Sending an effective late payment letter is an important part of being a landlord. Keeping a variety of late payment notice forms on file in your landlord forms will assist you in getting quick results. LandLordStation.com has a variety of information to help you.
There are a variety of late payment letter forms. Many landlords send a late payment reminder in the event that the tenant’s payment is lost in the mail, that the tenant has forgotten to send the payment or other unforeseen circumstances have occurred. Generally, this late payment reminder is sent to a tenant who has always been a timely payer when the rent is 1 to 4 days past due. If this is the case, always include the date by which the late payment must be received to avoid penalties.
A late payment notice in the form of a demand for payment is generally sent when the payment is 5 or more days past due. If a renter is habitually late paying rent, you may elect to send this notice right away. The late payment notice should contain the amount due for rental and the amount of late charges. Always add the penalty in addition to the original amount due. Be sure to send by priority mail and keep a copy in case your notice of late rent payment leads to eviction proceedings. In addition, you can state that, if eviction is necessary, the tenant may be responsible for additional charges, such as court and attorney’s fees. You can also remind the tenant that their credit rating could be affected. Be sure to state that the rent and late charge is due immediately and state that this is the only notice the tenant will receive prior to legal action being started.
A late payment letter send due to an insufficient check that has been returned can have much the same verbiage as the late payment notice. State the amount of the rent check and the returned payment charge. Ideally, the returned payment charge has been set out in the lease and, in that event, you must conform to that amount. You can also advise the tenant in this notice that, if the returned check has caused the rental to be late, the rental late fee could be assessed as well. Be sure to advise the tenant that the payment must be made by cash, certified check or money order. And advise that ignoring your notice could incur further costs, damage to the tenant’s credit rating or lead to possible civil or criminal legal proceedings. In most states, an insufficient check for rent is considered a civil matter and criminal consequences do not apply. You need to research that before you add this verbiage to your notice.
If your lease is co-signed, you need to send a late payment letter to the co-signer. When you send a notice of late rent payment or failure to pay to a co-signer, advise them that they are a co-signer for a tenant that has a seriously overdue balance. Let them know that as the co-signer, they are responsible for the amount owed. Add the same verbiage regarding the consequences for failure to pay including court and attorney’s fee, negative impact on credit and more. Be certain that you add the date the over-due amount must be paid and the entire amount due, including fees.
In some states, you must send a late payment letter notice advising the tenant of your intention to report the delinquent payment(s) of the tenant to the appropriate credit agencies. Include verbiage that mentions your numerous attempts to resolve the issue without results, the amount due and the date by which the amount must be paid.
Your notice of late rent payment can include a late payment letter settlement offer. If you decide to give your tenant an opportunity to make payments that allow the tenant to catch up on the rental payments, your notice should include the amount of the current overdue balance, including any partial payments made. Give a due date for each payment and an amount that must be made. Include a statement that these payments are to be made on time, in addition to the regular rent payments. Advise the tenant in your late payment notice that, failure to abide by the agreement will result in eviction proceedings. In this case, have the tenant sign and date the late payment settlement offer.
LandLordStation.com recommends that you consult an attorney if you have any questions about specific laws pertaining to real estate in the state in which the property is located. Visit the LandLordStation.com website and click on the “Community” button at the top of the page and you will find on-going discussions with leaders in the real estate management community regarding this issue. If you don’t see information that answers your question, you can ask the Community your question at no charge. This is a unique and invaluable service that LandLordStation.com provides our customers. For the best information on landlord forms, visit LandLordStation.com.
© Copyright 2015 LandlordStation LLC