If you've got rental property
 

So let's say you've got a property that you plan on renting out. The rent is due on the first, which most are. 9 times out of 10, the tenant won't pay before the first... so; Does that mean, I have to cover that mortgage (so won't be late) for the first? Then once the tenant pays me, I deposit that check. That's the only I see doing it without incurring a late fee from the bank or lender. I doubt the lender or bank gives 2 shits... they want their $$ on the first.

1. Legally you can make the due date any date you want.
2. Your tennet should always be 1 month ahead in rent i.e. paying for their next 30 days on due date.
3. You should make your mortgage company also one month ahead to cover your ass.
4. Some mortgage companies will allow you to change your due date for a small one time fee.
5. You can very easily get your tennets to pay you before rent it due with the proper insentives. We give a 25.00 discount if they are paid in full one week before the actual due date. Which by the way the due date is listed as the 28th of the month. Rent that is late meaning 29th or latter has a 50.00 late fee.

That's exactly why I could never be a landlord. Nothing in this world could ever make me force someone to be homeless so I wouldn't even get paid NEAR the first. I'd probably never be paid at all. :(

But yes, you'd have to do whatever it took to pay the mortgage on time. The bank won't make any concessions because of tenants failure to pay by the time you need them to.

my guess is that the tennants scheduled payment date and the mortgage due date should be several weeks apart so that you can collect from the tennant (knowing that they'll lag on the due date) and still make your mortgage payment on time.

I'm renting out a room in my house very shortly. I'm thinking of setting the due date to the 28th covering the upcoming month. I have to pay on the first for the upcoming month and really don't want to run out of pocket all the time.

Curious since you have this question. Have you considered what will happen when your unit goes vacant or worse goes vacant and is in need of serious repair?

Rooms are better to rent week to week instead of month to month. :2 cents:

I've got reserves and I don't have a 30yr mortgage

If you cant afford to make the payment whether the tenant pays you this month or not, you shouldnt have the property.

Reserves are good. Time of mortgage does not really mean much as long as its being paid for.
I have been doing the rental thing for sometime and have seen it all.

Why do you say that?

Over the past 3 years I've only had one person that had trouble with rent. They lasted about 3 months.

Rooms are different than a seperate unit. This gives you more leway in the eviction process if needed. Just in case you find you do not get along well with the person.

:thumbsup

Rental properties can be a very lucrative business, my best advice to you would be to hire a property manager to rent out your buildings and manage them/collect the rents. If you're too close to the tennants (as in collect the rents from them directly) you will be more succeptiple to giving them a break when they don't pay you on time.

When you seperate yourself from the situation you can be much more objective about the decisions you need to make and let your property manager deliver the bad news if need be.

I have little or no sympathy for people who don't pay their rents on time, I have a mortgage to pay and if they can't pay on time they are given 1 time warning and 2nd time they are on the street.

Simple as that...

DH

You're alot stronger than I am. Having been on the other side (not being able to pay) I can imagine that I'd almost rather die that do that to someone else.

I would rather set a sparkler off in my pee hole than ever deal with a property management firm again.

Its real simple. Rent day be paid, if 1 day late fee is imposed. On day 3 a three day pay or quit letter is sent via certified mail. Day 6 Sherrif serves an eviction notice.
When someone does not pay they are taking money off of my table.

Never rent to friends or family. Its asking for trouble.

To answer your original question, most mortgages are due on the 1st but a late fee isn't charged until the 15th, so you have a 15 day grace period. Check your statement to verify. All my mortgages are with Countrywide and it's that way. I send payments in 1st week of the month and haven't had any problems.

Yeah, I understand it's simple for some. But personally I wouldn't see dollars living in my house, I'd see people, human beings. That's exactly why I couldn't do it. Money be damned, I'd give my last penny to keep someone from being homeless if I could.

I struggle to understand it, but I just can't. So I don't do it. I leave the landlording to people who don't have such a weak heart. Heh

I have 21 rental homes. Rent is due on the 1st in everyone of my situations. My mortgage company could not give two fucks if the renter pays late or not. I pay my mortages on the 3rd regardless if I have the rent in or not. Not going to screw my credit because a renter is a few days or a week late. If you are not in a position to cover the mortgage without the renter you shouldnt be a landlord. Not talking to you specifically, but in general.

Landlording is not for everyone and you do fit the picture of someone who shouldnt be one. I do feel for people that I may have to evict and I do see them as human beings and not just money.
Ones heart for your tennets should be used when screening them. Check their finacials, their credit score, and their work history. Then make sure that your rent will not be more than 1/3 of the prospects monthly income. More often than not the reasons for having to evict a person due to non payment can be followed to a improperly screened tennet.
I have on several occassions found tennets who would of passed all aspects of the screening process except the 1/3rd rule and I either told them of some of my lower rent dwellings and would not rent that given unit to them or passed them onto another landlord who had cheaper rents. Then if they still somehow mess up I really know it is due to improper budgeting on their part.

All nice to say, but thats actually against the law. Good luck finding a Judge that will uphold that arrangement. The law is WAY on the side of the renter. It takes a 21 days to get a court day on the Notice to Quit. In which time the renter can pay and not be evicted.

Wish it could be done the way you stated... but it just cant.

Are you insane ? Property managers are the biggest scammers in the world

im like that too

sucks!

so true


>>>

Not at all.. When done right, they will save you some serious headache and if your time equals money, they sure are worth it

Heh, yeah. When I was younger I was offered a job as a property manager of a nice apartment community. It came with a free apartment with all utilities and a nice salary, too. But I had to turn it down because I would never have been able to do the things I'd need to do, like file eviction notices. I REALLY needed that apartment, too. But I just couldn't do it.

I mean, a family with kids, for example, where the husband loses his job and he gets another one but it doesn't pay enough to pay the current rent... how could I throw them out? I understand that most people have family or friends they can stay with temporarily. But my husband and I don't. If anything ever caused us to get evicted we would 100% have NOWHERE to go. I couldn't do that to someone. I just couldn't. :(

I would beg to differ. They are way to expensive, act more like a vacant landlord than anything I have seen, do not give a rats ass about your actual property, and are only really interested in seeing it rented at all times.

Not to mention how they can rip you off when it comes to repairs. When it comes to an investment, I trust no one other than myself to manage it.

Yeah I know. I tried a few when I first got serious about it. Never ever again. It takes very little time to manage them yourself.

Your mortgage will be due about the same time your rents are due! You should always try to be a month ahead on your payment. :2 cents:

excellent thread bumpy

If you are depending on the rent as the only way to pay hte mortgage you will lose the house.... Someone will fuck you and the next person might fuck you. Make sure you can afford to get stiffed twice and not lose your ass.

BTW - one time some some people didn't pay their rent so they got kicked out but the left their cat behind so it could piss and shit and destroy all the capret in their house. They were willing to kill their cat so my great grandmother (who was over 80 years old) had to replace all the carpet because she wouldn't let them live there for free.

Have fun with that.

Where do you think this is against the law? Have you ever done an eviction? This is how the Tenant/Landlord law works in the US, with slight variations by state. Where I live, it's a Demand for Payment & 7 day notice to Quit, then I file with the court, get my judgement, and get the sheriff to kick them out. Also, if I want to kick them out regardless of if they pay, I can just file a Notice to Quit Regardless of Payment. I'm speaking this based on experience. Where do you own property where you think this is illegal????

Not in California.

If you let somebody stay in your house for 14 days, no matter the circumstances, they build a "tenure", if you will. At that point, you need to file the paperwork for a 30 day eviction notice. They are legally allowed to stay for 30 days.

I tried it once with a schizophrenic roommate. It was hell. I had to call the police on him when I served the restraining order because he wouldn't accept it and tried claiming that he was the one who had the restraining order against me. Somehow the police convinced him that he needed to leave that day, even though legally he didn't.

There is nothing illegal with that at all and it has been done a few times using the courts. I think your mixing up the timelines for certain actions.
You can serve a 3 day or quit notice (some states may require 7 days) literally on the minute that their rent becomes delinquent.
After 72 hours from serving that notice on a three day which we do on morning of day four we have every legal right to pay the sherrifs office to serve an eviction notice. The time of the eviction will vary from state to state and nowhere in my post did I say the sherrif was performing a lockout on day four. An uncontested eviction notice gives the tennets thirty days before you can have the sherrif return and perform a lockout. A tennet of course can use the courts to extend the eviction process a considerable amount using a wide variety of tricks.
Only thing my post above claimed was on day four I begin the eviction process and I always use a sherrif to serve them the eviction notice. Using a sherrif to do so is not required by law, it just assists in the process in the event it goes challenged.

Yes in California the actual eviction portion takes a minimum of 30 days if your following the standard proceedures. When I say the standard proceedures I am not talking about using others to break the law. You can as a landlord use for example a cash insentive for them to be out in a week for example.

So instead of a 7 day notice where I live it's 30 days in California. Like I mentioned, it varies slighty by state, but the principal is the same.

Where I am at its a 7 day and can not be served until rent is 10 working days late. From that point they have 7 days to pay the rent which would put you at the 17th of the month. From there you serve them with eviction papers and they have 21 days to answer the complaint or their court date is on the 21st day. So now you are into the second month. Keep in mind... at any point during that time frame before their court date, they can pay the rent and stop all action. Even if it goes to court, most all Judges will give them a week to thirty days to pay what they owe unless of course you can show that the renter is damaging the home. You really have to prove that the renter is not going to ever pay. Now, if you get into the second month and they have not paid anything, then yeah. You have to refile, but you will get a judge to evict them at that point. Even then, the renter can pay in full and continue to rent from you.

I always believed there was a grace period on any payment due for mortgages, rent, etc.? But best to check with those who you have the mortgage with

:2 cents:

I hear your point on the emotional side of the issue, but we treat our properties like businesses. We've given an inch and the tenants take a mile.
We just gave notice to 2 apartments that they have to move out in 60 days for chronic late payment of rent. No more excuses, we warned them, they continued to pay late, and now they can get out!
We appreciate all of our tenants and treat them like customers, until they don't pay on time. i.e. we sent each family a gift basket during the holidays..

yeah just change the rent due date.