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Cary Property Management Advice: How Do You Deal With Late Rental Payments?

Cary Property Management Advice: How Do You Deal With Late Rental Payments?

MasterKey is a property owner's choice for Cary property management services throughout the Triangle area, including Raleigh, Apex, Morrisville and Holly Springs.

Late rental payments are disruptive, especially if you have a mortgage to pay, insurance, taxes, and other property-related expenses. A consistent rental collection policy will ensure your tenants understand your expectations and the consequences of late payments.

Try these steps if you have a tenant who behind in rent payments.

Communicate with the Tenant

The rent collection policy should be included in your lease, and it’s a good idea to communicate the details of that policy with your tenants before they move in. Explain when rent is due, how it is to be paid, and whether there is a grace period for them to pay without late fees and other penalties.

If the due date comes and goes and you haven’t received the payment, reach out to them. A courtesy call might provide details that explain the late payment and tell you when you can expect the payment. Maybe there was a problem with the tenant’s bank or an unexpected expenses set them behind for this month.

A written notification is also required. At MasterKey Property Management, our software system sends out an automatic notification when rent isn’t received on time. The letter will go via email, text, or through the regular mail. This notifies the tenants that rent is late and needs to be paid as soon as possible.

10 Day Pay or Quit Notice

If the tenants don’t respond or you’re unable to reach them, the next step is to serve an official Notice to Pay or Quit. In North Carolina, landlords are required to give their tenants a 10-day notice period before they file a formal eviction. Ten days is a long time to wait, so serve this notice as soon as you can. If you have to move forward with an eviction, it will save you time and money to get the process and the clock started right away.

Educating your Tenants on Responsible Rental Payments

Most tenants will catch up with rent once they receive the 10-Day Notice to Pay or Quit. They don’t want to go through an eviction and they don’t want this type of debt hanging around on their credit report. Hopefully, you’ll avoid filing for an eviction with the courts. If your tenants promise to pay in a week or on a specific date, put that agreement in writing. You want to hold them accountable and be empowered to take the next legal steps if they don’t fulfill their promise and catch up with the overdue rent.

Educating your Tenants on Responsible Rental PaymentsThis is a good opportunity to talk to your tenants about the importance of on-time rental payments. Everyone runs into financial problems once in a while, but paying the rent must be a priority every month. Talk to them about the effect of late or missing payments on their credit and the importance of establishing a good and positive rental history.

We work well with tenants, and we have a great record of on-time rental payments. For help with collecting rent and managing tenant relationships, contact us at MasterKey Property Management. We’d love to meet your Cary property management needs.

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