Purpose
The following Delinquency Policy is put into place to clarify TruHome's timeframe and procedures for delinquent balances. All policies laid out below are put into place, not to harm tenant(s) or to force tenant(s) out, they are put into place to ensure that TruHome is clear with our stance on delinquent balances. We are a Property Management business, and for us to conduct our business, we must ensure rent payments and other monthly charges are paid on time.
We are more than happy to provide an assistance list with resources for tenant(s) that need help catching up on their bills. If this is requested, we will provide it, and request that tenant(s) provide proof that they are working with an assistance agency. This can be done by providing a letter from someone working on the case stating the Tenant(s) name, the date, brief message stating they are working with them, and what the time frame might look like to receive payment.
If the following Delinquency Policy is not something you agree with, please do not go forward with renting with us.
Delinquency Policy
I. Definitions
- Delinquent Balance: A delinquent balance is defined as any balance owed on a Tenant(s) ledger after the 5th of the month. This includes but is not limited to; Rent charges, RBP charges, Lease Guarantee Fees, Garage Rent, Pet rent/fees, Utility Charges, and Move-in charges. Per Lease Section 1.4: Rent is due by 11:59pm on the 5th of every month, with late fees going into effect on the 6th at 12:00am.
- Rent/Monthly Charges: Refers to any and all recurring monthly charges including, but not limited to; Rent charges, RBP charges, Lease Guarantee Fees, Garage Rent, Pet rent/fees, Utility Charges, and Move-in charges.
- 3 Day Notice - to Pay or Quit: An official notice that will be emailed, and Served to tenant, requesting tenant to either pay or vacate the premises. If the tenant does not Pay or Quit in those 3 Days, the Landlord will send their file to an Attorney and seek Eviction. The serving of this notice comes with a fee that will be billed to the tenant in the amount of $60.00.
- Eviction: the expulsion of a tenant from the possession of land/property/unit by process of law.
- Payment Plan: An agreed upon payment arrangement between the Landlord and the Tenant to cover the delinquent balance over a period of time.
- Promise to Pay (PTP): Occurs when a Tenant calls into office to inform the Landlord that they can’t make a payment on time, but offer a later date in which they will be able to make a payment.
II. Delinquency Procedures by date
A. 6th of the Month
- Any Tenant with a delinquent balance on their account on the 6th of the month will receive a text from the Landlord letting them know they have gone delinquent and that late fees have been applied. Landlord will also let the tenant know what will happen if the balance does not get resolved by the following review date.
- All tenants with a balance of 10% or less of Rent/Monthly Charges will be marked as “Payments must be made in full”. We will not accept payments unless it covers the full balance.
B. 9th of the Month
- Any Tenant with a delinquent balance, greater than or equal to Rent/Monthly Charges by the 9th of the month will be sent an official 3 Day Notice - to Pay or Quit, along with the associated eviction fees.
- Any Tenant with a delinquent balance equaling 70% or more of Rent/Monthly Charges, but less than total Rent/Monthly Charges on the 9th will receive a phone call from the Landlord with a warning of adverse action and next steps.
- Any Tenant with a delinquent balance on the 9th, equaling Less than 70% of Rent/Month Charges, will receive a text/email warning of adverse action and next steps.
- All tenants with a balance on the 9th, equaling 10% or less of Rent/Monthly Charges, will be marked as “Payments must be made in full”. We will not accept payments unless it covers the full balance.
C. 14th of the Month
- Any Tenant with a delinquent balance on the 14th, equaling 70% or more of Rent/Month Charges, will be sent an official 3 Day Notice - to Pay or Quit along with the associated eviction fees.
- Any Tenant with a delinquent balance on the 14th, equaling between 40% and 70% of Rent/Month Charges, will receive a phone call from the Landlord warning of adverse action and next steps.
- Any Tenant with a delinquent balance on the 14th, equaling 40% or less of Rent/Monthly Charges, will receive a text/email warning of adverse action and next steps.
- All tenants with a balance on the 14th, equaling 10% or less of Rent/Monthly Charges, will be marked as “Payments must be made in full”. We will not accept payments unless it covers the full balance.
D. 18th of the Month
- Any Tenant with a delinquent balance on the 18th, equaling greater than 10% of Rent/Monthly Charges, will be sent an official 3 Day Notice - to Pay or Quit along with the associated eviction fees.
- All tenants with a balance on the 18th, equaling 10% or less of Rent/Monthly Charges, will be marked as “Payments must be made in full”. We will not accept payments unless it covers the full balance.
III. Delinquency Procedures - General Procedures.
A. Tenant(s) will only be offered a Payment Plan option once per year. For the tenant to be eligible for a Payment Plan, they must meet with a Property Manager in person, and the balance on their account must not have reached a month (30 days) past due.
B. Tenant(s) that call into the office with a Promise to Pay (PTP) will be held to all of the same procedures laid out above. All dates and actions laid out above should be taken into consideration when making a (PTP).
C. If a Tenant under Eviction is given a court date, the Landlord will no longer accept payments on the balance. If the Tenant wishes to make a payment regardless, the Landlord will hold the payment and take it to the court appointment, which will then be put toward the final balance.
D. If a Tenant has 6 or more Late Payments in a year it will put them in the status of “Not eligible for Renewal”, meaning the Tenant will likely be Non Renewed at the end of their Lease.
Contact Us
If you have any questions regarding this Delinquency Policy or the procedures laid out here, please contact us by sending an email to zane@truhomeproperties.com Last Updated: This Delinquency Policy was last updated on 10/04/2024.