HOW TO DEAL WITH LATE LEASE PAYMENT

Introduction

The cash balance must be at an optimal level at all levels for every organization to sustain its peak output. After all, there are all sorts of recurring costs, including renting of office rooms, energy bills, financing of inventory, and payments to suppliers and workers. So, even though there is a cash shortage, it will bring the whole company to a standstill for a fleeting moment. A vast majority of B2B firms require timely payment clearances to remain optimistic about cash flow. However, an agreement can not necessarily be set up, so options such as advance payments and invoice discounting can help. A dedicated invoice processing package for better monitoring is also highly recommended.

Methods

1. Penalty- Penalizing a client for their undesired behaviour is one of the simplest ways to deal with late payments. However, organizations still deal with most problems, and it's entirely fair. When a customer is aware of a penalty’s involvement, they will ensure that when the time arrives to clear the invoices, then the highest priority is yours. In these cases, of course, levying a fine for late payments wouldn’t work. For example, certain consumers purposely withhold payments because they are not pleased with the services they offer, although they may not immediately voice their disappointment. The application of a fee for late payment will potentially make matters worse and exacerbate the issue in a case like this.

2. Discount- Discounting invoices is a tried and tested solution that can quickly bring an end to all late invoices’ woes. In this, the invoice can be submitted to a lending company, and a certain amount of the invoice value can be disbursed. The money will then be returned later when the financer releases the outstanding amount minus a regular charge. This one is very fair and reliable as far as working capital options go. After all, it would be help if you forget about all the cash flow disruptions for a nominal fee. And if the consumers are lazy and overdue invoices are piling up, one will have the funds pouring in. An example of this is KredX, a new-age invoice discounting site where the invoices can be exchanged at affordable prices to satisfy working capital needs.

3. Notice- This lets them know two things that, anytime a homeowner can get an official note to either provide a rent payment or vacate the property. First of all, the person means business and would not tolerate their present actions. Second, if they do not start paying their rent on time, they will lose their apartment. It is essential to give this kind of note, and it should always be the last resort. To defend oneself from the retaliation of a lawsuit from the landlords, log their late payments before an attempt to evict a resident. Some persons will contest a notice of eviction, and this paperwork will go a long way towards proving the case. The easiest way to prevent customary late fees is to explicitly specify what is deemed to be late payment in the leasing arrangement and what steps will be done if the agreement is violated. Before they launch, this will avoid problems.

4. Authentic Documentation - If one plans to evict the occupant or even bring a lawsuit to reclaim the outstanding rent, one would need to legitimately support the allegations with proper documents. Make sure that the agreements and notifications are issued in writing and in person. To display the tenant's payment history, keep track of all the rental payment receipts, particularly if they have a habit of paying rent late. If it is agreed to allow the homeowner, in particular conditions, to refund the rent at a later date or in conditional installments, ensure that a formal document signed by both parties exists.

5. Refuse Partial Payment- In certain areas, once official notice is issued to a homeowner to pay the unpaid rent they already owe, the landlord is free to continue with the eviction process. However, it is worth to note that the recognition, at any point during the notice period, of partial payment in place of full payment of the rent, can result in expensive delays and difficulties in the eviction process. For example, if an occupant pays a partial payment within the notification period, the payment or holiday notice is invalid. They need not to vacate if they refuse to pay the remainder, and another warning is served. In certain areas, if after the notice period is up, a landlord accepts a partial payment, and if the occupant fails to pay a second time, the landlord must restart the eviction process again, giving notice first and then applying for eviction.

6. Prompt Action - As soon as the bill is past due, the landlords must comply with some form of action. If it's merely charging a late penalty charge or issuing a note, landlords must take the rent seriously. Delays can often be very expensive, as the process of eviction sometimes does not begin before a notice is filed, which can take five days to several months.