Do you stick strictly to the lease terms immediately, or do you allow for some flexibility during the first month? I’ve been thinking a lot about the best way to set the “business relationship” tone during the first 30 days of a lease. While I haven’t had a tenant ask for a grace period or a late-fee waiver on their very first full month of rent yet, I want to have a clear policy in place before it happens.
I’m curious how you all handle this. On one hand, being firm on that first payment ensures the tenant understands the contract. On the other hand, moving is expensive, and some owners prefer to offer a one-time exception to start the relationship on a positive note.
Is a first-month late payment a “red flag” for you, or do you view it as a common moving-day hurdle?
My wife and I are also struggling with this at the moment. I am more on the side of giving the tenant flexibility, and my wife wants to set strict boundaries, a.k.a. be “all business”. I think the solution lies somewhere in the middle depending on the tenant and the situation.
I think it boils down to communication. For example, if your tenant doesn’t let you know that rent is going to be late, or even worse, flat out lies about payments that don’t happen, then it is difficult to have any empathy for what they’re going through. I would encourage cutting ties as swiftly as possible in this type of situation. On the other side of the coin, I am more than happy to work with a tenant who brings up an issue and communicates their plan to work through it. Times are tough, finances aren’t always stable, and life will inevitably throw you a curveball. As I told my wife, if we get rid of all of our tenants as soon as an issue arises, then we will never have any long-term tenants.
I just try my best to stay professional at all times. Make the rules clear and ensure they are enforced. I think a one-time exception policy is fitting in some situations, but certainly not all situations. If making an exception, give them a verbal/written warning and make sure to reinforce the terms of the lease. Note the “red flag” and keep it in mind when processing through any future issues.
In the end (and to answer your main question), I am more likely to be lenient during the first month of a lease when lingering questions and uncertainty may still be a true source of confusion.