Posted by JPiper on September 08, 2000 at 07:42:20:
When I’m setting the deal up initially (whether it is a rental, lease/option, contract for deed, first or second mortgage), I tell them all the same thing. That I turn into a mean $%^$##* when I don’t get paid!
When the day arrives that they are even ONE day late…I take that as an opportunity to prove it. Most of the time I do this with a phone call, although sometimes I do it with a letter. Either way, it’s IMPORTANT to react…otherwise they learn that you do not have BOUNDARIES. I will generally give ONE chance to not pay a late fee…after that I collect it.
What happens is that you TEACH them that it’s not OK if they don’t pay you. I have had people paying me on their second, but not paying the first. In the end they deeded the property back to me in lieu of foreclosure. I recently had a guy paying me rent…but not paying his water, gas, or electric bill.
Bottomline is don’t give an inch…they’ll take that and more the next time. If you let it slide you lose.