First Steps to Take When a Fort Lauderdale Tenant Doesn't Pay Rent

Florida PMServices • October 30, 2020

Landlords need their tenants to pay on time. It affects your own financial stability and has a huge impact on your cash flow and ROI. When that rent stops coming in, it’s easy to panic. However, you have to remain professional and procedural. Don’t let your emotions take over. Consult your lease agreement, which should include a rent collection policy.

The goal is to get the rent paid as quickly as possible. Today, we’re talking about the first few steps you should take when your tenant doesn’t pay rent, and why it’s so important to screen tenants well before handing over the keys to your rental home.

Communicate with Your Tenants about Late Rent

Tenant relationships are crucial to a good investment experience, and rent collection is one of the areas that depend largely on an open, transparent relationship. When rent does not get paid, it’s important to reach out to your residents. Find out if they’ve just forgotten or if they’ve had a complicated few weeks financially and need a few more days to gather the funds together. It’s possible that this is a problem which will be resolved quickly, with a simple phone call or text message.

Always remind your tenants of your rent collection policy when the payment is late. If there’s a late fee or any other consequence, make sure you apply it consistently. Allowing tenants to pay late one month without penalty will only open the door to future late payments.

Sign a Payment Agreement

If your tenant has had an unplanned financial emergency and late rent will not be an ongoing problem, be willing to work with that tenant. This is especially important now, when so many moratoriums are still in place on tenants who are struggling financially due to COVID-19.

When a resident does agree to catch up with the rent in a matter of days or even in a week or two, that’s good news. However, protect yourself and hold your tenant accountable by requiring that a payment agreement be signed. The agreement should state how much is owed and when it will be paid and how it will be paid. Keep this on file in case the tenant doesn’t keep his or her promise and you need to take the next steps.

File a Three Day Notice to Pay or Quit

When your tenant refuses to talk to you about the late rent or the date of the promised payment comes and goes without the rent showing up, you’ll need to file a Three Day Notice to Pay or Quit. This effectively begins the eviction process in Florida, because you’re letting your tenant know that rent is overdue and they have three business days to either make a payment or move out of the property.

Usually, this will resolve the problem. If the tenant doesn’t want to be evicted, he or she will pay the rent before the end of the three day period, or contact you immediately to let you know when they’ll have it. The next step would be to file for eviction in court, and that’s not a lot of fun for anyone.

Screen Fort Lauderdale Tenants Thoroughly

You can avoid late rent payments with a solid screening process. Even good tenants who are well-qualified face money issues from time to time. But, if you screen them to be sure they earn enough income and have no history of evictions, you’re in a stronger position when it comes to collecting rent on time.

Working with professional Jacksonville property managers can also help. Tenants know they won’t get away with late rental payments when a professional management company is responsible for collecting that rent. If you’d like to hear more about how we can help, contact us at Florida Property Management Services.

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