A big question on homeowners’ minds is how to deal with tenants who are late on paying their rent. If you are on your own—not working with someone like Drake Properties—the first course of action is to call the tenant. If that doesn’t work, you can try speaking with them in person. If neither confrontation proves successful in getting them to pay their rent, then the last option is eviction. Of course, no one really likes this option. It is a lose-lose for both parties involved.
Hiring a Property Manager is Usually the Best Option
The better option—the option that allows your tenant to keep a roof over their head and allows you keep money coming in on your property—is to have a property management company like Drake Properties on your side. This way, it is the responsibility of the property managers to handle rent collection, whether the tenant is timely or not. It is our policy to post a 3 Day Pay or Quit notice on the very first day they are late. Our rents are due on the 1st of each montha and late the 4th with a 7% late fee added. Additionally we enforce another policy that mandates the oldest charges be paid first. For example, with a tenant who owes a late fee and decides to pay rent without including the late fee, it will carry over into the following month incurring additional late fees. This may seem harsh, but we think it is just plain old fair. We find that this policy helps to ensure renters avoid paying their rent late.
Charging Late Fees?
If you are still hesitant to work with a property management company like Drake Properties, consider this: you could attempt to charge your own late fees, but you would still have to personally track down the tenant to receive your payment. Working with a property manager can be extremely valuable, because it not only saves the landlord time, but tenants tend to place more weight on mandated late fees coming from a company like Drake Properties rather than an independent landlord. Just keep in mind, any fees paid to a management company are tax deductible, so in the long run it may save you valuable time and money to hire professional like Drake Properties.
With any other questions concerning late fees, feel free to contact us today at (951) 373-2500.