A late notice not only may be the best defense in the collection process but it also serves as proof in the eventuality of a court hearing by providing a paper trail. Knowing when and how and which Late Notice to use, may be the difference of actually preventing the court process.
Here are important tips to follow when sending your tenant a late notice.
1. Check your state and local LandlordTenant statutes. Practically every state — and some counties and municipalities — have specific laws that set forth the legal whens, whys, and hows for late rent notices. Begin by researching state and local laws thoroughly, and then create your own late payment warning system using the results of your investigation.
2. Clearly explain to your tenant the rent collection process at the time of lease signing. Better yet, make sure that your tenants fully understand the procedures to pay rent and the consequences for being late in paying the rent. This will enable you to show your tenant that you demand timely rental payments and will and that you will pursue all collection avenues to the fullest extent possible if payments are not made on time.
3. Don’t procrastinate. Many experts are in agreement that your first late notice should go out as soon as the rent becomes late. For example, if the lease agreement states that rent is due on the 1st of the month, the late notice should sent on morning of the 2nd. This will begin the paper trail of documentation that most states will require before court proceedings may commence.
4. Accompany written notices with phone calls, emails or in-person conversations. From a legal perspective, written notices are of chief importance. But professionals say that the most efficient collection method is one that combines both written and spoken communications. It is important to use a professional tone and limit your discussion to the facts and the consequences of late payments. Do not raise your voice or use threats as this may backfire in your collection effort.
5. Do not stop sending reminders until the balance is paid. As the situation escalates, the power of the language in your late notices should become stronger. EZ Landlord Forms is an ideal web-site where you have a choice of many different late notices to use, depending on the extent of the lateness. There is also a notice to offer the terms of a payment arrangement if you and your tenant have agreed to terms in order to pay off the balance.
6. If the tenant has still not paid, do not give up. You have the right to receive rent from your tenant. Your rental property is a business, and without the rental income, that business is more susceptible to failure. If your tenant has failed to honor his end of the lease agreement, take advantage of all of the collection measures that are available to you, up to and including eviction.
As a landlord, the use of late rent notices are your best defense against the grief of delayed, slow, and missing rent payments. Using these tools wisely and effectively shall maximize your collection effort.…