What is late rent notice and how to write it

Writing a late rent notice is an inevitable part of being a landlord. Late rent notices serve three purposes. First, it reminds the tenant to pay overdue rent immediately, informs about late fees, and then warns the tenant of the consequences of nonpayment. However, the late rent letter has another important purpose – it is a necessary formal document if you choose to begin the eviction process.

Of course, being a landlord is easier when all the tenants pay their rent on time. However, even the most diligent tenants can forget to pay their rent money until the first of the month. Of course, some tenants face severe financial difficulties and cannot afford to pay the rent. But in all cases, writing a late notice for rent is an important part of the rent collection process.

This article is a complete guide to deal with overdue rent and encourage tenants to pay rent on time. You’ll also find a late rent notice template and step-by-step instructions on writing a late rent notice.

What is Late Rent Notice?

Late Rent Notice is a legal document sent to the tenant informing them that their rent payment is late. The notice of nonpayment should include late fees and warn of possible legal action if the tenant does not pay the overdue amount and late fees within a specified time period.

The notice of past rent due can only contain the terms stated in the rental agreement. For example, the terms of a lease should include the following:

• monthly rental amount
• fixed date
• grace period (optional)
• Late rental fee will charge you (optional)

In addition, state laws govern the amount of notice you must give the tenant to pay the total amount due.

Also called a “pay or quit notice,” a late rent notice allows tenants to rectify the situation and stay in the unit. Hence, the letter also provides the steps to pay the rent, the total amount due and the deadline for payment.

Other names for a late rent notice include the following:

• Demand notice for non payment of rent
• notice to cure
• Demand for past due rent
• failure to pay rent notice

Why is it important to send a late rent notice to the tenant?

A late rent notice is an important part of the rent collection process to collect unpaid rent money. Formal notice to tenants proving that they are aware of the consequences of nonpayment of rent. Plus, it gives them a chance to sort out the situation without fear of eviction.

In most cases, you can expect to receive the rent payment immediately.

Here are three reasons why it’s important to send late rent letters when the tenant has missed payments:

• The formal letter reminds the tenant that overdue rent must be paid immediately.
• You can charge late fees, which can encourage tenants to make on-time monthly rent payments in the future.
• A late rent notice is an official document required in eviction proceedings.

Should You Always Send Notices for Late Rent? A quick phone call may be enough to solve the problem. For example, they may have become ill, experienced a temporary financial hardship, or may not have been aware of payment problems with their bank. Therefore, you can often resolve payment status without sending a notice.

However, there are a few things to consider about the importance of always sending legal notices of unpaid rent. These are the following:

• Tenants can get into the habit of missing rent due dates as it is of no consequence.
• Charging late fees motivates tenants to make payments on time.
• Failing to notify tenants about nonpayment of rent can make it difficult to evict a delinquent tenant.
• You have to run a business, and late rent payments affect your cash flow and cause you to miss paying bills.

When should you send late rent notice

You can send a notice for late payment of rent only after a certain period has elapsed. Local state landlord-tenant laws may determine how soon you can send a legal notice of late rent. In addition, some states have a grace period for nonpayment of rent. Usually, it takes five to 15 days.

You can send the notice the day after the due date in states that do not have a grace period for late rent payments. If the rent is due on the 1st of the month, you can send the demand for payment on the second day. However, you must give the tenant a certain amount of time to pay the rent. Depending on the state, it ranges from three to 14 days.

Some landlords specify a grace period in the terms of the rental agreement. Therefore, you should wait until it expires – usually between two and five days. Then, you can write and send a late rent letter the day after the grace period.

In most cases, it is best to contact the tenant in person before demanding payment. If the tenant promises to pay, wait a few days for the money to appear in your bank account. However, if you are considering eviction for nonpayment, send a proper notice immediately after the grace period is over.

Rent grace period by state

According to the lease agreement or state laws, the rent grace period begins on the day the rent is legally due. For example, if your state has a five-day grace period, and the tenant pays on the seventh day, they are charged a late rent fee for two days.

Without a state-mandated grace period, you can give a late rent notice and begin charging late fees the day after the rent due date. However, state rental laws specify that you must allow a certain number of days to pass before serving an eviction notice.

It’s good to note that states with no specified grace period generally allow grace periods to be addressed in rental leases.

Here’s a list of rent grace periods for each state.

How to give late rent notice to tenant

When serving a late rent notice to a tenant, it is important to follow the proper steps. The notice is an official document that may be required for an eviction lawsuit. Hence, double-check the terms of the lease agreement for late payments and charges. Next, check state laws for the accepted legal method of giving notice.

Generally, there are four ways of giving proper notice. These:

• send by certified mail
• Use Overnight Courier Service
• deliver the notice personally
• tape the document to the front door

Mailing the notice or couriering it is usually the best method of delivery because you have proof that the tenant has received the letter. This method can make eviction actions more successful because you can prove that the tenant received proper notice.

What should be included in the late rent notice

If you decide to send a late notice for rent, you must include all relevant details. For example, the notice must state the address of the rental property, the amount due, late fees, consequences and methods of paying rent. Remember – accurate information is important to prevent the tenant from disputing the eviction notice.

how to write late rent notice

Here are step-by-step instructions for including information when writing a late rent notice.

1. Exact rental address as given in the rent agreement
2. Names of all tenants named in the lease agreement
3. notice date
4. amount of rent payable
5. late fees you are charging from the tenant
6. Deadline to pay late rent and fees as per lease agreement and state laws
7. Acceptable Modes of Payment
8. Consequential action if payment is not made within the prescribed period
9. your signature

Double check the facts before sending the late rent letter. For example, have you spelled everything correctly? Are you sure a grace period has expired? Has the tenant violated the rent agreement? Have you given the tenant the required deadline to “pay or leave”?

Example of Late Rent Notice:

Here’s a late rent notice template that you can adjust to suit your needs.

Address:

Tenant:

date:

Dear [tenant’s name],

This notice is to inform you that from today [date of letter]We haven’t received your rent payment for so many months [insert the relevant month], is the outstanding rent payment for the period of [date] To [date],

Your rent was due in the amount of $__________ [rent due date], In addition, according to the terms of the rental agreement, you are responsible for a late fee of $__________. Therefore, the aggregate amount of rent and fees is $__________, and this amount is payable by [date],

The following forms of payment are accepted: [include the payment methods you accept]

• personal check
• money order
• cash
• certified check
• telegraphic transfer

If your rent payments remain delinquent, eviction proceedings can be initiated. However, if you have already sent the payment or believe it is a mistake, you can contact me [your telephone number],

sincerely,

[your signature]

[Your name]

[Address]

Late Rent Notice FAQ

How long should I wait before sending late rent notice?

Landlords or property management companies must send late rent notices the day after the grace period ends. The grace period may be in the terms of the agreement or may be mandated in state landlord-tenant laws. However, if there is no grace period, you can send the notice on the day after the due date.

Can a tenant be evicted for late payments?

Late payment of rent is a violation of the rent agreement. Therefore, a property manager or landlord may initiate formal eviction proceedings if the tenant fails to pay rent after receiving a “demand for nonpayment of rent” notice.

How do I stop late payments?

There are several steps you can take to reduce your risk of delinquent rent payments. The first step to paying rent on time is to specify late fees, a grace period, rent increases and acceptable payment methods in the lease agreement.

Additional ways to encourage on-time rental payments include the following:

• Thoroughly vet potential tenants before signing a lease.
• Send friendly reminders to tenants a few days before rent is due.
• Encourage tenants to set up recurring rent payments.
• Use a rent payment or property management app to collect rent from tenants.

What is considered proof of late rent?

A late rent notice is the best way to prove that the tenant has not paid the rent on time. The eviction court will use these notices to establish a pattern of late rent payments, which will strengthen your chances of evicting the delinquent tenant. Before starting the formal eviction process, it is always best to seek legal advice.

Can I allow the tenant to split the rent payment?

Accepting partial rent payments is a tricky area for landlords. For example, let’s say a creditable tenant is experiencing financial difficulties. In that case, a payment plan can help them get back on their feet and pay rent in full. The bonus for you is that you keep a good tenant. First, though, you need to put everything in writing in a lease addendum.

Some landlords allow partial payments during the month so tenants can pay in installments. This payment system is ideal for the self-employed or workers in the gig economy. However, the rental lease should clearly mention that the rent should be paid in full by the 1st of every month.

But what if you have started eviction proceedings against a delinquent tenant? In such a situation, it is not wise to accept partial payment. Accepting partial payment may result in the eviction process starting again.

Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.