Posted in Blog  
  on Jan 05, 2015

Explanation of 3 Day Notice to Pay Rent or Quit

98% of tenants tend to be great renters. They pay their rent on time, don't generate complaints, and take care of the rental properties where they live with great care. Then there's the other 2% of tenants that struggle to pay their rent on time every month, need constant inspections, and are almost always living under the threat of eviction. The 3 Day Notice to Pay Rent or Quit is the last chance for a tenant to get back into compliance.

What Needs To Be Considered With the Notice?

The primary consideration must be any grace period that may be in place with the rental agreement. If you have a grace period that extends to the end of the day on the 5th of the month, then technically your rent is not due on the 1st of the month. It's due at the 5th of the month, no matter what you might verbally say to someone. You cannot send out this 3 day notice until the 6th. The notice itself is just a demand for payment. It tells the tenant that their rent is late and that they need to get payment in right away. Using the example above, the tenant would need to pay their rent, along with any late fees, by the end of the day on the 9th. If the tenant failed to do so, then it would be possible to proceed further with an infection. If the tenant does pay their rent and late fees, then the notice gets canceled. Here's something that you should consider. If you decide to cancel the late fees for a tenant for whatever reason, you've just set the legal standard of not requiring other tenants to pay their late fees to be in compliance. A long-term tenant can fall on hard times and that's heartbreaking when it happens, but sticking to your guns and being consistent is always the best way to go with these notices.

You Can Send This Notice Out Any Time the Rent Is Late

You don't have to send this letter out on the exact day the rent is late. You can send it out at any time there is late rent that is due. If you have utility bills that have come to your office or home that are the responsibility of the tenant and they fail to pay them after you've billed them, then landlord/tenant laws may allow for the 3 Day Notice to be sent as well. It's also important to realize that if a tenant pays their rent, but fails to pay their late fees or other charges, that they may still be out of compliance. Many landlord/tenant laws allow for rental payments to be distributed based on fees before rental payments. If you charge $1,000 in rent and have $100 in late fees, a tenant paying $1,000 to respond to the notice may still be considered past due in their rent by $100 and the eviction may still be able to proceed. With consistent, timely action, the 3 Day Notice can be a powerful tool to use that will protect your legal rights. Make sure to keep records of each notice, have proof of delivery, and send it when the rent is legally late instead of when you think it may be late. If you can do that, then you'll be able to get more rent out of the 2%.


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