When it comes to renting a property, understanding the intricacies of rent payments and due dates is crucial for both landlords and tenants. One common question that often arises is, “When is rent considered late?” In this conversation, we will thoroughly explore this vital subject and provide insights into the course of action when rent collection coincides with weekends or holidays. Here is some valuable information to guide you.
- Due Date on Weekend: The due date for rent is typically specified in the lease agreement between the landlord and the tenant. It is commonly due on the first or fifteenth of the month, but some lease agreements may specify a different date. If the specified due date falls on a weekend or a holiday, the tenant is usually expected to make the payment on the last business day before the weekend or holiday.
- Due on Specific Date: If the rent is not paid by the specified due date, it is generally considered late. Late fees may be applicable, as outlined in the lease agreement. Landlords may choose to offer a grace period for late rent payment, which is typically a few days after the due date during which the tenant can pay the rent without incurring late fees. However, this also depends on the terms specified in the lease agreement.
- Fails to Pay: If the tenant fails to pay the rent within the grace period, the landlord may initiate further actions as outlined by the lease agreement and local landlord-tenant laws, which may include issuing a formal notice or taking legal action for eviction.
In Ontario, landlords can proceed with delivering the form ‘N4’, which is a notice to end tenancy early due to non-payment of rent, when the rent is late. This notice is issued to the tenant to pay the amount owing within 14 days from the date the notice was delivered (if rent is paid monthly).If the rent remains unpaid beyond the due date, the process of initiating eviction, typically through professional tenant eviction management services, will be set in motion with the involvement of the Landlord and Tenant Board.
Both landlords and tenants must prioritize a comprehensive understanding and strict adherence to the stipulated terms and conditions in the lease agreement. This diligence is crucial for preventing any possible disputes or legal entanglements, especially for those who engage the services of a property management company. Furthermore, it is of utmost importance for landlords to conduct rigorous tenant screening before finalizing any agreements, as this proactive measure can help prevent such issues from arising in the first place.