It is extremely hard to be successful in anything you do not put your full attention to, especially real estate. If you are not on top of tenants for rent, other priorities and bills get in the way for them and they are late on rent or cannot pay. You can be nice and lose significant income, teaching the tenants that rent really is not that important, or you can call them on the 11th, demand late fees and start eviction paperwork promptly. We at Ironclad Property Management, understand that while all tenant’s are different, all tenant’s follow similar behavior when it comes to not planning on paying rent. In general there are one of two types of tenants:
- Liars: These tenants will tell you that they have the rent when they do not, that they will put it in the lockbox when they will not, etc. They are trying to lie to get out of their problems.
- Hiders: These tenants will not reach out to you when you text, email and leave voice messages. They are trying to hide from their problems.
Luckily dealing with liars and hiders is done the same way. You be very firm with when you need rent by and if not, you are going to start the eviction process. When the date is missed, you start the eviction process. I consider this to be firm but fair.
Continually giving grace to tenants that ask you to waive the late fee only encourages tenants to continue to pay late, so do not do it! Follow these steps and you will have much better rent collection success.