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  1. #1
    Feniera is offline Member
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    Tenant makes "partial" rent payment

    What is the name of your state (only U.S. law)? Ohio

    New to the Landlord scene. I have a new tenant who has just paid me the second month of rent - but it is only a partial payment and is $75 short of the full amount ( he claims he went a bit overboard with Xmas gifts for the kids) . Lease calls for rent payment by the 5th and has a $25/day late fee clause. Lease does not have any verbage for "partial" payments of rent and how to deal with. Can NOT providing full payment still be considered late rent ? Am I within my right as the landlord to charge the full $25/day late fee if the $75 remains unpaid? I'm concerned this partial payment stuff is going to turn into a routine habit.What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?
  2. #2
    seniorjudge is offline Senior Member
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    What does your lease say in answer to your questions?
    There are two rules for success:

    (1) Never tell everything you know.
  3. #3
    Feniera is offline Member
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    My lease agreement makes no reference to "partial" payments and does not distinguish between a "apartial" and a "full" payment anywhere. It's a standard lease agreement with some tailoring, but does not deal with partial rent payments.
  4. #4
    Feniera is offline Member
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    Rental agreement states: "the tenant agrees to pay a monthly rate of $XXX. Payment shall be made on or before the 5th day of each month, for that months during the entire length of the agreement. Should tenant be 1 day late, the tenants shall be liable to the landlord for $25/day as a penalty. ~ no partial payment contingency!
  5. #5
    Zigner is offline Senior Member
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    Quote Originally Posted by Feniera View Post
    What is the name of your state (only U.S. law)? Ohio

    New to the Landlord scene. I have a new tenant who has just paid me the second month of rent - but it is only a partial payment and is $75 short of the full amount ( he claims he went a bit overboard with Xmas gifts for the kids) . Lease calls for rent payment by the 5th and has a $25/day late fee clause. Lease does not have any verbage for "partial" payments of rent and how to deal with. Can NOT providing full payment still be considered late rent ? Am I within my right as the landlord to charge the full $25/day late fee if the $75 remains unpaid? I'm concerned this partial payment stuff is going to turn into a routine habit.What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?
    I believe that your $25 per day in late fees is likely unenforceable in your state.
  6. #6
    Feniera is offline Member
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    Why would the $25/day late fee likely be unforceable in my state? I obtained that clause from a friend who is a realtor and rents out two properties. Advise.
  7. #7
    Zigner is offline Senior Member
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    Quote Originally Posted by Feniera View Post
    Why would the $25/day late fee likely be unforceable in my state? I obtained that clause from a friend who is a realtor and rents out two properties. Advise.
    Google Ohio rent late fees
  8. #8
    seniorjudge is offline Senior Member
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    Route:

    * Ohio Revised Code
    * TITLE [53] LIII REAL PROPERTY
    * CHAPTER 5321: LANDLORDS AND TENANTS

    5321.14 Unconscionable terms.

    (A) If the court as a matter of law finds a rental agreement, or any clause thereof, to have been unconscionable at the time it was made, it may refuse to enforce the rental agreement or it may enforce the remainder of the rental agreement without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.

    (B) When it is claimed or appears to the court that the rental agreement, or any clause thereof, may be unconscionable, the parties shall be afforded a reasonable opportunity to present evidence as to its setting, purpose, and effect to aid the court in making the determination.

    Effective Date: 11-04-1974


    http://codes.ohio.gov/orc/5321.14
    There are two rules for success:

    (1) Never tell everything you know.
  9. #9
    Who's Liable? is offline Senior Member
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    Quote Originally Posted by Feniera View Post
    Why would the $25/day late fee likely be unforceable in my state?
    Because it does not set a cap on the amount owed to the LL, thus it may be unenforceable becuase the amount due could technically be more than the cost of rent.


    Quote Originally Posted by Feniera View Post
    I obtained that clause from a friend who is a realtor and rents out two properties. Advise.
    Maddoff was a GREAT investor... Would you follow him now?

    Don't be lazy, do your homework and you won't fall into these problems...
  10. #10
    Feniera is offline Member
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    OK, so the implication is that $25/day in unconsionable and that I should invoke some sort of cap on the penalty, if indedd it is enforcable at all . Still doesn't answer my question about getting a "partial" payment. If I get a partial rental payment and not the full amount, are my tenants in breach of the lease???
  11. #11
    Zigner is offline Senior Member
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    Quote Originally Posted by Feniera View Post
    OK, so the implication is that $25/day in unconsionable and that I should invoke some sort of cap on the penalty, if indedd it is enforcable at all . Still doesn't answer my question about getting a "partial" payment. If I get a partial rental payment and not the full amount, are my tenants in breach of the lease???
    If $xxx was due on the 1st and they only paid $75 less than $xxx, then they ARE in default. You would need to pursue this issue per the applicable LL/Tenant laws in your state. Research them.
  12. #12
    Feniera is offline Member
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    Already on it. I'd like to wait a few days to see if they do pay the money. The next step would be to send them a letter stating they are delinquent. Yes, I agree, I will research the the laws - your suggestion to google Ohio late rent fees has been a good start. I was hoping these renters were not going to be troublesome. I knew they were cash poor, but they are only into the second month of occupancy. Kind of a curveball. It'll be interesting to see if they produce the remain rent in the next few days.
  13. #13
    Gail in Georgia is offline Senior Member
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    And if you quickly tire of chasing these tenants for their full rent, attached are the guidelines for filing for eviction in your state...

    [url=http://www.rentlaw.com/eviction/oheviction.htm]Ohio Evictions[/url]

    Gail
  14. #14
    Alaska landlord is offline Senior Member
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    Quote Originally Posted by Feniera View Post
    Already on it. I'd like to wait a few days to see if they do pay the money. The next step would be to send them a letter stating they are delinquent. Yes, I agree, I will research the the laws - your suggestion to google Ohio late rent fees has been a good start. I was hoping these renters were not going to be troublesome. I knew they were cash poor, but they are only into the second month of occupancy. Kind of a curveball. It'll be interesting to see if they produce the remain rent in the next few days.
    If you want to stop your tenants from stringing you along, do not accept partial rent and issue a "pay or quit notice" the day after the rent is due. If they protest, just tell them its business and if the rent is not in by the state required deadline you file the day after. Don't say it if you don't mean it or you just made matters worst.

    If you rent to "cash poor people" you are willfully entering into a relationship where you will ultimately get screwed.
  15. #15
    Feniera is offline Member
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    The good news it that they will be dropping of the remainder of the rent to me today, probably at my office. On the downside yes they are cash poor, but the lease is for 12 months, and I own the house outright, so if they default during any month and don't square up, they will have to move in ten months. The place doesn't have a mortgage & I can easily cover the taxes & insurance it I had a lapse in renters.

    I just do not like being taken advantage of......

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