Property rentals are some of the most stable and profitable businesses that one can use as a reliable investment. However, this business’ profitability and stability will depend on the timely payment of rent by tenants, in addition to a good location and a fair rental price. And that is why serving a notice of late rent to your tenants will remind and obligate them to pay their dues on time. Continue reading this article to know more about the basics of late rent notice. Read More
Tenants are likely to forget the terms and conditions of late rents in their lease. Whether it’s a residential lease or not, reminding them of any missed payments is an absolute necessity. A notice of late rent reminds tenants of rents that have long been overdue. This notice shows tenants the dates and amounts due for the rental period and includes instructions on how to settle them.
Also known as a notice to pay rent or quit, a notice of late rent reminds tenants of the consequences of failing to pay the overdue rent on the date specified by the landlord. Such effects include the eventual termination of the lease and the eviction of the tenant. Landlords can also take legal actions for the compensation of loss and damages to the premises. Furthermore, landlords send a notice of late rent to the tenant as a chance to remedy the situation before the formal eviction process.
How to Write a Notice of Late Rent
Provisions about late rents are always present in any lease agreement, including sub-leases. These provisions define the rent’s overdue period, corresponding fines, as well as the consequences of late rents. Despite that, some tenants may still miss their payments, hence the need to remind them. Now, here are the tips on how to write a notice of late rent for your tenants.
1. Address the Notice to the Tenant
Addressing the notice of late rent to your tenants indicates who its contents are for, and ensures the recipient receives the notice. To do this, write the name of the tenant and its rental address on the notice’s letterhead. Aside from that, you must also indicate the date you registered the note. Doing so allows the tenant to know that they received the notice and the period of its effectivity.
2. Mention the Lease Agreement
Notices are essential inclusions in the lease agreement you signed with the tenant from the start. So it’s important to mention the lease agreement and its effective date in writing a notice of late rent to your tenants. You can do this by saying that this notice was made following the terms under the lease agreement. Mentioning the lease agreement consolidates the validity of the notice under the terms and conditions of the said agreement.
3. Outline the Main Points of the Late Rent Notice
Next, outline notice’s main points after completing the previous steps. The notice’s main points are namely the dates of when the tenant’s rent is due and the breakdown of the amount due to the tenant—rent and late fee amount. It also includes the deadline for the payment of the rent, the corresponding late fee, and the consequences or penalties if the tenant fails to pay its dues.
4. Sign the Notice of Late Rent
Then, sign the notice of late rent after addressing it to the tenant and relating contents with the tenant’s lease. Signing the document consolidates the authority and validity of its contents, as well as your demands for the rent’s full payment. Apart from that, you can also let an authorized representative or agent, sign and demand for the late rent payment on your behalf.
5. Include a Certificate of Service
To give more authority to the notice of late rent, include a certificate of service to certify the notice’s receipt by the tenant or by their representatives. Certificates of service are statements that indicate the delivery and receipt of documents on a specific date.
Frequently Asked Questions
When is the best time to serve a notice of late rent?
The best time to write and serve a notice of late rent to a tenant is when they haven’t paid their rent on time. You should write and serve this document days after the tenant’s due date for paying the rent, according to the date reflected on the tenant’s lease. Serving a rent notice should be done in a period determined by you or as required by your state and local laws.
How many days should it take before rent is considered late?
A tenant’s rent is considered late if he or she fails to pay within a period determined by the lease agreement, days after the due date. It is during these periods that landlords serve a notice of rent to the tenant. After that, the landlord usually requires the tenant a minimum of 3 days to pay or quit. They do so, depending on their state and local laws.
Who should receive the notice of late rent?
A notice of late rent is usually served to the tenant who fails to pay their rent on time. Although the tenant must receive the notice as expected, others can also receive it on behalf of the tenant or in the tenant’s absence. They can either be the tenant’s family member or their co-occupants.
What are the consequences of not serving a notice of late rent?
Not serving a notice of late rent to a delinquent tenant could be a disaster for a landlord. This could cause the landlord to lose money and not be able to pay for the maintenance of the property and may cause a lot of stress and anguish for letting someone occupy the property for free.
What should notice of late rent include?
A clear notice of late rent always includes the following elements.
Address of the rental property
Amount of rent currently overdue
Date of when the tenant should pay the late rent or leave the premises
Contact information of both the landlord and the tenant
The timely payment of rent is the bread and butter that sustains a property rental’s stability and longevity. That’s why it’s always important for landlords to remind tenants of the rewards of paying their dues on time, and conversely, the consequences of failing to do so. Protect your rental property and business now by serving notices of late rent if the situation calls for it.