Today at Total Property Solutions, we are talking about how to handle late rent. It’s basically a three step process that you can follow, which we find works most efficiently. But first, let’s talk about something really important that can help you avoid having to use this process to collect late rent. That’s your tenant relationship.
It’s helpful to establish a healthy relationship with your tenants even before they move in. We do that immediately. We get to know the people. If they have a dog, we ask them to bring the dog in because there are certain breeds we don’t allow. Getting to know your tenants and opening the lines of communication early sets you up for a more profitable and long term relationship with that tenant.
Step One: Contact the Tenant
In the event that the tenants don’t pay rent, the process starts with phone call. It’s just a simple contact to find out why they haven’t paid rent and when we can expect it. We listen to them and if there’s a good reason, we figure out a payment plan. Ultimately, we want the tenants to pay the rent and stay in the property.
Step Two: Three Day Notice
If the tenants ignore us or they do not follow through on the payment agreement we have established, we serve a Three Day Notice to Pay or Quit. This is a lawful notice which gives them three days to pay the rent in full or surrender the property.
Step Three: Eviction Process
If the tenants don’t respond to that notice, then we start the legal eviction process. Ultimately, it ends with us meeting at the property with the Sheriff’s department to get the property back. Eviction is unlikely here at TPS and that’s because we screen really well at the beginning and we know as much as we can about the people we are moving into the property.