I’ve busted my ass so that I could by my first triplex at 25.
The units were already rented, we touched bases with them at the beginning of the month for transfer of ownership, got the new leases signed, and made it clear rent was due the first. One tenant even paid a week early.
It is currently the 4th, one unit is already late the first month of ownership, and he promised up and down that he’d have rent today because “his check got delayed to Monday by Columbus Day and he’s only paid once a month.”
How long do you guys extend rent, I’ve already told me just to get it to me by today, what are the steps I should take if he says he can’t pay today, what should he the grace period, and what are the next steps if the requirement are not met.
What I do is give a three-day grace period. Rent is due on the first, the tenant has a few extra days in case something comes up. On the 4th of each month the late fee of 5% is added. Do not make exceptions for your late fee, it’s not personal, it a business. I also wrote in my leases that if a pay or quit notice is delivered, there is an additional fee plus the late fee.
@Orion
I asked the other guy, I need more information on these pay or quit forms. Where can I get more info, on these, and where can I see one to read it?
Indra said: @Orion
I asked the other guy, I need more information on these pay or quit forms. Where can I get more info, on these, and where can I see one to read it?
Double check your local laws for how many days you have to provide. What you want to do is try communicating with the tenant to see if an agreement can be made in the coming days. If not, you want to move forward with the notice. You can find a template online through searching it. You should deliver it via certified mail or pay a small fee to have your local sheriff deliver it. This way the tenant can’t say they never received it. If the payment is not received by the end of the notice period, you’ll want to evict.
Indra said: @Orion
I asked the other guy, I need more information on these pay or quit forms. Where can I get more info, on these, and where can I see one to read it?
“Idaho Code § 6-303(2) defines and discusses when eviction for non-payment is appropriate. To initiate the eviction process, landlords must first serve the tenant with a three-day notice to pay or vacate.”
Indra said: @Orion
I asked the other guy, I need more information on these pay or quit forms. Where can I get more info, on these, and where can I see one to read it?
Indra said: @Orion
I asked the other guy, I need more information on these pay or quit forms. Where can I get more info, on these, and where can I see one to read it?
If you just bought the building, did your due diligence include rent rolls from these tenants? That would give you some insight as to their pay history and guide you as to how hard to hammer.
Pay or quit is the way to go. If they pay, all is well and you go on uneventfully. If they don’t, you’ve started the clock toward the eviction process. Delaying starting that clock doesn’t serve you well, even though issuing a pay or quit may seem a bit harsh so early in the relationship.
“… we touched bases with them at the beginning of the month for transfer of ownership, got the new leases signed …”
Congrats on your accomplishment! You must have probably researched the variables surrounding your (what some people call "passive" investment; although it’s not such a thing), and this is venting frustration of having a tenant be late on payment.
You are a landlord now, with a business regulated by Federal, State, and Local regulations (whichever might apply).
Look at the rental agreement terms you and (each individual unit’s) tenant have signed; that is what you go by, follow what is outlined there concerning payment’s timing/lateness/consequences.
Generally, relying on verbal promises (such as, check is in the mail) is not a good path to follow. Steps you take when overlooking one tenant’s breach of contract vs another present or future renter could carry some adversities in time. Careful, seek legal advice as needed to see options on your legal contracts (you have an investment to protect).
@Echo
I’m not frustrated or venting at all, it’s just business and,“Passive income” was never my intention. Extra Income was my intention since I’m completely debt free and have been doing my due diligence with a brokerage account, and retirement accounts.
The comment about working my ass off was more of a,“I’m proud because I did this with all my own money, and my own credit, now I want to protect it.”
I am at a point where I don’t know what I don’t know, and I’m trying to gather information from other’s to learn about industry standards and expectations.
Previous rental agreements, they appear to have paid, however it was run by a guy who did this full time, and apparently was on everything like stink on shit and hoping to get the system going.
Offer to reset his rent due date to the 5th. He will be more likely to keep the commitment and you will have less stress. Offer him a chance to make auto payments on that date, or before, so that there is no check to pick up or bounce. Part of being a landlord is learning to keep long term renters that respect the property and pay on time. Some times that means you have to think of ways to make it easy for them to pay you. For a renter that gets paid every two weeks giving them the option to pay every two weeks could make things easier for everybody.
Bao said:
Columbus day was three weeks ago, time to file the 3 day pay or quit notice.
Is that out of line being as that it’s literally the first month he’s had to pay rent, or absolutely not, just send it?
Where would I find these forms? The previous owner provided me we with lots of papers, but eviction notices and 3 day pay or quits were not, so I have no clue what verbiage it needs, and such.
@Indra
I know it sounds uncaring but some tenants will walk all over landlords given the chance. But unfortunately it’s a small business not a charity. How long do you want to let them live there for free?
I haven’t dealt with an eviction yet myself but it’s not necessarily a DIY process. You should be able to get the correct verbiage from ChatGPT for the pay or quit notice. Hopefully they pay and that’s the end of it.
If it escalates make sure you follow the letter of the law and don’t do anything that could be interpreted as intimidating/illegal eviction.
Since you’re inexperienced you’ll want to consult a lawyer if you need to evict. It sucks but that’s the nature of being a landlord. (Unless you want to let them live there for free.)