Handling late rental payments – a landlords guide

As a landlord, getting paid on time is essential. Late payments can hurt your finances. They make it hard to pay your bills and keep your property in good shape.

Even the best tenants can sometimes fall behind on rent. Managing late payments is something many landlords will face.

Here’s some tips on helping manage this issue:

Communicate clearly.

• If the rent is late, a polite reminder can go a long way. Sometimes people simply forget.
• If there’s no response, reach out for a chat to understand what’s going on.

Understand the reason.

• Ask why the rent is late. This helps you decide what to do next. Hopefully, the problem is temporary and can be easily fixed.
• If they’re having money troubles, show understanding. A little empathy can help maintain goodwill.

Offer solutions.

• Work out a plan that allows the tenant to pay off the late rent over a timeframe that works for both of you.
• If they can’t pay everything at once, consider taking part of the rent now and agreeing on when the rest will be paid.
• Contact us to see if we can help.
• Refer your tenant to a support organisation.
  • The sooner they get help, the better the chance you get paid or agree on a plan. Community Development Trust helpline - 01803 446022
  • Citizens Advice - 0808 278 7859 (freephone)
  • Torbay Council - 01803 208723

Set clear consequences.

• Include a “late fee” clause in the contract (check with your lawyers on wording). It encourages timely payments and shows that there are consequences.
• If missed payments keep happening, mention legal action, like eviction. Make it clear this is a last resort.

Document everything.

• Record all communications, agreements, and actions related to late payments.
• If you make any changes, like a payment plan, document it, and have both you and the tenant sign it.
• Know your rights and responsibilities.
• Know the legal steps for handling late payments and evictions in your area.
• If things don't get better, talk to a lawyer. They will help you follow the right steps.

Keep your cool.

• Dealing with late rent can be frustrating. Staying calm is important to solve the problem. Avoid getting emotional or confrontational.
• Treat all tenants fairly by applying the same rules across the board.

By following these steps, you can handle late rent well and keep a good relationship with your tenants.

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