One of the most common points of tension between a landlord and a tenant is when they fail to pay rent on time. How does the lease specify that you handle late payments? What documentation do you send and when?
How do you deal with late rent on your South Atlanta rental without feeling like the “bad guy?” You must follow the proper legal steps to collect the rent, and if no rent is paid, initiate the eviction process.
1. Double Check the Lease
You must follow the legal, agreed-upon process when your tenant fails to pay rent. Does the lease allow a grace period of three to five days? What is the late fee?
When the payment is officially late, follow the procedure you outlined in the lease. If the tenant calls or comes to you with questions, refer to the lease.
Sometimes, tenants will argue a late fee is too high, but it’s a reasonable percentage of the rental price. Most late fees in communities are limited by area rent control ordinances, so ensure you always follow the law. If you don’t charge a late fee, you cannot retroactively change your mind.
2. Issue a Late Rent Notice
You must alert your tenant that they have missed a payment. The late rent notice is a simple reminder that the rent is past-due and outlines a list of all owed fees, including the late fee, with a warning about legal action should the tenant fail to pay. You can serve the late rent notice in person, email or tape it to the door.
The notice helps prove a pattern of past-due payments, but this interim action shows that you have taken fair and legal process of attempting to collect the delinquent payment. Sometimes, it’s a simple issue of forgetfulness or the tenant may have experienced a job loss or personal issue. Unfortunately, this does not excuse a late payment. Always keep a copy of the notice for your records and court proceedings.
3. Keeping Records
Keep an updated and accurate records of when all payments are received as well as how much money was received. For late rent, avoid accepting partial rental payments as it can be viewed as a payment in court and derail an eviction trial, effectively starting it over.
What about a roommate situation? Everyone on the lease is accountable for the full amount due, not a partial payment, unless otherwise specified in the lease itself.
Not paying rent is a breach of contract, but always keep your efforts to collect rent cordial and legal. Never harass or intimidate a tenant for late rent payment, which is illegal, and keep records of all communications. Your communication records should also include copies of all emails and recalled details of your spoken conversations.
4. Dealing With Bounced Checks
Contact the tenant immediately when a check bounces. In most cases, it is a simple accident and easily corrected. If the issue is not immediately fixed, notify the tenant that the bounced check is considered late rent, and associated fees will be assessed, which includes applicable late fees, and sometimes, a returned check fee.
However, you cannot charge a returned check fee if it’s not mentioned in the lease.
5. Issue a Pay or Quit Notice
While a late rent notice is a reminder, a pay or quit notice is technically the very first step in the eviction process. The notice must convey the intent to evict, outline all money owed and the deadline by which to pay. An eviction attorney can also draft the letter on your behalf.
When it comes to this notice, states have specific requirements about where, when and how you must post an eviction notice. In court, you must show a good faith effort to ensure the tenant received the notice. The landlord or their agent can personally hand the notice to the tenant, post the notice in a conspicuous place or send the notice through certified mail. Do request a return receipt.
Filing an Eviction Lawsuit
Hopefully, a pay or quit notice is enough to jar the tenant into paying. Unfortunately, sometimes an eviction is necessary.
The landlord has to obtain an order from a judge to legally evict a tenant. You must go to court and cannot simply throw the tenant out and change the locks. Technically, this “self-help” eviction is illegal in Georgia.
Dealing with late rent on your South Atlanta rental can cause a point of tension between you and your tenant. So, focus on the legal process and remain cordial.
Consult the Georgia Tenant-Landlord Tenant Handbook, issued by the Georgia Department of Community Affairs, and an attorney for more legal information.
Know that you can trust in us at PMI South Atlanta to handle your Riverdale property management with dedicated care.
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