Property Management Blog - Tips, Articles and Advice from RentingYourHome.com

How often will a tenant miss a payment or pay late?

Statistically, 4-5 percent of all rent payments are made late for a variety of reasons. Sometimes the payment is only late a day or two; other times it never comes in. You can greatly reduce these numbers by putting tenants on automatic recurring rent payments, either through their bank, or through a rent payment program. Tenants no longer have to remember to mail the rent in and it comes every month, on time.  No more “Lost in the Mail” excuses. That means fewer headaches and more golf!

How often will a tenant pay late?

Statistically, 4-5 percent of all rent payments are made late for a variety of reasons. Sometimes the payment is only late a day or two; other times it never comes in. You can greatly reduce these numbers by putting tenants on automatic recurring rent payments, either through their bank, or through a rent payment program. Tenants no longer have to remember to mail the rent in and it comes every month, on time. No more "Lost in the Mail" excuses. That means fewer headaches and more golf!

Best Way to Win at Small Claims Court? Just Show Up!

I spent half the morning in the Somerville, MA small claims court, suing a broker who'd decided not to pay his debts. I'm not a court newbie, but I don't find myself there often and I was reminded again how much of small claims court proceedings (and life too) is just about showing up. About 75% of the cases were concluded on the spot, with no discussion, in favor of the one side that showed up. My guy didn't show and we chalked up another "win" for our side.

As a landlord, we often get caught up in "he-said, she-said" arguments over rent payments, damage to the property, and security deposits. The great thing about small claims court is that it's simple, you don't need a lawyer, filing fees are around $40, and most of the time the other side doesn't show and you win. Claims are capped at an amount that varies by state but usually around $2,000-$5,000, which is enough to cover most landlord disagreements.

I'm also a big fan of the "multiple fronts" theory of debt collection. Not only do we employ a professional debt collection company as soon as a debt is 30 days+ old, I'll file in small claims court, AND pursue an eviction if that's applicable. This gets the issue immediately reported on their credit reports (debt collection company), and gives you multiple chances to win in court–either money in small claims court, or them out of the property so you can stop housing them rent-free. Most of the time, bringing the full force against a tenant enables you to negotiate a settlement, e.g. "Tell you what, you owe me $1,000 but if you give me $250 and move out by next week, I'll drop the whole thing."

If you've never been to small claims court, I'd recommend you spend a half day there. Same for housing court. No question that it's a dreadful experience. But, you get a great sense of the process, how few people show up to their own court dates, and what kinds of excuses the judges hear every single day. Nobody likes to end up in court but it's best to be prepared.