Do Your Tenants Understand Grace Periods and Rent Due Dates?
It can be very frustrating to landlords when they do not receive rent by the first of the month. Like any business owners, landlords have bills which they need to pay and not receiving rent on time can force a landlord to dip into reserve cash or even pay their own bills late. While it may be impossible to prevent all tenants from paying rent late, a landlord or property manager may be able to reduce the number of late rent payments through simple education of tenants.
Part of the reason why some tenants give rent late is that they believe they have some leeway or do not even realize the exact date rent is due. Whenever the due date is, make it clear both verbally and in the lease. Your lease should also stipulate when rent is due if the due date falls out on a holiday or weekend. Most leases require rent to be paid on the first business day after the weekend or holiday. Some landlords may still require rent to be due on the first of the month even if it falls out on a weekend or holiday. However, based on the state law this may be illegal so be sure to check your state’s rental guidelines if you plan to make rent due even if the due date falls out on a holiday or weekend.
If your one of the majority of landlords that requires rent to be mailed to them then it is important to relay to your tenants the rental check should arrive by the rental due date. Many tenants think they just need to mail their rent by the due date so you need to make sure it is clear that this is not the case.
One of the best ways to ensure that rent is paid on-time is to assess late fees for late rent. Ensure to include late fee clauses in your lease or rental agreement. In addition, you can also send a termination notice letting tenants know that if they do not pay rent within a certain amount of days you will begin the eviction process.
Property management software also helps landlords easily identify and respond appropriately to tenants that pay rent late. RISSOFT’s Affordable Property Management Software has several features that make managing multiple properties less time consuming and more organized.
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.
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