| Most landlords struggle collecting rent from low | | | | However, in the first year you must be firm and |
| income tenants because their expectations are | | | | consistent. I do sympathize with them first and |
| much too high. These people are generally not | | | | listen to their story. This is important because |
| responsible or do not pay their bills on time. | | | | they will remember you were patient. I tell people |
| Now, you should not just throw your hands up in | | | | that we are not friends or family and therefore I |
| the air and just accept there will be one big | | | | can't loan them money. The rent must be paid |
| headache after the other. You simply have to | | | | first before any other bill. I tell them at least ½ |
| train tenants, set deadlines, and have responsible | | | | of the rent must be received by the 15th of the |
| consequences if they do not follow through. | | | | month or I will file for eviction. The rest of the |
| In order to be successful with these type of | | | | rent should be set up in a payment plan that |
| tenants, you must expect the rent to be late, | | | | would preferably be paid at the end of the month. |
| expect constant excuses, and for them to be | | | | The longer someone has been with me the more |
| irresponsible in almost every way. This is not to | | | | flexible I will be. Sometimes, I insist the rent must |
| say that all of these types of tenants are this | | | | be paid by the end of the following month and |
| way. I have many low income tenants that are | | | | other times, I set them up with $100 a month |
| quite responsible, pay their rent on time, and do | | | | extra rental payment until the past due balance is |
| what they promise me. However, the majority of | | | | paid. The key is to find a reasonable payment plan |
| them do not. | | | | once you know exactly what their financial |
| To collect past due rent, you must deliver a 3 | | | | situation is at the moment. The plan should also |
| notice immediately following the grace period. We | | | | adjust depending on how good a tenant has been |
| give our tenants until the 5th at 5:00pm as a | | | | up until this point. |
| grace period. I can't tell you how many landlords | | | | Delivering timely 3 day notices sends a clear |
| are extremely lax about getting 3 day notices | | | | message that rent is due. You need to do |
| delivered. You cannot expect people to pay on | | | | follow-up calls to determine if there is a problem |
| time if you do no consistently enforce your rules. | | | | or not. Sometimes, these tenants just are short |
| Once the 3 day notice expires, you should call the | | | | and need an extra week or two. Other times, the |
| tenant and set a "drop dead" date on when the | | | | tenants are in serious financial trouble because of |
| rent must be paid with the late fee. You should | | | | a sickness or major car repair. I suggest setting |
| always charge a late fee because the pain of | | | | up a payment plan that will work for both of you. |
| paying that fee will change behavior. Many | | | | Be careful of throwing out statements like, "the |
| landlords will waive the late fee at the drop of a | | | | rent must be paid by the 15th or I will evict." If |
| hat or never even ask for it. Once again, what | | | | the rent is not paid by the 15th and you do not |
| incentive does the tenant have to pay the rent | | | | evict, you have lost all credibility with the tenant in |
| on time? | | | | the future. |