What Is a Rent Notice?

A rent notice is a document that is prevalent in the real estate industry. A rent notice is also referred to in different ways, including late rent notice, notice to pay rent, failure to pay rent notice, demand for past due rent, notice to cure, demand notice for nonpayment of rent, notice to demand payment for failure to pay rent, demand for payment of rent, and notice to pay rent. The rent notice is a document that a property owner or a landlord writes to a tenant that informs them that their rent is past their due date. The rent notice requests payment from the tenant as soon as possible. While a tenant must take the document seriously, the rent notice is less formal than an eviction notice. It serves as a warning notice and courteous reminder that the rent is past due and that they can still pay their dues. If a tenant has only been late to pay rent for the first time, landlords can send it with the intention of being a reminder. However, when a tenant repeatedly misses their rent dues on multiple instances, the landlord or the property owner has the authority to write a rent notice, quit notice, eviction notice, or terminate the lease agreement. The late rent notice must include the rent amount and the late fees applicable.

According to data sourced from Statista regarding the number of renter-occupied homes in the United States from 1975 to 2021, an approximate 44 million housing units are under the occupancy of renters during 2021. The occupancy rate increases each year starting from 2010 up to 2021 from the information present on the bar graph.

Components of a Rent Notice

There is no standardized format for writing a rent notice to tenants. However, there are classic formats that landlords, property managers, and property owners use when writing a late rent notice. For the party that sends the rent notice, make sure that the tenant has enough time to respond to the notice and that they have options and opportunities to communicate the contents of the notice. For a tenant receiving the letter, make sure that the components are complete. The section below details the different components of a rent notice that must be present at all times to provide valuable information. It also provides additional details for a better understanding of each element.

Location: The location section indicates the complete address of the building or unit that a tenant rents. For the landlord writing the rent notice, make sure that the rental address is similar to the tenant address that incurs missed payment. There might be instances of misunderstandings due to the wrong unit number or address, so make sure to indicate the address of the tenant missing the payment.Overdue amount: The next component in the rent notice identifies the overdue amount of the tenant. For a tenant, make sure that the amount lines up with payment records. If there are inconsistencies with the amount, send back a letter to the landlord or property owner regarding the matter.Amount of late fee: The late fee amount is also necessary for the rent notice. The late fee in the rent notice is part of the agreed-upon terms of the lease agreement between the tenant and the landlord. Make sure that the fees correspond to the amount in the lease or rental agreement to ensure there are no misunderstandings during the collection process.Due date: The late rent notice must indicate the date when the rent payment is due. The rent payment that the landlord and tenants agree to must be explicitly visible on the lease agreement. The rent period that the two parties recognize normally spans 3 to 5 days. If the due date passes without the tenant paying the rent payment in full, including the late rent fees, the landlord can start the process of eviction for the tenant.Name of the tenants on the lease agreement: The late rent notice must outline the person or persons responsible for making the rent payments. All the individuals whose names are present in the rental agreement also appear in the late rent notice. If there is a tenant that does not pay their share of the rent with their name not present on the lease agreement, the people whose names appear on the agreement are the ones to be held responsible and accountable.Name of the landlord or property manager: The last section of the late rent notice contains the name and contact information of the property manager or landlord. Upon the receipt of the notice, a tenant must send a letter of receipt back to the landlord with an explanation regarding missed or delayed payments and any questions that they need the landlord to address regarding the rent notice content.

When To Use a Rent Notice for Tenants

A landlord or property manager has different ways to let a tenant know that they are late on their payments. As such, there are different options that they can use that result in them having a difficult time selecting which ones to give. Remember that when delivering a past due rent notice, secure a record of the date and process of giving the document. The section below provides helpful tips that a landlord or a property manager can use to determine which of the options they can use to address late rent payments.

Consider the applicable laws: Check with local laws regarding the landlord-tenant relationship provisions that can outline the type of notice that a landlord can use for specific situations and the process of delivering these notices to tenants. Make sure to check on these laws first and familiarize them, especially if the individual is on the side serving the notice.Consult with the lease agreement: Make sure that the lease agreement or rental agreement between the two parties informs tenants of the process if they are late on their payments. The lease agreement must also make mention of the entire process concerning settling the payments and what actions both parties perform to settle dues.Consider the late rent notice: If the first two do not apply to the tenant and landlord relationship, make sure to write a late rent notice to a tenant to inform them of late rent payments. Send the notice to tenants, especially if it is their first time missing a rent payment. Remember that the late rent notice does not necessarily lead to an eviction notice at a later date or any other progression of the situation. Instead, it serves as a quick reminder for the tenant to pay their dues.Use the pay or quit model: If the tenant is very late on their payments or is a repeat offender, instead of using a late rent notice, send a pay or quit notice. The pay or quit notice contains information about the grounds for delivery of an eviction notice to the tenant. If and when necessary, eviction has legal consequences, and the landlord or the property manager can upgrade the situation that is at hand.

How To Serve the Late Rent Notice and What Happens After

There are different ways for landlords or property managers to serve the late rent notice to tenants. Remember that when serving any notice to your tenants, check the local and state laws before beginning the process. Some details of the notice affect the implementation process of the rent notice, and it is necessary to adjust accordingly. The section below provides a helpful guide to help the landlord or property manager to implement or serve the late rent notice to a tenant.

  • 1. Serve Notices When Rent is Already Due

    The first thing to determine is when due dates for payment occur. Check the lease agreement or rental agreement that the two parties established at the beginning of the tenancy. Make sure that the tenant is aware of when rent is due to lessen the cases of misunderstandings. Rent is due on the specified date of the rent payment. The payment is late if it is on the day after the due date. This is the time when the landlord or a property manager writes up a late rent notice. However, if payment is still incomplete after three days, the pay or quit notice is the next document to send.

  • 2. Serving the Notice

    All residents or tenants with rent amounts still due receive a three-day notice to pay or quit notice the next. The notice to pay or quit notice forms must contain the complete and legal names of each adult for a home rental with necessary and accurate information. If the tenants do properly fill out the forms, local courts will have to restart the entire process which can cost about three months of rent. The landlord or property manager must personally hand the form to persons aged 18 and up, living in the rental unit or home. Anyone can receive the form so long as they are not under the age of 18. As an alternative, the landlord can send the notice through certified mail so they can have proof of the tenant receiving a copy of the notice. As the person sending the notice, make sure that you have an original copy of the document in case there is a need to file it at a later date as court documents.

  • 3. Do Not Accept Partial Payments from Tenants

    Landlords and property owners must remember that they are responsible for following a specific process. It also means that they can only accept rent payments in full after serving the three-day pay or quit notice period to tenants. If they commit the mistake of taking the partial payments for the rental property, the whole process will have to start once more.

  • 4. Begin the Eviction Process

    On the sixth day of the month, the landlord must gather all related documents and prepare to file the eviction notice to the tenant in question in a local court system. The necessary documents that the landlord needs include the original copy of the three-day notice to pay rent or quit, the original declaration of service, a copy of the tenant application completed after moving in, a signed copy of the lease or rental agreement, documents about the rent price increase through a rent raise and change of terms, and a copy of the rental agreement after these changes.

  • 5. Continue to Refuse Accepting Any Partial Payment from the Tenant

    In this stage of the process, the landlord must not take any partial payments from the tenant at any cost. However, if the tenant pays the dues and all the additional fees and costs, then the landlord can accept the payment. If they accept any form of partial payment, the entire process starts once again. As a result, it leads to major losses and a slowdown in operations for the business.

FAQs

Why is there a need to use a late rent notice?

A simple letter from a landlord that reminds a tenant of missing their rent payments may just be what they need to receive payment for their job. There are instances when a tenant just forgets to file their check for payment or come to the landlord and settle payment for the rental property. The notice is the quickest and most convenient way to remind the tenants, and maintain positive relationships for the duration of the lease or rental agreement.

When is the best time to serve a late rent notice to tenants?

Tenants receive late rent notices from landlords as soon as the rent payment is past the due date and out of the grace period. It allows the tenant to settle their dues and cure the breach of contract.

What is the best way to deliver a rent notice?

The best way to deliver a rent notice is through a written format, and these notices are made through in-person deliveries, through a courier service, or certified or registered mail.

Writing a late rent notice must not feel like a demand from the landlord. Instead, it should serve as a reminder for them to pay their dues on time. Serving the late rent notice must only be done after a tenant misses their due date. It is also advisable to extend a grace period for them to pay their dues to establish a positive relationship before sending them other notices. Construct a rent notice for tenants who miss payments by downloading the 20+ Sample Rent Notice in PDF from Sample.net.