tenant has a discount, or an old rate that has since changed. Raising rent could be the reason that you ultimately get them to leave and in the meantime you are collecting extra revenue. However, just as with any other situation you should check the laws in your state and make sure you are in compliance.
Finally, you can let them stay and keep collecting the late fees. This means more money for you and your business. Be cautious though, because it will cause a lot more hassle for you if the unit goes to lien status or auction.
Ultimately, the decision is up to you based on how you want to run your business. The most important thing is to make sure that you are following all of the laws in your state & that you are doing what works best for you. Good luck!