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In accordance with strict California Department of Real Estate guidelines, these monies are applied to each property account in a timely manner. Late payment is quickly identified and dealt with before a chronic pattern is established. This type of tracking and follow-up almost eliminates rental loss.
Q: What happens if my resident pays late?
A: Generally, our policy is that rent is due on the 1st. We give all residents a three-day grace period to pay. After the 3rd day, rent is considered late and a late charge is accessed to the resident's account. Payment of the late charge is due immediately and is paid to FBS to offset the cost of processing a delinquent rent.
The extra effort needed for us to charge and administer late charges is worth it as an effective tool to keep residents current with their rent.
Q: Can a "bad" resident be evicted?
A: Once we have exhausted all efforts to remove a delinquent or nuisance resident, an unlawful detainer action (eviction) will be filed with the municipal court clerk.
The resident is given a 3-day notice to pay or quit, if the resident doesn't pay, then the action will be filed on the court calendar. If any amount of money is accepted from the resident during that 3 day period, the process must start over again.
The clerk will then notify the resident through the Marshall's office that an Unlawful Detainer action has been filed against him/her and he/she is given the following options: Pay the rent or file an answer to the claim requesting a day in court. The residents answer can be no answer, which is often used to buy time.
Our attorney will prepare the case for the landlord. All attorney fees, court costs and filing fees are additional costs to the owner. If the tenant is able to convince the judge that the contract has been breached, the judge will order a cure of breach and possibly re-calendar the action.
If the tenant is not able to convince the judge the court will order "a right to possession" and calendar a Marshall's lockout date, which is generally 5 to 7 days after the court date. On that date, an FBS representative will be required to meet the Marshall at your property to physically take possession and lock the tenant out.
Generally the process takes 7-8 weeks and we can handle all the details without your involvement. Often the tenant will abandon your property during the process.
Though we avoid eviction if we can; our business experience dictates when and how we proceed. We maintain a clear business focus to minimize your financial loss.
Knowing exactly what to do and how to get it done in a business-like and timely fashion is often the difference between financial inconvenience and a disaster for our owner clients.
Q: What is the chance of collecting past rent money after an eviction?
A: The most important action is to get the bad tenant out so we can replace him/her with a qualified resident.
We will place the judgement with a collection agency if we are not successful within 30-60 days to collect past rent. Their success rate is not very high but we place the judgement on their record with hopes of future collection.
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