According to Central Florida Public Media, Orange County, FL, whose county seat is Orlando, saw over 15,000 eviction filings from January to early December 2023. Non-payment of rent is one of, if not the most common, reason for such legal proceedings.
As an Orlando landlord yourself, the last thing you want is to file for evictions, as these are costly, time-consuming, and stressful. Besides, just because a tenant fails to pay rent on the due date doesn't mean you should evict them immediately.
To that end, our team at Verandah Properties put together this rent collection guide. Read on to discover when it's okay for tenants to pay rent late and why.
1. It's Still Within the Grace Period
No city-wide or statewide law requires landlords to establish a grace period for rent. However, providing one is common among savvy landlords because it signifies goodwill and can help make tenants more likely to renew the lease. They typically range from three to seven days.
If your tenant has yet to pay rent but is still within the grace period, you cannot take any legal action. However, you can send them a reminder about the payment.
2. Renter Pays Within the Grace Period
If your tenant pays rent within the grace period, then great! Since they settled their dues within this timeframe, they still qualify for late fee exemptions.
3. Tenant Pays Rent With Applicable Late Fees
Orlando rent rules on late fees follow Florida Statutes Title VI Chapter 83 (Landlord and Tenants). Under state law, landlords can charge a reasonable late fee of $20 or 20% of the monthly rent, whatever is higher. However, a 20% fee can be too steep for many renters, especially those who pay $1,000 or more, so experienced landlords often charge less (between 5% and 10%).
If your tenant is late in paying rent (e.g., a day after the grace period) but they've included the applicable late fee, then that's acceptable.
4. Renter Has Always Paid Rent on Time
Another example of an acceptable late rent payment is if it's from a tenant who has always paid rent on time, has never given you trouble, and has been an excellent renter for a year or so. They might have only run into a financial problem and can pay rent soon. If they've gone beyond the grace period, reach out, ask them about the situation, and offer a solution (e.g., another week of extension without late penalties).
5. Tenant Pays Within the Notice Period
If you've exhausted all your options, your next step is to send the tenant a three-day notice to pay or quit. Issuing this is a prerequisite to the eviction process in Orlando, FL. Tenants can pay within the given period, but if not, and they don't leave, you can already file for eviction.
Struggling With Timely Rent Collection?
Although the five instances of late rent payment discussed above are allowable, it doesn't mean you should just keep letting your tenants miss their due dates. Otherwise, it would put your income at risk.
Our full-service property management firm, Verandah Properties, can help. We'll use our 20+ years of experience to find you excellent tenants, ensure efficient and timely rent collection, and minimize your risks of having to evict tenants.
Get in touch with us today, and we'll gladly provide you with a free property analysis!