Different landlords have different views on this subject. Some feel that if a tenant doesn’t pay the rent in full on the first of the month he/she should be evicted by the 2nd. This is a good concept but doesn’t always find itself in reality. First, in most states it is required that a landlord goes through a full court procedure before a tenant can be put out (a 3 day written notice does not suffice by itself). Also if you are dealing with middle-low income tenants (or any tenants) sometimes financial problems arise that make it not possible to have the rent right on the first. It might be wise to take into consideration several factors when making your decision/policy on late payments. First, is this a good tenant that has just had a one-time problem or is this a tenant that has caused problems repeatedly and is likely taking advantage (again)? Is it worth working out these problems with a payment plan or financially would it be better to get the tenant out and start over?
Take into consideration these factors:
Evcition costs: (in my part of the country)
– Eviction filing fee: $45.00
– Service of papers: $30.00 – $60.00
– Attorneys fee: $225 – $350
– Marshal to serve warrant: $50.00 – $100.00
Make-ready costs:
– Clean & paint & repair apartment: $200.00 – $800.00
Loss of original rent: $???????
Advertising for new tenant: $00.00 – $200.00
Loss of rent while apartment is vacant: $???????
If the tenant is generally a good tenant and agrees to a reasonable (in your eyes) payment plan beginning within a week it might be better to work this out as long as the payment plan is kept.