Accepting Late Payments Can Land You in Court
There are many reasons why you should not allow a tenant to pay rent late, but the legal consequences must always be at the top of the list. Unfortunately, because it was the nice guy or girl, and to accept late rent payments, you can down pleas for a fair trial residences. Last year I sat in a seminar from Milwaukee landlord-tenant lawyer Tristan Pettit, where I learned that the case law has determined that says you can not accept late payments from a tenant and not to accept late payment from another.
Fair Housing Act makes it unlawful to “set different terms, conditions or benefits for sale or rent.” By accepting the late payments from a tenant and not another, you can break the law.
Each trip to court can be uncertain and costly in terms of time and money. You can never be sure what the outcome of a trial or litigation will be. A good lawyer will tell you to avoid court altogether is always preferable.
To compound the problem of being sued for a fair housing violation, think about what you are doing to the terms of your lease by common accept late rent. Let’s say your rent, the rent payable by the third month. But for the past six months, have you accepted the rent on the fifteenth. Suddenly, in the seventh month you put your feet on the issue and demand that the rent paid by a third, but the tenant ignores you and continues to pay rent on the fifteenth. During the eight months, you can file for eviction when the tenant again is late with his rent.
If the tenant would hire a skilled lawyer to represent them, could easily lawyer to argue that you had changed the terms of the agreement by accepting the rent since the first six months of the lease. Not only would this be able to force you to continue to accept the rent, it can cause a counter suit.
Enforce the terms of the lease and require that rent is paid on time for every tenant. Doing so may keep you out of court.
The information in this article is provided for informational purposes only and should not be construed as legal advice. Consult a local landlord-tenant attorney to discuss your specific situation.
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