@Frank, thank you very much Frank. Here is some info...
We closed on January 3rd.
We gave an introduction letter to the residents announcing that we had bought the park.
We (together with the seller) sent an invoice and told them exactly how and where to deliver their rent at the end of 2016. We made it very clear, because we wanted to prevent the tenants from using the "Oh, I did not know" excuse.
We kept the same method of rent collection as the previous owner had. The tenants can only pay with check or money order, and they put their payments into a very strong drop box in the park. Rent has to be paid before the 5th. The current lease says $30 late fee on the 6th, and $2 extra every day after the 5th. We believe that this is illegal, because Minnesota law limits late fees to 8%.
We have not given them new leases and rules. We are working on these and will send them out before the end of this month.
We have not had our manager go to the tenants yet, but we are sending out a Notice to Quit before the end of the week.
I totally agree with you - the tenants definitely need to be educated about "no pay/no stay."
Something interesting about Minnesota..."Unless otherwise stated in the lease, rent is due on the first day of every month, even if the first is a weekend or holiday. A landlord is not required to give a tenant a grace period before charging late fees or beginning the eviction process. This means that if rent is not paid on the first day of the month, the landlord can file an eviction lawsuit with the court on the second day of the month. Unlike most states, Minnesota law does not require a landlord to give a tenant any kind of notice before filing an eviction lawsuit against the tenant. As soon as the tenant fails to pay rent when it is due, the landlord can file a complaint and summons with the district court of the county in which the rental unit is located. The tenant can stop the eviction at any time until the eviction actually occurs by paying the rent due and owing, any accrued late fees, and the court costs of the eviction lawsuit." Source: http://www.nolo.com/legal-encyclopedia/eviction-notices-nonpayment-rent-minnesota.html
Things being as they are, I think that we are not going to give a grace period going forward. We want to show that we mean serious business, and late/non payment will not be tolerated.