Tip of the Month - October, 2018


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 your terms.

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.