I am wondering how many park owners out there have a strict policy or procedure that you follow for rent collection each month, more specifically if it is not collected prior to being late. Say rent is due on the 1st, and considered late with a late fee being due on the 6th. Say the rent and late fee is not received by the 6th. How long do you wait before you file for eviction? Do you give a notice prior to filing for an eviction hearing? How much notice do you give? Do you have a strict, follow it everytime type of policy on this? or do you file for an eviction only when you don’t want to let the tenant get any farther behind. if this is the case, how long do you wait? 2 monthes behind? more? less?
Here is why I ask.
I have owned a park for 8 years, the lower quality of 2 parks in a small town. Being the other park was nicer, tar road (mine is gravel) larger lots, paved parking areas, etc. I was always thinking that I had to deal with a bit more issues, or BS if you will from my tenants, otherwise, they may just move to the other, nicer park. I also kept my lot rent about $20 less per month for this same reason, figuring being I offered less amenities, my rents needed to be lower. Part of this is late rents. It is not uncommon for me to have several tenants not have their rent paid by the middle of the month, and even the end of the month. Its not uncommon at all to have tenants “double up” on rent after being a month behind. Or make small payments here and there to be applied to the back owed rent. This is getting to be a pain for me to track and quite honestly, I know my rent tracking gets off because of these partial payments made here and there. Typically they are paid in cash just slipped in my pocket and never recorded. Then a month or so later when I ask about the back rent, I get the: “well I paid you a $100 on the 18th”?
Maybe they did, maybe they didn’t, I can’t remember, so I give them the benefit of the doubt. Now they see this, and low and behold, next month its the same thing all over again and I really don’t know where I stand with this tenant and they know it.
I’m thinking I just need a strict policy that I follow to the letter of something like…
Rent is due on the first, If not received by the 3rd, I send out a notice mentioning that your rent is considered late after the 5th with a $25 late fee being added. Then I’ll wait until the 10th of the month, if no rent is received, I will then start the eviction process. Is this too quick? or harsh. How long do you wait until getting tough (filing eviction) with your tenants.
Also, being I have been so lenient as I have been for 8 years, is it too late for my tenants to change?
One more note, I have the nicer park across town under contract now, once I own that one, I would like to notify those tenants of my rent collection/eviction policy.
I’m curious to hear how others handle their late rents and eviction policies. How long do you wait to file for eviction if rent is not paid? Do you have a strict policy that you disclose and follow to a T? Has it worked?
Thanks