Did I start a precedence? I am a new landlord in the state of Illinois.

[GeorgeS]

I am a new landlord in the state of Illinois with no experience and no contacts who could give me advice on this issue. As such, I came upon your website when looking for help and said WOW!

My first tenants are also relatively new (6 months now) and I need to know if I established a precedence that will cause me heartburn in the future. The lease states that the rent check is due on the first of the month with a late payment penalty if the check is not received by the 7th of every month. The rent check has always been received on time - until last month. When I called to tell the tenants on the 4th of the month that I hadn't received their check, they acted surprised and said we should have it by the 6th, and didn't they have until then, right? Because I want to be congenial and keep things friendly, I said okay.

Now, my question is: Did I set up precedence where I will routinely receive rent checks “in the nick of time”? I did ask a semi-aquaintenance in the field who gave me a brisk answer stating I could “serve the tenants with a 5-day notice” if I have not received payment by the first of the month.

I tried to compare the situation to a mortgage where the payment is due on the 1st but no late fees until the 15th, but I know that I’m looking at an apples-to-oranges comparison. Should I be content to get the check on the 6th of every month from now on out and leave it go at that? Or, run out and serve them with a notice next time the check is late?

Thanks!

[AFFA]

I wish to inform you that the terms of your rent agreement will govern your rent payment. In this regard your rent payment will have to be paid on first but as it is mentioned that the tenant can pay the rent by 7th and no penalty will be levied, therefore, the payment of rent can be made by 7th. In this regard, by specifically mentioning the fact that payment has to be before 7th you have allowed a grace period and penalty should not be levied during this period.

AFF

[sandyclaus]

Originally Posted by GeorgeS I am a new landlord in the state of Illinois with no experience and no contacts who could give me advice on this issue. As such, I came upon your website when looking for help and said WOW! My first tenants are also relatively new (6 months now) and I need to know if I established a precedence that will cause me heartburn in the future. The lease states that the rent check is due on the first of the month with a late payment penalty if the check is not received by the 7th of every month. The rent check has always been received on time - until last month. When I called to tell the tenants on the 4th of the month that I hadn't received their check, they acted surprised and said we should have it by the 6th, and didn't they have until then, right? Because I want to be congenial and keep things friendly, I said okay. Now, my question is: Did I set up precedence where I will routinely receive rent checks “in the nick of time”? I did ask a semi-aquaintenance in the field who gave me a brisk answer stating I could “serve the tenants with a 5-day notice” if I have not received payment by the first of the month. I tried to compare the situation to a mortgage where the payment is due on the 1st but no late fees until the 15th, but I know that I’m looking at an apples-to-oranges comparison. Should I be content to get the check on the 6th of every month from now on out and leave it go at that? Or, run out and serve them with a notice next time the check is late? Thanks!

By allowing your tenant to pay later and later each month without penalty, you are helping them to develop a bad habit. And your tenants could challenge you should it become an issue later on - after all, you let them slide enough to make it precedent, so why should they be made to comply now?

My best suggestion is to nip this in the bud once and for all. Send them a warning letter stating that they will receive a pay or quit notice if the rent is not paid on time in the future, and then enforce that. You'll feel better knowing that your rent will be coming in on time, and you will be teaching your tenants to follow the lease that they agreed to and help them to develop more timely payment habits.