Handling Tenants Who Are Late on Rent
In a perfect world, you would be able to manage your rental properties stress-free. But the reality is that disputes are just a part of everyday life. Tenant-Landlord relationships can be prone to disputes.
These disputes can be especially tenuous when handling tenants who are late on rent, or worse, refuse to pay. There are a few things you should do in order to protect yourself when such a problem arises.
Perhaps the most important thing you should remember is that, whether you are the landlord, or you are managing the property, collecting rent is your job. Allowing emotions to get in the way by trying to reason with or make accommodations for your tenants will make it more difficult for you to eventually collect their dues. That said, it is imperative to know the terms laid out in your contract.
Once a tenant is late on rent, you should begin documenting the steps you have taken to receive payment. Take note of any notices delivered and any meetings or messages that occur with the tenant.
Also, it’s imperative to know state statutes concerning landlord-tenant relations. You must follow Illinois law explicitly and be aware of any local ordinances regarding tenants. Under Illinois law, once a tenant defaults on a payment, the landlord can deliver a five-day notice. This notice should include:
The amount due
Acknowledgement that the tenant has a right to pay during that period
Notice that continued nonpayment will result in eviction proceedings
Notification that "Only FULL PAYMENT of all amounts demanded in this notice will invalidate the demand, unless the person claiming possession, or his or her agent or attorney, agrees in writing to withdraw the demand in exchange for receiving partial payment."
When delivering this notice, it’s key to understand that the five-day window begins, not when the rent is late, but when the notice is delivered personally to the tenant or by leaving such a copy with some person of the age of 13 years or upwards, residing on, or being in charge of, the premises. In addition, agreeing to new terms for the payment is acceptable under Illinois law.
Unless there is an agreement between the landlord and the tenant for partial payment, the tenant must pay the entire amount demanded, otherwise, the landlord maintains the right to terminate the lease. Regardless of what you decide as the landlord, document any partial decision contracts thoroughly.
If, after the five-day period is up, your tenant has not paid in full or met your partial payment demands, you have the right to terminate the tenancy.
Specific procedure for terminating a contract for violation of lease agreement varies from state to state. In Illinois, you must give tenants a 10-day notice of eviction.
Assuming the eviction process goes smoothly, Illinois law permits landlords up to 45 days to release the security deposit funds. This process begins only after the tenants leave the property. However, landlords can take money out of the deposit to cover any unpaid rent.
There are many traps and pitfalls that affect your ability to evict a tenant if Illinois law is not followed correctly. But if you’ve followed these guidelines intently, and still haven’t found a resolution, a legal remedy may be necessary. For guidance on landlord-tenant law, contact Less Scott Perres, P.C.
