How Can Property Managers Handle Late Rent Payments?

Renting a property can be a great way to make extra income, but it can also be a lot of work. One of the aspects of being a landowner is dealing with late rent payments. Here’s when certified property management in Bakersfield will help. These experts can work with tenants to determine why the rent is late and develop a reasonable payment plan that benefits everyone.

Read on to understand how property managers handle late rent payments.

Property managers can help landlords minimize financial risks by following simple steps to tackle late rent payments.

1. Send a Reminder Email Or Text

The lease agreement is legally binding, so landlords and property managers must remind tenants of late rent payments. Sending a simple reminder email or text can be a great way to remind the tenant that rent is due and that there may be consequences if payment is not received promptly.

A good lease agreement should have the following information:

The rental amount due

The payment schedule (when it is due and how much)

What happens if rent is late

Late fees, if applicable

2. Honor a Grace Period

Property managers often offer a grace period for late rent payments. This is usually anywhere from 3 to 5 days. During this time, the tenant won’t incur any late fees or penalties as long as they pay their rent in full before the grace period ends. Property managers must make tenants aware of their grace period and the expectations of paying rent on time.

3. Late Fees and Penalties

If the tenant fails to pay their rent before the grace period ends, then late fees and penalties should be applied. Property managers need to understand state law regarding these fees and penalties, as the maximum amount that can be charged varies from state to state. Generally, late fees should be at most $50 or 5% of the total rent amount. Depending on their situation, tenants may also be required to pay the penalty and their late fee.

3. Send an Eviction Notice

If the tenant continues to ignore late rent payments, a property manager may decide to send an eviction notice. This document officially warns tenants that they are violating their lease agreement and must pay the delinquent amount or face the consequences. Depending on their state’s regulations, a landlord may be able to immediately file for eviction if the tenant does not comply with the warning. It is crucial to remember that an eviction notice should be used as a last resort when all methods have failed.

4. Collect Money through Small Claims Court

If the tenant fails to make payments, a property manager can take them to small claims court to collect the money owed. Small claims court is a less formal version of a civil court and takes fewer legal proceedings than other courts. Property managers should ensure that they have all their documentation set up before going to court, such as copies of the lease agreements, proof of late payments, and any other paperwork related to the tenant’s situation.

Final Words

Professional property management in Bakersfield, CA, offers expertise in navigating late rent payments’ complexities. Property managers have a vast array of tools to help tenants who may struggle to make timely payments.