Property Management FAQs
Rent Collection and Tenant Rules
Reminders, late fees, Pay or Quit notices, etc. Typically, there is a 3 day grace period, then a late fee is added. 2019 Update: As of July 1, 2019, Nevada state law has capped late fees at 5% of the monthly rent amount. Our system automatically charges late fees on unpaid balances. If tenants don’t pay by the 5th day of the rental month, we send a process server to post a Pay or Quit notice and charge the costs to the tenant. These fees are specified in the lease.
If the Tenant does not pay within 7 judicial days after the Pay or Quit notice is posted, we file eviction with the court. Since we must wait 7 full judicial days after posting a notice, we normally file eviction in the middle of the month. We also have a reminder system for tenants and make other attempts to collect the rent before going to eviction. 2021 Update: Due to new state laws passed, all evictions with non-paying tenants are taking 3 months or more. Every tenant who is not current on rent must be allowed to apply for rent assistance, and landlords cannot refuse to participate in the rent assistance program.
NEW for 2022: Credit Reporting! Starting early 2022, we will report ALL tenant rent payment patterns, including on-time, late, missed payments, and even unpaid debt after move out. Most property managers can only report positive payment history, IF the tenant opts in. Our new program will allow us to automatically report all payment histories to TransUnion and Equifax. Tenants will not need to opt in. We believe this will encourage more on-time payments, plus help us with attract more responsible renters.
We do. Here’s why: Our management fee is dependent on both owners and tenants abiding by the rules. When tenants pay late, this causes a lot of extra work for us. We must spend time and resources sending notices, listening to their sad stories and complaining, repeating the lease terms, collecting certified funds, spending extra time to deposit the certified funds, and so on. The late fee is our compensation for that extra work.
Furthermore, Late Fees are not a profit center for us. We don’t want to deal with late payers’ stories and excuses – we would prefer to avoid that disruption entirely. We make every effort to place good tenants who pay their rent. In fact, almost every late payer we’ve had, was an existing tenant when we took over a rental property, not someone we placed. When tenants pay late, we work hard to collect so we can get owners paid on their correct payment date. The owner never notices the late payment unless the tenant does not pay at all. Bottom line: we do all the work to collect, and it is an extra service, so we keep the late fee.
If this is a dealbreaker for you as an owner, we invite you to find another property manager who will bend more easily. However, we would question how great an advocate they will be for you, when they have to deal with challenging tenants.
We post a Pay or Quit notices on the 5th of the month (or the next business day after). After that, per Nevada state law, tenants have 7 full business days to pay. At that point if they have still not paid, then we file eviction (around the middle of the month).
Once we start eviction proceedings, we are evicting the tenant. That typically takes 1-3 weeks from the time of filing with the court.
COVID Update: Due to the ever changing rules surrounding evictions, we can not provide a timeline for the eviction process at this time. The Nevada state legislature passed a “temporary” law in 2021, requiring landlords to allow all non-paying tenants to apply for rent assistance before eviction. This means the eviction process can take 3 months or more. However, if the tenant qualifies for rent assistance, eventually the back rent may get paid. Additionally, once rent assistance is received, landlords still cannot evict for a minimum period following the assistance payment.
Yes. The lease governs how we handle tenant issues. If we take over management of a property with an existing tenant, their existing lease will govern, until we renew with our lease.
NO. We must follow the lease. An effective property management process involves following the contracts and enforcing leases at all times. We will not make exceptions for your tenant, as that is a potential Fair Housing issue. If you ask us to make exceptions for your tenant, we will give you the opportunity to make a graceful exit. We would question the integrity of a property manager who is willing to bend the rules for a tenant or client.
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