Late Rent Action Plan for Landlords

Aside from maintenance, of the most common challenges owners tell us they have are tenants who don’t pay their rent, or chronically pay it late. At MSB Property Management, we have a specific action plan for late rent payments.

Late Fees
Rent is due on the first of the month. At MSB we encourage our tenants to submit rent payments online, but still have a five day grace period to accommodate various payment methods. If rent is not received by the 5th, we try to do a courtesy call or message whenever possible. If it’s still not in by the 6th day of the month, a late fee is charged to the tenant. We will notify them of the late fee and give them instructions on ho to pay the additional fee. If the late payment is due to a legitimate hardship, it is important to make a payment plan with the tenant to get caught up. Communication is key.

3-Day Notice to Pay or Quit
If several days go by and we don’t hear from the tenant, we will serve a ‘3-Day Notice to Pay or Quit’ in accordance with city regulations. This notice requires the tenants to pay rent within three days or vacate the property. If those three days come and go and we still don’t have a payment and we haven’t heard from the tenants, we submit everything to our lawyers and an ‘Unlawful Detainer’ is filed against the tenant.

This is the process we follow, and it works well in getting rent paid on time. If you have any questions about these tips, please contact us at MSB Property Management.