Late Rent Notice 

As a landlord and owner of a rental business, collecting rent from your tenants is almost certain to be your highest source of income. Rent payments play a big part in ensuring that your investments are paying off. So, when there are difficulties with late or missing rent payments, it can have a significant effect on the health of your business.  

It is for this reason that you want to be vigilant about late rent payments. This article will give you a better understanding of why to use a late rent notice and how to prevent an overdue rent payment in the first place. Download Innago’s free late rent notice to start communicating better with tenants, fairly enforce late rent fees, and avoid eviction proceedings. 

What is a Late Rent Notice? 

A late rent notice is a document that a landlord issues to a tenant in the case of a late or missing rent payment. The notice includes the outstanding expenses, including rent and any associated late fees that you may impose as per the lease agreement. 

A late rent notice template typically includes a space for both the amount owed in rent and in late fees. It is important to remember that certain states have laws regulating late fees, both regarding their amount and any grace period during which no late fees can be imposed. It is important to read up on your state laws and ensure that any late fees you enforce are compliant with the law.  

When is a Late Rent Notice Used? 

A late notice for rent should be issued once a grace period, either one that you enforce for your tenants or one required by law, has elapsed, if a tenant has still not paid their rent. Required grace periods vary by state, but in most areas they are between 3-7 days after the deadline to pay rent. 

There are several reasons that a tenant may not have submitted a rent payment on time, and they are not all instances of negligence or malice. A tenant may be out of town or between jobs, for instance. Late rent notices are designed to notify a tenant of the importance of paying their rent on time and ensure a documented communication between the landlord and the tenant. Giving the tenant time to rectify the issue after sending a pay rent notice before escalating to eviction is an effective way to preserve a good and effective relationship with a tenant.  

Note: This is not an eviction notice. Eviction notices for nonpayment, sometimes called pay-or-quit notices, are dictated by your state’s laws and must be delivered and documented in a special way. They are often required to be sent via certified mail, and most are associated with specific notice periods. While eviction notices initiate the eviction process, a late rent notice simply notifies the tenant that their rent is late. 

Who is Involved in a Late Rent Notice? 

There are only two parties involved in the issuance of a late rent notice: the landlord and the tenant. This is intentional, designed to ensure that there is documented communication between the two parties before there is any escalation that would involve third parties in a legal eviction process. Rent notices are meant to be private communications that the tenant has time to resolve.  

What is Involved in a Late Rent Notice? 

As previously mentioned, a late rent notice template includes a warning that the tenant is late on rent, the amount the tenant owes in overdue rent, and any other additional late or outstanding fees as per the rental agreement. 

Otherwise, the elements that make up a typical late rent payment notice are very straightforward. It is essential that both parties—landlord and tenant—are both clearly identified, as well as the rental property address. Filling in the date of issuance is also important, as it confirms that the notice is being sent in a timely fashion after the necessary grace period has elapsed. 

Late Rent Notice FAQs 

What If a Tenant Still Doesn’t Pay? 

If you issue a late rent payment notice and the tenant continues not to pay their past due rent, it may be time to send a pay-or-quit notice to initiate the eviction process. A notice to pay or quit is a formal document sent to the tenant notifying them that they must either pay their overdue rent or move out of the property to avoid eviction. As with late fees and grace periods, the laws concerning how to initiate the eviction process vary in each state, so it is important to review these regulations carefully. 

How Can Landlords Minimize Late Rent Payments?  

While late rent payments can sometimes be attributed to situations outside of a tenant’s control, there are certain measures that a landlord can take to decrease the risk of a tenant being unable or simply forgetting to pay their rent in a timely manner.  

Completing a thorough tenant screening process that includes investigating a tenant’s income and creditworthiness makes it more likely that you are signing leases with tenants who will regularly have the means to pay their rent on time.  

Setting up regular automatic online rent payments using property management software means that even if a tenant forgets that rent is due on the first of the month, the money is automatically withdrawn from their account. Property management software can also automatically charge a late rent fee when appropriate and reject payments during the eviction process so that you don’t accept partial rent payments and risk legal issues.

If you are unable to do that, simply sending out regular written reminders, either through email or in-person, could ensure that a tenant has enough time to pull rent together by the payment date even if they initially forgot about it.  

Conclusion 

Issuing a late rent notice helps to ensure that you reliably receive rent payments on time, thus preserving the most significant source of income to your rental business. It also establishes documented communication that will help you if you end up having to deal with the legal complications of the eviction process. One of your most important jobs as a landlord is to establish and maintain clear communication with your tenants, and Innago’s late rent notice template is designed to help you do just that. Take advantage of this free resource and make that communication just a little bit easier.

  

Innago does not provide legal advice. This article is for educational purposes only and may not include the most up-to-date information. We recommend you consult with professional counsel if you have legal questions regarding your compliance with relevant laws.