The most common issues that landlords run into with their tenants are late rent payments. And when it comes down to it, financial mismanagement is the main reason why tenants are either late on or unable to make their rent payments. As a landlord, it is essential to be aware of the common excuses that your tenants might give you when it comes to why they are late on their rent, and it is also important that you address whether or not they are managing their finances in such a way that making their rent payments is a priority every month. As property managers in Redding who have over 20 years of experience managing properties all over Shasta County, we would love to help you by making you aware of some of the most common excuses your tenants might give you when it comes to their late or unpaid rent payments.
1. I had to take care of some other major expenses. This excuse might be true. Your tenant might have other bills and expenses, and they might be doing their best to make their rent payments. However, these are things that your tenant should have calculated and figured out before signing a lease and moving in. According to the New York Times, if a rent payment costs more than 30% of a person’s income, it is unaffordable. Your potential tenants should know their income and how much of a percentage of their income rent will cost before moving in, and if they do decide to move in knowing it will cost them 30% or more of their income, that ultimately falls on them and they are still responsible for making their rent payments.
2. My paycheck hasn’t come in yet. Before you give a tenant a go-ahead on moving into your rental home or apartment, it is important that you find out if they have employment and a consistent income, and if so, that you verify that is true by contacting their employer references. It is also a great idea to find out when their paydays are so that you know for sure when they should be able to pay you to rent every month. If their payday is after the day that you have set for rent to be due and they are planning on paying their rent from that paycheck, they need to be aware that they will have to pay a late fee. Knowing your tenant’s income and paydays leave them without an excuse as to why there can’t make their rent payments. Even though this excuse might be true, this ultimately comes down to your tenants managing their finances and their paychecks in a way that they can pay their rent on time.
3. I lost my job. This excuse might also be true. However, your tenants are still responsible for paying their rent, even in the case that they have lost their job. If your tenants don’t have an emergency fund saved up in the case that something like this was to happen, that is ultimately their fault.
4. I had an emergency come up. This also might be true. Your tenant may have had had an accident and had some unexpected medical bills come up. Their car may have broken down. However, this still goes back to them managing their finances well and having an emergency fund saved up so that, in the case that an emergency does come up, they will still be able to cover their rent and expenses.
5. I have to pay for school. Even if your tenant is in school, they need to know what they are getting into and what their responsibilities will be if they decide to sign a lease with you. They will need to work and budget their finances in such a way that they can take care of their school expenses as well as their rent payments and avoid late rent payments.
If you would like more information on how you can best manage and collect rent payments from your tenants, or if you would like to hire a property manager to collect and handle rent payments from your tenants for you, give us a call at Authority Property Management. We do property management in Redding and Shasta County and we would love to serve you by taking the stress of collecting rent payments out of your hands! Give us a call at (530) 410-6085.
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