Tip of the Month - October, 2018
PARTIAL RENTAL PAYMENTS
Source: Property Management for Dummies
By Robert Griswold
Occasionally, you will
encounter a tenant who won't be able to pay the full rent on
time. The tenant may offer to pay a portion of the rent that is
due with a promise to catch up as the month proceeds. Your
written rental collection policy should not allow partial payments of
rent, and deviating from this policy is generally not a good idea.
If you do accept a partial payment, prepare the proper legal rent
demand notice for nonpayment of rent or draw up a written notice
outlining the terms of you one-time acceptance of the partial rent
payment, including late charges. Then give the legal rent demand
notice or written agreement when the tenant gives you the partial
payment. This way, you can be sure that the tenant understands
In most areas, the acceptance of a partial payment will void any prior
legal notices for nonpayment of rent. If you tenant is causing
trouble besides the delinquent rent, do not accept any partial payments
or you will have to begin your eviction proceedings from scratch….and
you can be sure that they will be difficult to serve again.
Be sure to apply your rent collection policies, including your late
charges, partial payment and returned check policies consistently with
all tenants. If you don't, you could be accused of discrimination
by simply allowing some tenants to pay late or by accepting multiple
checks from some roommates and not from others.
This web page was updated on 09/30/2018.