It was reported last year that nearly 20% of renters in the country were behind on their rent payments.
While late rent payment has become something somewhat normal in the past couple of years due to shutdowns and the economic crisis, that doesn’t mean you have to sit back and wait for renters to pay what’s owed to you.
Here is what to know about why most renters are late and how to handle late rent payments.
The Most Common Reasons for Late Rent Payments
Sometimes, despite your tenants’ best intentions, life just gets in the way and they end up paying a little (or a lot) late. So what are the most common excuses for delayed rent payments?
First, there's always the classic "the check got lost in the mail" excuse. Then there are unexpected expenses like car troubles or medical bills. Typically, their excuses are always valid.
At the end of the day, all landlords just want their money on time. If you’re receiving the same excuses then here are some tips on how to handle late rent payments.
3 Tips for Handling a Late Rent Payment
Dealing with late rent payments is one of those unfortunate realities that come with the job. But fear not! Here are some tips for handling a late rent payment.
Understand Landlord’s Rights
The law also allows landlords to charge late fees and potentially raise rent rates for repeat offenders. And while some landlords may choose to work with tenants who are having difficulty making payments, ultimately it is within their rights to begin the eviction process if necessary.
Click here to learn more about eviction for late rent payment issues in the State of Hawaii.
Send a Late Rent Payment Notice
Before taking drastic measures such as eviction, it’s best to send out a polite late rent payment notice first. What should you include in this letter as you collect rent for the month?
First, make a gentle reminder of the late fees associated with not paying on time (we’ll get into this in just a second).
Next, offer some helpful tips on how to avoid late rent in the future. For example, creating a budget or setting aside money each month specifically for rent payments.
And finally, end on a positive note about looking forward to continued tenancy and a mutually beneficial relationship between landlord and tenant. Remember that it’s all about communication and finding the balance between assertiveness and friendliness in these situations.
Charge Late Rent Fees
How do you charge those pesky late fees without looking like the bad guy? First, make sure you have a clear late fee policy in your lease agreement so that tenants know exactly what they're responsible for.
Then, communicate with your tenants about their late rent before charging any fees. If they ignore your attempts at communication, charge them the late fee and keep good records of all correspondence.
Get Help With Kona Property Management
You don’t have to handle late rent payment issues alone. At Home River Group Hawaii we offer premium property management services in Kona and the Hawaii Big Island area.
Click here to learn more about our Kona property management services and then get in touch to chat about your needs!
