What do YOU do when a tenant offers less than the full amount of the rent with a promise for the rest at a later date (in this case towards the end of the month)? I am on the verge of taping an eviction notice on the door of a tenant for a property in Edmonton but I have also heard advice to take less than the full amount if they are unable to come up with the full amount. Does taking the full amount mean that you can not also give an eviction notice? This situation must be common so I would appreciate the benefit of your experience. Best, Carolyn
Property Management Wisdom
- Thread starter CJGreen
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QUOTE (CJGreen @ Feb 2 2009, 05:59 PM) What do YOU do when a tenant offers less than the full amount of the rent with a promise for the rest at a later date (in this case towards the end of the month)? I am on the verge of taping an eviction notice on the door of a tenant for a property in Edmonton but I have also heard advice to take less than the full amount if they are unable to come up with the full amount. Does taking the full amount mean that you can not also give an eviction notice? This situation must be common so I would appreciate the benefit of your experience. Best, Carolyn
Carolyn,
Take the money, but give them the notice too. If they don`t pay you can follow through with the eviction. If they pay in full before due date then the N4 becomes null and void. Keep the N4 on record as 3 of these late payments can be used to terminate for constantly paying late.
(Ontario)
John
Carolyn,
Take the money, but give them the notice too. If they don`t pay you can follow through with the eviction. If they pay in full before due date then the N4 becomes null and void. Keep the N4 on record as 3 of these late payments can be used to terminate for constantly paying late.
(Ontario)
John
Thanks John: I wonder if this is the case in Alberta as I know there are variations province to province. Has anyone done this and found it works with tenants in Edmonton?
QUOTE (Ready4Rent @ Feb 2 2009, 05:32 PM) Carolyn,
Take the money, but give them the notice too. If they don`t pay you can follow through with the eviction. If they pay in full before due date then the N4 becomes null and void. Keep the N4 on record as 3 of these late payments can be used to terminate for constantly paying late.
(Ontario)
John
QUOTE (Ready4Rent @ Feb 2 2009, 05:32 PM) Carolyn,
Take the money, but give them the notice too. If they don`t pay you can follow through with the eviction. If they pay in full before due date then the N4 becomes null and void. Keep the N4 on record as 3 of these late payments can be used to terminate for constantly paying late.
(Ontario)
John
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I agree with John. that would be the best thing to do in Ontario.
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CJGreen,
It does work that way in Alberta also... with the 14 day notice.
Collect the partial rent, but still issue the 14 day notice of eviction. If they do not pay the rest of the rent prior to the end date then you can work on the eviction.
However... if you decide to use RTDRS, you don`t have to serve a 14 day notice. You can submit an application once they are late and work on the process that way also...
There are pros and cons to both ways of collecting late rent, research both and decide which works best for you and your tenant situation.
It does work that way in Alberta also... with the 14 day notice.
Collect the partial rent, but still issue the 14 day notice of eviction. If they do not pay the rest of the rent prior to the end date then you can work on the eviction.
However... if you decide to use RTDRS, you don`t have to serve a 14 day notice. You can submit an application once they are late and work on the process that way also...
There are pros and cons to both ways of collecting late rent, research both and decide which works best for you and your tenant situation.
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QUOTE (CJGreen @ Feb 2 2009, 03:59 PM) What do YOU do when a tenant offers less than the full amount of the rent with a promise for the rest at a later date (in this case towards the end of the month)? I am on the verge of taping an eviction notice on the door of a tenant for a property in Edmonton but I have also heard advice to take less than the full amount if they are unable to come up with the full amount. Does taking the full amount mean that you can not also give an eviction notice? This situation must be common so I would appreciate the benefit of your experience. Best, Carolyn
Treat your tenant as an asset. Some months are tough on some people. Acknowledge that and work with them. Some also come to you in advance and acknowledge it early, and may give you 2 cheques, one post-dated. Treat them different than folks who come on the 3rd and say: here is $250 ..
1st time: take the partial $s and work with tenant
2nd time: take the partial cash and give eviction notice
3rd time: take the partial cash and start court proceedings based on previous eviction notice
Some folks get money on the 15th only .. work with some on a schedule so that 6 months from now they can pay on the first .. educate them ..
We also offer a $100 incentive if paid on the 1st !
i.e. the lease says "rent is $900" but if you pay on the first we will give you a $100 credit. So net rent really is $800. Thus, on the first, the question: pub crawl with buddies or landlord with my $1200 allows him to make a judgement call and perhaps sacrifice that $100 beer !
Treat your tenant as an asset. Some months are tough on some people. Acknowledge that and work with them. Some also come to you in advance and acknowledge it early, and may give you 2 cheques, one post-dated. Treat them different than folks who come on the 3rd and say: here is $250 ..
1st time: take the partial $s and work with tenant
2nd time: take the partial cash and give eviction notice
3rd time: take the partial cash and start court proceedings based on previous eviction notice
Some folks get money on the 15th only .. work with some on a schedule so that 6 months from now they can pay on the first .. educate them ..
We also offer a $100 incentive if paid on the 1st !
i.e. the lease says "rent is $900" but if you pay on the first we will give you a $100 credit. So net rent really is $800. Thus, on the first, the question: pub crawl with buddies or landlord with my $1200 allows him to make a judgement call and perhaps sacrifice that $100 beer !
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We had a similiar situation but it`s slowly working it`s way out. It was a little frustrating, but I think it will work out in the end. I maybe considered a soft heart, but I also saw my tenant as a long term asset. I realize I woudn`t have been so understanding if I hadn`t taken a bit of time to get to know her and assess what kind of person she is.
Our tenant and her common law husband and kids moved in in Sept. Her band pays part of the rent as an off reserve allowance as she is waiting to have a house built for her and her family on the reserve. The band paid 1500 of the 1850 rent and the utilities. The common law husband paid the balance of the rent.
In December, he got kicked out of the house (she has strong behavior rules for what is acceptable around children), so in December we received 1500. When child tax came in on Dec 20, we received the next 350. In January, it is the same case but in the mean time there has been talks with the band as she trying to house 4 children. As of Feb 1, the band is covering $1800 and $50 is coming on Feb 20 and as of March 1 we will have post dated chqs of $50 at the start of the month. All utilities are covered by the band so there are no worries there.
I was willing to do this because: 1) she keeps the house immaculate (we saw that after the first few months) 2) she has decided to go back to school to better herself so she can get a job (and not just rely on the band) 3) she will be potentially be in the house for 2-3 years before she can have her house build.
PS...maybe I`ll become more hard nosed as the years go on. We just started in 2008, but we are finding tenants/clients are resigning just because of the way we`ve been treating them.
Susan
Our tenant and her common law husband and kids moved in in Sept. Her band pays part of the rent as an off reserve allowance as she is waiting to have a house built for her and her family on the reserve. The band paid 1500 of the 1850 rent and the utilities. The common law husband paid the balance of the rent.
In December, he got kicked out of the house (she has strong behavior rules for what is acceptable around children), so in December we received 1500. When child tax came in on Dec 20, we received the next 350. In January, it is the same case but in the mean time there has been talks with the band as she trying to house 4 children. As of Feb 1, the band is covering $1800 and $50 is coming on Feb 20 and as of March 1 we will have post dated chqs of $50 at the start of the month. All utilities are covered by the band so there are no worries there.
I was willing to do this because: 1) she keeps the house immaculate (we saw that after the first few months) 2) she has decided to go back to school to better herself so she can get a job (and not just rely on the band) 3) she will be potentially be in the house for 2-3 years before she can have her house build.
PS...maybe I`ll become more hard nosed as the years go on. We just started in 2008, but we are finding tenants/clients are resigning just because of the way we`ve been treating them.
Susan
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1st time: take the partial $s and work with tenant
2nd time: take the partial cash and give eviction notice
3rd time: take the partial cash and start court proceedings based on previous eviction notice
This is a fair approach that Thomas has posted.
I tend to take a fair hard line approach to late payments. I always charge a late fee. The first time it happens I sit down with the tenant and explain that it is not necessary for them to apologize or give me any reason why they are late or unable to pay the entire amount. I explain that there money matters are a personal issue that is not my business. I politely stop them every time they try to give a reason.
This tends to catch them off guard as most people feel giving excuses somehow excuses them for there short comings. Personally I am not interested in there excuses. I explain that it is necessary for me to issue them a N4 (eviction notice) but that it is simply a formality that allows them 14 days to pay the remainder of the rent.
I make it clear that I have financial responsibilities and that by with holding "my" money they are costing me money.
As I am leaving I tell them that my policy is to automatically evict after the third late regardless of the reason and I hope that circumstances beyond there control do not place there tenancy in jeopardy..
My policy is never to get friendly with new tenants until I know exactly what type of people they are.
2nd time: take the partial cash and give eviction notice
3rd time: take the partial cash and start court proceedings based on previous eviction notice
This is a fair approach that Thomas has posted.
I tend to take a fair hard line approach to late payments. I always charge a late fee. The first time it happens I sit down with the tenant and explain that it is not necessary for them to apologize or give me any reason why they are late or unable to pay the entire amount. I explain that there money matters are a personal issue that is not my business. I politely stop them every time they try to give a reason.
This tends to catch them off guard as most people feel giving excuses somehow excuses them for there short comings. Personally I am not interested in there excuses. I explain that it is necessary for me to issue them a N4 (eviction notice) but that it is simply a formality that allows them 14 days to pay the remainder of the rent.
I make it clear that I have financial responsibilities and that by with holding "my" money they are costing me money.
As I am leaving I tell them that my policy is to automatically evict after the third late regardless of the reason and I hope that circumstances beyond there control do not place there tenancy in jeopardy..
My policy is never to get friendly with new tenants until I know exactly what type of people they are.
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I like your advise Thomas and invest4profit!
I`ll be working towards that attitude as I get more properties.
How do you deal with a tenant that wants you to deposit their chq on the 8th of the month vs 1st..."due to payroll payments". Do you tell them learn to budget?
I`ll be working towards that attitude as I get more properties.
How do you deal with a tenant that wants you to deposit their chq on the 8th of the month vs 1st..."due to payroll payments". Do you tell them learn to budget?
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I would tell them to budget but it really depends on how you chose to run your business.
I find every extra trip to the bank not only costs me money but more importantly costs me time not only in going to the bank but also in additional book work.
I have too many tenants to treat each individually.
Rent is the only item I do not give tenants personal treatment beyond initial training where required.
I find every extra trip to the bank not only costs me money but more importantly costs me time not only in going to the bank but also in additional book work.
I have too many tenants to treat each individually.
Rent is the only item I do not give tenants personal treatment beyond initial training where required.
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QUOTE (SusanPenner @ Feb 3 2009, 12:17 PM) I like your advise Thomas and invest4profit!
I`ll be working towards that attitude as I get more properties.
How do you deal with a tenant that wants you to deposit their chq on the 8th of the month vs 1st..."due to payroll payments". Do you tell them learn to budget?
take them on the 8th for a few months .. THEN EDUCATE them that this is a business and you have bills to: utilities, mortgages, taxes, onsite managers, paint jobs, ... and get them on a PLAN to pay by the first .. say 6 months from now !!
i.e. pre-pay a bit for 6 month .. so that in 6 month you have already collected the 6th moth. and then they have cash that in month 7 then pay on the first !
btw: the bank does NOT care when you collect $s or how much profit or loss you make .. but they expect their payment on eeh 1st usually (although we have now moved that to the 5th of every month for most buildings now) !!
I`ll be working towards that attitude as I get more properties.
How do you deal with a tenant that wants you to deposit their chq on the 8th of the month vs 1st..."due to payroll payments". Do you tell them learn to budget?
take them on the 8th for a few months .. THEN EDUCATE them that this is a business and you have bills to: utilities, mortgages, taxes, onsite managers, paint jobs, ... and get them on a PLAN to pay by the first .. say 6 months from now !!
i.e. pre-pay a bit for 6 month .. so that in 6 month you have already collected the 6th moth. and then they have cash that in month 7 then pay on the first !
btw: the bank does NOT care when you collect $s or how much profit or loss you make .. but they expect their payment on eeh 1st usually (although we have now moved that to the 5th of every month for most buildings now) !!
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Try this.
Tell him you have no problem with him paying on the later date but you will have to charge a late fee to cover your additional costs for travel, banking, book keeping, interest payments etc.
My bet is he will have no problem paying on the first of the month.
Tell him you have no problem with him paying on the later date but you will have to charge a late fee to cover your additional costs for travel, banking, book keeping, interest payments etc.
My bet is he will have no problem paying on the first of the month.
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Thanks a bunch!
Really appreciate it as this first year has been quite the learning curve trying to hash out what kind of client relations I want to have!
Regards,
Susan
Really appreciate it as this first year has been quite the learning curve trying to hash out what kind of client relations I want to have!
Regards,
Susan