Owning a rental property can be an easy way to have a steady stream of side income. However, not all renters pay on time. When your tenants cannot pay their rent, what are the problems associated with accepting partial rent payments?
Since you allowed the tenant to only pay part of their rent, they may not be all that concerned with paying you the rest of the rent. They may repeat this behavior indefinitely. In fact, some states may consider allowing a partial rent payment as a renegotiation of the rent itself. To avoid confusion, have the tenant sign an agreement indicating when the remainder of the rent payment is due. This helps keep expectations in check and can help if you do need to start the eviction process.
Accepting a partial rent payment when you have already started the eviction process is a bad idea. Taking their payment forces you to restart the entire process over. The experts at Rent Rescue want to remind landlords to report to the Credit Bureaus any late rent payments. Simply knowing that late rent can affect their credit negatively can incentivize many tenants to pay on time.
Accepting partial rent payments comes with a few problems for landlords. Have a plan in place before you accept a partial payment.