Should Landlords Provide a Grace Period for Rent Payment?

By Robert Griswold

Question: Recently, my landlord sent a notice to all the tenants in the building that the rent is due on the 1st of each month without a grace period. The rent has always been due on the 1st, but he used to give the tenants five days to pay. After several years he changed it to three days to pay. I thought that was reasonable, especially if the 1st falls on a weekend and tenants may be gone for the weekend.

Is common for a landlord not to provide a grace period? I understand that the rental market is excellent and that the landlord can get away with this. I just want to know what is common practice - maybe it is common practice and he was just nice to his tenants in the past.

Property manager Griswold replies:

It is fairly common for rental property owners to offer a grace period. Typically, a three-day or five-day grace period is offered. As you correctly note, it is perfectly legal for a rental property owner to require the rent payment in full on or before the first of the month and not offer any sort of grace period.

Even with a grace period, the rental property owner legally has the right to serve legal notices regarding non-payment of rent. I have seen many examples of rental property owners tightening their policies and rules, including a reduction or elimination of grace periods.

Personally, I think that a three-day grace period is a good business practice and one that does not impose an unreasonable burden upon the rental property owner. It also can avoid claims of discrimination as a rental property owner that does not apply his/her late charge policy consistently could be accused of treating tenants differently or discriminating. With such a harsh rent collection policy, a rental property owner should enforce the policy with all renters equally, which would clearly create tension with some of the best renters who are inevitably going to be late with their rent payment occasionally.

Your landlord is being too aggressive in my opinion and should seriously consider retaining his current policy, as the rental market may not always be so strong. I believe that the rent is a very important tenant obligation, but rental property owners need to be fair and reasonable. Your landlord most likely has a grace period for the payment of his bills, including the mortgage. In my book, "Property Management for Dummies," I recommend a three-day grace period that expires on the 3rd of the month, even if it falls on a weekend or holiday. However, some states allow tenants an extra day if the grace period falls on a weekend or holiday. I believe that the extra three days is reasonable and avoids problems with good tenants who just miss paying on time.

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