Due to consistent administration of rental qualification criteria, we are presenting qualified applicants to our owners and have not initiated eviction proceedings against a tenant in over a year.
We do occasionally experience late payments by tenants. With 250 properties currently under management, we average 3-4 tenants per month who pay rent after the 5th. Typically these tenants will have informed us in advance that they will be paying a portion of their rent late, and typically full payment is received by the 15th. If we have not received rent from a tenant by the 6th of the month, a late fee will be assessed and the tenants will be sent a legal notice demanding payment within 5 days to avoid initiation of the eviction process. Late fees collected will be forwarded to the owner. Any exceptions or additional grace periods must be approved in advance by the owner.
We also experience approximately 3 returned checks per month. We initiate rental funds transfers to the owners on the 7th of the month. Sometimes, a tenant's rent check is returned for non-sufficient funds after we have already transferred the rent payment to the owner. In this case, the tenants are assessed a return check fee and a late fee. Since funds have already been transferred to the owner, RPM Direct retains the late fee to cover bank charges associated with the tenant's negative account balance.
We understand that many landlords are relying on the rental income to apply towards their mortgage payment, so we treat rent collection and disbursement as one of our highest priorities. We offer numerous means for tenants to pay rent and make courtesy reminder calls to tenants who haven't paid by noon on the 5th. We balance the reminders with the need to maintain excellent rapport with our tenants. But the bottom line is.... we are serious about the need for tenants to pay rent on-time, and our tenants know that!