Dealing with a Late-paying Tenant
Landlords can typically begin eviction proceedings as soon as the rent is officially late. The rental agreement should clearly define on what day the rent is due, and what day it is considered late. If rent is due on the first, you may decide it is late on the fifth, the third or even the second day of the month.
When a tenant fails to pay rent on time, the first step is to deliver the “Three Day Quit Notice,” informing the tenant they have three days to pay or they must quit—or vacate—the property. Check your state’s regulations to find out how many days’ notice a landlord must provide—it varies from three to five in most states.
Because eviction proceedings can take time, it’s usually better to start as soon as the lease is broken by non-payment of rent.
Experienced landlords often describe their reluctance to give notice when they were first in business. “Not anymore,” said Roger, a multi-unit property owner. “I used to wait a week or longer before I served notice, thinking the rent would come in. Now I deliver the notice on the 3rd of the month if rent has not been received.”
Depending on your tenant’s circumstances, delivering a pay or quit notice may seem harsh; but in keeping to the letter of the lease, a landlord is completely within his or her rights to serve it. Informing the tenant that the notice is required whenever rent is late is as much explanation as needed.
Consistency, as always, is important. Giving one tenant more time to pay than others before serving a pay or quit notice could be interpreted as discriminatory. Besides, having consistent procedures makes running your rental property business easier—each situation is handled exactly the same way, every time.
After the notice is served, the tenant either must pay, vacate, or face eviction.