How to handle the late rent payments in California
The law concerning late rent payment in CA is around 30 years old. In 1978, Civil Code 1671 was revised to outlaw almost all late rent payments which are recorded in residential rental agreements. In general terms, a late fee is an additional charge that the renter has to pay on top of his or her rent, in case the aforementioned tenant has failed to pay the rent on time. It is basically a late fine.
Paying the fine for late rent payment in CA
The most common amount that is charged for committing the crime of making a late rent payment in CA is usually a 5% fee of the rent amount. Some property owners even have a different set of rules concerning extremely late rent fee. Extremely late is a situation where the tenant has failed to pay the rent for more than two to three weeks. In such cases, the property owners usually hike up the charges to ten percent instead of the usual five. One more normal late rent payment in California is where the tenant could accumulate the total charge and pay it back in the form of a bounced check fee. California regulations state that a property owner could charge the occupant a $25 fee for the first wrongdoing, and $35 for any supplementary bounced checks.
The modes of rent payment are also something which the property owner must look into. The preferred mode of rent payment needs to be mentioned in the Landlord Tenant Lease Agreement. Here are the four modes of rent payment that are the best –
Certified Check– The bank will confirm a check affirming that the renter’s bank account has the essential funds obtainable at the time of the check’s creation. Nevertheless, there is no assurance that the amount in the account will still be in the present when the property owner deposits the check. However, this form of imbursement is safer than a personal check and it is a part of the renters’ rights to certify his or her financial security.
Money Order– Receiving money orders is a great way of accepting rent payments. It is almost like accepting gift cards from the renter! It is a convenient method of receiving rents on a home for rent in Orange County CA.
Cashier’s Check– Much similar to a money order, in cashier’s checks there is a greater fee-related and they are only dispensed by a financial institution when the recipient actually has a bank account.
Online– Online payments which do not involve exposing private information such as banking codes and credit card numbers are nowadays seen as the most convenient method of rent payment, both by the landlords and by renters. It is rapid, the funds are mostly transferred directly or within days, and it is a very easy task. Property owners who cannot afford residential property management in Orange County CA tend to use this method because of its ease and convenience.
Avoiding late fees serves the best interests of both the property owner and the tenant. The Landlord Tenant Lease Agreement is one of the most crucial tools in ensuring that late payments are avoided. This agreement serves as a contract which guides both parties to act considerately and cooperatively.
Steps to handle late rent payment in CA
- Notify the tenant immediately. Send a late rent payment notice.
- Determine to find a solution which does not entail the law (settle for a compromise, EMI payments in case of a financial stress period for the tenant).
- If the tenant still does not pay, the owner has to start the process of eviction.
While eviction and fines are the general consequences of late rent payment in CA, it is a scenario best avoided, which is why property owners are advised to conduct thorough rental applicant screening.
Goodman Management Team has gained widespread acclaim by delivering reliable and successful solutions in tenant screening, handling late rent payment in CA, lease agreement, property maintenance & repairs, tenant eviction, and so on. The team’s immense reputation has been down to its commitment towards delivering the finest transactions for the customers, by offering treasured services at economical rates. Operating currently in Orange County CA in the cities Orange, Yorba Linda, and Anaheim, Goodman Management Team has set high standards for property management businesses all over the county.