For new landlord: How to train and stop tenant from missing

I suggest that you write a formal policy like this:

Rent policy:

Late fee deadline: Midnight 5th of each month

Delinquency deadline: Midnight 10th of each month

Consequence of missing late fee deadline:

1) Report to all credit agencies.

2) Charge a 5% late fee.  Late fee will be added to the rent and consider part of rent due.

Consequence of missing delinquency deadline:

1) Report to all credit agencies.

2) file a non-payment suit in District court on next business day. For example, if the 10th deadline is missed, my attorney will file suit on 16th morning.  This suit can lead to eviction and termination of lease.

3) Tenant is obligated to pay all court awarded fees, attorney fees and damages, as permitted by State of XXX law and lease section YY clause ZZ.

3) Landlord's attorney will proceed with fullest extent of law to recover owed rent, late fees, court fees, attorney fees.  These actions include garnishments from wages, bank, tax bureau and all possible source of tenant's income approved by court.

If you send the above policy to them, 9 out of 10 tenant will start to behave icely.  I just send out this policy to one of my tenants after they missed the first time.  Now this month, they paid it on time.  So it's very effective.  I call it "Scare tactic".

1) If their check is returned from your bank.

2) If deadline is missed, charge late fee and check bounce penalty.  But state this to tenant:

"I will charge you these fees for now.  But I can refund these fees if you can provide concrete proof from your banks that these funds were indeed available on XX date YY year when the check was processed, and or provide concrete proof that it was landlord's bank's mistake (like they often say).  Before these evidences are given, your new rent for this month is increased to original rent + late fee + penalty.  No partial payment is accepted.  It is tenant's responsibility to ensure full availability of fundings and delivery of payment.

3) If deadline is not yet missed, warn them that a bounced check fee is now added to this month's rent.  for example, original rent is 1000, now new rent is 1035 (with a bounced check fee added).  If **full** payment is not received by 10th day of the month, a suit will be filed in district court for delinquency.  Same as 2), if proofs can be provided later, such lawsuit can be dismissed, and fees can be refunded.

In my experience, I haven't met a tenant who can provide a proof that it's my bank's mistake.  A bounced check has 99% chance that their money is not in their account.

So, go ahead and charge fees.  Leave the burden of proof to themselves.