I have a lone rental left with weekly rents. The couple moved into a 1BR in February 2007. In 2011, they moved within the same duplex to a much larger 2BR unit. They did great with the move, getting all their deposit back except carpet shampooing because they have 2-3 cats. They started with 1 cat...but.

They are both PhDs who never want to own. The entire yard is a well maintained garden and the woman who works as a waitress/bartender has made great referrals to me for other tenants. Unit is clean always and they call about real problems in a timely manner.

So the catch? Their rents are due every Friday and they used to pay every Monday just before my late fees begin on the 4th day. My late fees escalate $5 each day. I last raised their rents in May 2017 and they are about $50-$75 per month under market. In the last year they have begun "slipping" and they usually pay rent on Tues without a late fee. Wednesday is also not uncommon and a few Thursdays. They have not paid on Monday in months.

I have served them written notice twice offering monthly rents or automatic funds transfer and I also gave notice that when I charge them late fees and they fail to pay, I am still adding it to their account and tracing it, and I still expect rents to be paid when due. I send invoices so they can track late fees. One day, it will reach an amount I might want to go after. Or they may even not pay by the next Friday and I can serve a Pay or Quit( I am waiting for that chance actually).

So this is a battle I wont win. They are great tenant's other than this, but I am so serious about Lease adherence.

I am increasing their rents by $5 per week next month to get them closer to market. I will again offer a monthly option which adds up to less than weekly as an incentive.

What would you do?

What you’ve described is exactly why I only accept new tenants who pay by electronic bank draft initiated by me. That avoids the slippage.

Assuming your lease specifies rent is due Friday and there’s a late fee if it’s not paid then, here’s how I would handle your situation. If you haven’t done this, send a letter reminding them that rent is due on Friday and that going forward there is zero tolerance for late payments without the late fee. The first Friday after they have received the latter send them both a text bright and early in the morning that rent is due that day and there will be a late fee if not paid that day. After that if it’s not paid on Friday send them a text Saturday morning saying rent hasn’t been paid and ask when they can pay it. When they respond remind them to be sure to include the late fee.

Lana,

If this were happening to me, and it did plenty of times, it is all MY fault. Totally.

I got what I allowed.

And I used to allow this.

I can talk to them til blue in the face and it won’t change a thing.

Why this never happens again in my biz:

-my lease is clear: ‘management does not accept late or partial payments

Unpaid balance of rent and fees is considered rent and grounds for eviction.” They learn this at lease signing.

-we send the 3 day text on the day it’s late. They pay. They just pay.

-we no longer WAIT for the res to decide to pay. We TAKE the rent from their account on the day it’s due. Residents LOVE this. They HATE paying for money orders and having to deliver rent. It’s the 21st century.

-Indiana does not require a grace period. When I got rid of mine we only had 55 rentals and not a single person complained.

-grace period confuses the res. “Rent is due but not really due but just pay it whenever.”

-under market is mu fault. So I went thru and raised everyone to market. They paid. Only ONE out of XXX took this as his excuse to move out.

J have me the COURAGE! I make an extra $3649 per month because of the increase.

-our weekly rents bring in top dollar. $600 / 4 = $150, add $10 = $160 due each Friday,

x 52 weeks = $8320,

which is $1120 per year more than 12 x $600 = $7200 with monthly rent.

This is what I do.

BRAD

PS

The PHD is waiting tables???

The trouble that comes with weekly rents is that many services don't allow that.

For example, Brad mentions that he TAKES the pay on autodraft from their account, but with say Clearnow (promoted on this site) they don't let you take weekly amounts. Biweekly is as frequent as they allow.

Kurt,

2?? years ago Clearnow did not handle biweekly. My guess is enough customers asked so they made a change.

Ask them and get Jeffrey to ask.

I don’t see what difference it woukd make to them, it’s all just computer blips at their end.

I have some weekly and bi-weekly payers that pay late. When they do, they pay the late fee. I do not give them an option not to pay the late fee.

If they owe $200 rent on Friday and don't pay, they owe $230 on Monday ($10/day late fee). If they pay $200 on Monday, they still owe $30, so they get a late fee on Tuesday and owe $40. This is explained in my lease and if a tenant does not listen when it is explained at move in they understand it the first time they get the late fee notice.

When you increase the rent, also remove the grace period to remove confusion. And, include your new Brad inspired "Zero Tolerance Policy" for late payments explaining rents must be paid on the due date going forward. Then, enforce it, if they don't pay on time, charge your late fee. If they send a partial payment, the late fee continues. If the balance continues to build up, file for eviction.

'nother thought...

In Indiana you can end a lease with 30 days notice.

MY judge says there is a difference between monies RECEIVED and ACCEPTED. They make a late payment, we RECEIVED it but we do not ACCEPT it by depositing it.

We take it to court to prove we have not ACCEPTED it as payment.

We don't let their debt build up. Nip it in the bud!

BRAD

Especially today with apps like Zelle, Venmo, PayPal and online Bill Pay with their bank (all banks offer that!) there is no reason for late rent.

We removed grace period from our leases a l o n g time ago. As Brad says, it only confused the issue. By law I can't charge a late fee until rent is five days late, but paying the late fee doesn't make the rent NOT late. So I tell tenants up front: rent is due on or *before* the 1st (or whatever their due date is) not AFTER. I tell them flat out I don't want late fees, I want the agreed-upon rent when due, just as they expect *their* paycheck when it is due.

My lease includes a waiver of notice so that if they do pay late, I can file for eviction for breach of lease rather than non-payment of rent without further notice to them.

Clean house, yard looks good, $50 under market rent.

I'd raise them $10 a week to pay me for the nuisance. I don't issue the pay or be evicted until day 5 and they are still in that time line.

"Clean house, yard looks good" is hard to come by.

I'd also give them a written notice that I'd hate to see them go, but if they don't get the late fees paid up to date I would give them notice to leave.

Brad,

I did e-mail them (ClearNow) once asking about weekly collection.