It’s the first of the month, and your rent payment hasn’t arrived. A few days go by, and still nothing. Now you’re asking yourself: “My resident is late with rent — what should I do?”
If you’re a landlord or rental property owner, this scenario can happen at any time. While it is one of the most stressful situations you may encounter, before jumping to conclusions, it’s important to assess the situation. Ask yourself, is this a one-time issue with an otherwise reliable resident? Or does it demonstrate a pattern that could cost you time, money, and peace of mind?
With this article, we aim to help you tell the difference between a good late payer and a bad late payer, and offer actionable steps to take when rent doesn’t arrive on time.
First Things First: Don’t Panic
Not receiving rent on time is frustrating and can put you, as a property owner, in a tough position. However, not every late payment is a sign of trouble. Life happens - unexpected expenses, temporary job loss, or bank delays can throw off even the most responsible resident. There are also residents who will always pay late and be perfectly fine paying their rent plus a late fee for the luxury of paying later in the month.
So, how do you know if your resident is worth working with or if it’s time to prepare for a more serious course of action? Let’s start by exploring two types of late payers: the good and the not-so-good.
The Good Late Payer
Yes, they do exist! Even though a good late payer may not be ideal, they’re manageable and often worth keeping as a resident.
Here are a few signs that your resident is a good late payer:
1. They Pay Predictably
If your resident consistently pays on, say, the 15th of every month, even if rent is technically due on the 1st, that’s a sign of dependability. This consistency is a good sign that your resident intends to pay their rent each month and other factors influence their timing, not their ability to pay.
2. They Communicate Openly
When something changes, whether it be job loss, a family emergency, or a car breakdown, they let you know. They don’t hide, ignore your calls, or dodge your texts. Instead, they’re honest and upfront about what’s going on so you aren’t left wondering why their rent is late.
3. They Follow Through
When they say, “I’ll have it to you on Friday,” they follow through. Even if they’re behind, they make good on their promises and take ownership of the situation.
4. They Respect Your Property
You can tell a lot about a person by how they care for the home they’re renting. If they keep the place clean and well-maintained, it’s a sign they take their responsibilities seriously, even if rent is occasionally late.
Keep a checklist of these behaviors so you have a written record to look back on of your resident’s history. If they check all four boxes, you probably have a good late payer on your hands - or someone who may just need flexibility on their side rather than eviction.
It’s important to note that even if you have a good late payer on your hands now, they may not stay that way. We have seen these kinds of residents turn into bad late payers with time, so it’s important to stay proactive and find a long term solution if possible.
The Not-So-Good Late Payer
On the other hand we have late payers who don’t demonstrate any of the encouraging behaviors that our good late payers do. These residents usually cause chronic headaches for you as a rental property owner, draining your time, patience, and bank account.
Here are a few signs that your resident is a bad late payer:
1. Unpredictable Payments
One month it’s $500, the next it’s $250, and then nothing for weeks. Sporadic, partial payments make it difficult to track balances and disrupt your financial planning. This is often a sign that a resident is falling more and more behind and will not be able to pay their rent in full, even if given more chances.
2. Poor or No Communication
If you’ve tried calling, texting, and emailing your resident and still can’t get a response, that’s a big red flag. Silence usually signals avoidance, not resolution, and means your rent money is not coming your way.
3. Broken Promises
Once you finally get in touch, they tell you what you want to hear: “I get paid Friday,” “I’ll drop it off tonight,” “I’m waiting on a check.” But when the time comes, the promises never come through. Over time, the excuses pile up but your rent money never arrives.
4. Neglect of the Property
Take a drive by your property and assess the state it’s in. If the landscaping is excessively overgrown, trash is piling up, or the exterior is in disrepair, this is a sign that your resident is not taking care of their responsibilities, financially or otherwise. Unfortunately, we often see that residents who avoid their responsibilities when it comes to taking care of the place they live often do the same with other areas of their lives.
If these warning signs sound familiar, you may be dealing with a resident who is either unwilling or unable to meet their rental obligations long-term. This is an unfortunate situation to be in, but don’t despair, you have options to remove the troublesome resident and turn things around.
What to Do Next
Whether you’re dealing with a good or not-so-good late payer, there are a few key steps to take. Let’s break it down.
Step 1: Review Your Lease Agreement
Go back to the signed lease agreement and review the terms regarding rent due dates, grace periods, and late fees. Your lease should clearly outline when rent is considered late and what the consequences are. This is a key reason you should never rent your property without a solid written lease agreement in place. It leaves both you and your property left unprotected in situations like these.
Step 2: Reach Out Promptly and Professionally
Once you know exactly what the agreed-upon terms are, reach out to your resident, politely but firmly, to check in. Give them a call and send a followup email that says something like: “Hi [Name], I noticed we haven’t received rent yet. Just checking in - can you let me know when to expect it?”
Keep in mind that your tone matters! Stay calm and always keep it professional. Give your resident a chance to explain before assuming the worst and putting them on the defensive.
Step 3: Charge Late Fees Consistently
If your lease includes a late fee, enforce it. Consistency is key in order to protect your income and to reinforce the importance of on-time payments.
Step 4: Document Everything
Keep a written record of all communication, promises made, and payments received. This will be essential if you need to pursue formal action later.
Step 5: Offer Solutions - Within Limits
If your resident is typically responsible but has hit a rough patch, consider offering a payment plan or short-term flexibility. These kinds of measures can go a long way in helping a temporarily troubled resident get back on track. However, make sure all agreements are in writing with clear deadlines and signed by all parties.
Step 6: Know When to Take Action
If you’ve communicated kindly, presented solutions, and ultimately exhausted your options but your rent still isn’t coming, it may be time to move forward with legal action. Familiarize yourself with your local eviction laws, or better yet, consult a professional property management company or attorney to advise you on the steps you need to take or even handle the process for you.
Final Thoughts: Know the Difference, Protect Your Investment
Dealing with late rent is part of being a property manager, but how you respond can make all the difference. Understanding the type of resident you’re working with helps you protect your investment and avoid making knee-jerk decisions. Ultimately, property management is a business, and like any business, the key to success is knowing when to be flexible and when to draw the line.
If you’re unsure what to do or feeling overwhelmed, don’t hesitate to seek help from professionals around you. At Evernest, we help landlords navigate these tricky situations every day and would be happy to help you find a resolution.
Need guidance on handling a chronically late resident? Head to our website today to get help.
