Termination Letter due to delinquency

DDP3

Just curious - How many of you are terminating tenants just because they consistently do not pay on time? (If yes - is that specified in your lease?)

I have a decent amount of people who will always pay in full, but only after they have been prepped for auction. (>10x)

I am currently at 97%, so at this point these piles just destroy my arrears every other month. I was just wondering how many others deal with the same situation

thanks in advance

MamaDuke7

I don't because I look at all the fees as extra revenue.  

But if you don't want the extra work, then just tell them you're not renewing their lease according to the terms of the contract.  You don't have to give a reason.

Or...as long as you aren't in an area with a State of Emergency right now, just double or triple their rent.  They'll move out right away!!!  (Or they stay and really pay for the privilege of being late!)

sonyawiprud

DDP3 said:

Just curious - How many of you are terminating tenants just because they consistently do not pay on time? (If yes - is that specified in your lease?)

I have a decent amount of people who will always pay in full, but only after they have been prepped for auction. (>10x)

I am currently at 97%, so at this point these piles just destroy my arrears every other month. I was just wondering how many others deal with the same situation

thanks in advance

I have the same problem, I do understand the "value" of keeping them and allowing them to pay the fees as extra revenue as MamaDuke pointed out but I'm with you, the cost of advertising them in public notice has gone through the roof here in San Diego County, and to be honest, I am just sick of the extra work involved, scheduling lock cuts when we have enough staff, and the real concern that they might lose their stuff is always present for me. Recently I informed a repeat offender that I would not allow him to go past 30 days anymore or we will have to terminate, he was mad but agreed, we'll see what happens in 25 days! 

teamcapitola

Could just raise the rent each time.... like 25% ... each time ... should cover the pain and suffering of dealing with the account?

sonyawiprud

teamcapitola said:

Could just raise the rent each time.... like 25% ... each time ... should cover the pain and suffering of dealing with the account?

That is what I have been implementing recently, we had to re-word our rental agreement to state that if delinquent, the rate will increase to the standard street rate and all discounts will be removed. I haven't actually increased it to the street rate.........yet, but I have been applying a percentage. More money for the owners of the company, same work for the operator.