There are lots of questions to ask when renting an apartment, and many of the answers are already online. One of the most important questions to ask about (or look for in the lease), is what happens if you’re late on rent. The plan should always be to pay your rent on time, but mistakes happen, and it’s good to know up front what kind of consequences you might be facing. Some of these potential consequences are serious, so think carefully about what happens when you pay your rent late.
Late Fees
There’s a good chance that you will have to pay some sort of fee if you’re late on rent. Most rental agreements have a late fee clause, which will outline exactly what kind of extra charges you should expect. This is standard practice, and the same applies to almost every type of scheduled payment (loans, utility bills, etc.).
There are two main things to look for in the late fee clause:
1. How extreme are the late fees? Some property management companies hit hard on these, and they can build up fast.
2. Is there a grace period? Keep in mind that even if you pay after the due date and before a late fee is enforced, your payment will still be flagged as late, which could contribute to other problems.
It Goes on Your Rental History
Every time you make a payment, your property management company is keeping track of it in their software. If you’re the perfect resident and always pay on time, they know about it. If you habitually pay late, you can rest assured they know that too.
Often, these records are permanent. That means there’s some chance that your application for a new apartment could be declined in the future because you have a history of late payments. Many applications ask for the contact information for your past or current property manager. You can be completely assured that potential future property managers will be asking if you make payments on time.
You Might Be Risking Your Home
Depending upon how late you are and how often you’ve paid late in the past, you can be evicted for late payments. In Arizona, the eviction process can start in as few as five days after a landlord’s notification of non-payment. The landlord can also turn off utilities for your apartment. See Arizona Revised Statutes Title 33 for more information. Granted, that’s the most extreme case of what might happen if you fail to pay rent on time, but it’s absolutely a legal possibility.
Most property management companies will talk to you before filing to evict, but others might not be so courteous. As soon as you fail to pay rent when it’s due, you’re living somewhere without paying for it and have broken a contractual obligation. You’re facing serious consequences at that point, so it’s important to contact your property management company immediately if you’re late in paying rent for any reason.
Your Credit Score Might Drop
If things get bad enough, your landlord may report late payments to credit bureaus, which will almost definitely lower your credit score. You might not need that credit score now, but the effects will last well into the future. A bad credit score could make you get denied by future apartments, and make it hard to get any kind of loan (credit card, car, home, school). If you do get a low-credit loan, the interest rate will be much higher.
What If I Forget to Pay Rent?
If you forget to pay your rent, your property manager will remind you. Trustworthy Phoenix Apartments will let you know as soon as possible if there’s a problem. In many cases, they’ll even help you set up automatic payments so you can’t forget. If you don’t set up automatic payments, it’s good to at least set calendar reminders to help yourself remember. That way, you don’t have to worry about the consequences above.
What If I Can’t Pay My Rent?
If you can’t pay your rent, don’t try to hide from the property management company. If they can’t get in touch with you, they may have no choice but to escalate the situation. Reputable property management companies care about their tenants, so explain the situation and ask for help.
Contact someone as soon as possible, and try to negotiate a partial payment or a date when you can pay. If you’re having this problem regularly, consider getting a roommate or a second job– the short-term sacrifice is worth it.
Phoenix Apartments for Rent
If you have additional questions about rent payments or anything else, contact Heers Management. Our friendly, educated staff will tell you everything you need to know about leases.