Get your Tenant Caught Up on Rent - without losing your hair.

With the end of year coming up many are facing lease renewals. Follow these tips and help your renters or tenants achieve timely payments.

Set up your rental agreement to include a discount for EARLY payment.  Many people give a 5-10% discount for early payment.  That is  BEFORE the due date. I also ask my renters to deposit directly into a special savings or checking account set up for the rental.  No more "check is in the mail" situations.

Even with proper set up there can be occasional problems.  After all it is a tough economy. Life happens, there will be sickness and possibly  hospital stays. Electric bills, may  overwhelm renters that are unprepared.  If you have budget plan available at your utilities, encourage your renter to sign up. Employment is  an area that can trip up a regularly paying tenant. it..

What I have learned the hard way is that you HAVE to keep current on all names, phone numbers, email addresses and job listings for your tenants.  Let them know they need to keep you up to date with information.  Landlords are not BANKS and they are not the renter's mom!  Tell them they must CALL you  to arrange for extra time to pay. Once or 2x  i a year  is okay - habitually - NO! Consider putting them on a weekly payment schedule if they are chronically late in paying.

Hire a property manager or do it right. Keep a file of  tenant records, on your computer and in a Paper Trail File. Keep the application, lease agreement and credit report.  Keep an excel file of  all updates to the tenant information.   Inspect your the property regularly.   If it is starting to look ragged outside make appointment to see the inside.A property manager can handle that for you. A property manager  normally charges about 10% of the rent income.  Property managment fees are a  tax deductible expense.

Give your tenant  a copy of  the Landlord- Tenant hand booklet for your state. .  This can be found at  your local courthouse or the library may have a copy.  The booklet  will outline your state's requirements for landlords. Read up and be knowledgeable on what to do to handle your property in a businesslike way. Memorize the landlord requirements for deposits so that you don't end up in court.

If rent is late, you need to start eviction proceedings.  Especially if they have not called or emailed you to make arrangements. That does not mean they will be evicted just that you are sending a message. Eviction is a process.

In the Landlord/-Tenant hand booklet procedures will be outlined of the proper way to send notice. A time line will be given for eviction process. In Arizona there is a 5 day period to bring rent current after and eviction notice is served. Bringing current stops the eviction process.  Be aware that a landlord cannot refuse full rent payment. They can, however, refuse to accept payment arrangements.  This is a good time to remind your tenant that the PHONE and EMAIL are to be used.

Try to make arrangements for bringing current (remember: " not a bank")  on the eviction notice. Have them sign it and leave a copy for them. I have two copies prepared ahead of time so that it is easy to leave a copy. Make sure to follow all legal methods.  Remind them that if the arrangements are not met, the eviction process will resume. If they are not willing to make reasonable attempts to bring current then follow through with eviction steps.

Once you have done this procedure a time or two the message is clear that you won't be allowing late payments continually. Keep to this method and if there is reoccurring problem, it is documented. From there a decision to evict or keep as tenants can be made. Hopefully you will be happy with the outcome and all will proceed smoothly.