Tenant Late Pay......Procedures for Eviction??? - Posted by Eric

Real Estate Investing Real Estate Law
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Posted by Jimmy on September 19, 2005 at 10:56:02:

I am unaware of any legal limitations on late fees, other than general equitable concepts of fairness and unconscionability. I never want to be in a position of having to justify to a judge why I am charging late fees which are disproportionately high.

I am content to collect $25 and leave it there.

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Tenant Late Pay…Procedures for Eviction??? - Posted by Eric

Posted by Eric on September 19, 2005 at 07:27:37:

My tenant has a history of late payments and 19 days late for the month, and also not responding to phonecalls. What is the typical procedure from here? What steps can I take to get rid of this guy and get my condo back???

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Re: Tenant Late Pay…Procedures for Eviction? - Posted by Rainbow

Posted by Rainbow on September 19, 2005 at 07:47:19:

You Sherrif’s office can tell you the procedure, your State law will mandate the procedure.

19 days is probably late in any state anyway, but your eviction procedure can vary.

Here is a link for a Free “Notice to Vacate For Non-payment of Rent.”

http://www.ilrg.com/forms/threeday.html

You will still need to know your governing law in your state.

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I Love Late Fees!!! - Posted by jimmy

Posted by jimmy on September 19, 2005 at 07:40:50:

first, a little perspective. late pays are better than no-pays. particularly if you snatch a late fee each month. late fees are gravy. I would love it if al of my tenants paid on the 20th of the month, and threw me a $25 fee each time.

I handle late-pays as follows: (a) around the 20th of the month, I send a 3-day notice. this usually gets the rent plus a $25 late fee. if not, then (b) I file eviction papers 4 days later. very simple process in most places.

the eviction process differs from place to place. but the process is similar. What differs is the time it takes to complete the steps.

  1. deliver 3 day notice
  2. on 4th day, file eviction papers with proper court (usually a municipal court or Justice O’ Peace.
  3. hearing date set a few days later. tenants never show up. you get eviction order. tenant has a week or so to pay up or vacate.
  4. if tenant does not vacate or pay by that date, you go back to the courthouse and file papers asking for a writ of possession. Judge will issue order for tenant to get out within 2-3 days. But this time, the constable (or other official) can physically remove the tenant and their property.

I have handed out more than 100 3 day notices, have filed for eviction maybe 40 times, and have sought a writ of possession only once. The tenants usually get the message and leave.

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Re: I Love Late Fees!!! - Posted by Rainbow

Posted by Rainbow on September 19, 2005 at 07:54:51:

This is an interesting point of view!!!

I have heard or read of other landlords that have an escalating late fee schedule.

For example

Due on the 1st, late on the 5th…&25 late fee, if still late by the 10th an addtional 25, 5 more days, an addtional 25, etc.

Others $25, then 5 dollars per additional day late.

Is this legal? Is there a maximum late fees that you can charge?

If it is very well spelled out in the rental/lease agreement, is it ok?