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  • Partial Payments

    What are the pros & cons about taking a partial payment. What does everyone think? We do not (but might waive a late fee)
    Last edited by Amy_ISS; 21st July 2017, 11:01 AM.
    Woodee

  • #2
    I never ever take them. If your lease does not say you will then I recommend against it. Deviating from lease is not good. Lots here do take partial payments. By the way, what is "Patctial"?
    "Never let the inmates run the asylum!"

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    • #3
      Wow Change for me Pac if you can!!
      Woodee

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      • #4
        Partcial
        Woodee

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        • #5
          Originally posted by Dave Scott View Post
          Partcial
          Even Partcial is wrong! Partial is correct. LOL!

          T answer the rest of your post I would say that accepting "partial" will deviate from a lease and then you have caved in to the tenant and opened a door to allow them to take a mile when given an inch. Others here will say some money is better than all the money. Bad habits that caused the partial payments to begin with will now be the norm for the tenant and the deviation from policies will continue and expand. I would not waive a late fee either.

          By the way, I cannot change the spelling. A moderator dd it.
          "Never let the inmates run the asylum!"

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          • #6
            We will allow a partial payment in some instances, but we do inform them at time of payment that it does not change their past due status. In other words, if they are past due $100 and want to pay $50, fine, but they are still $50 past due, and any past due balance on an account incurs a late fee on the 7th. If they are eligible for auction, then partial payments are ok, but if the balance in full isn't paid off by the auction end, too bad, they lose the unit.

            I'd say about 75% of the time when we mention that, most people will either pay the full amount, or won't pay anything at that time and instead pay the full balance off later.

            I'd rather get some of the money back, then auction the unit and make more money.

            FYI we have charged a late fee for a tenant that refused to pay the total amount due for his rent (he had sent a check that was short the amount owed 2 months in a row and after multiple times contacting him, leaving voicemails, and writing letters, we charged him a $25 late fee over a $10 past due balance). He is still here a few years since that happened lol.

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            • #7
              Last facility said no more partial payments-unless they were in auction status and were willing to move out EVERYTHING the same day. This facility is okay with it but I'm trying to wean the tenants off of that option because frankly, it's a headache and prolongs the pain for both of us.
              Why are I-phone chargers not called 'apple juice'???

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              • #8
                My written policy: No partial payments when more than 30 days late (i.e. when law allows a sale). If this ever becomes an issue, I tell them this is for their benefit: if they give us $100 and still go to auction, they not only lost their property, they lost their $100. Yeah, there are a few occupants who can't get this into their heads, they somehow seem to think that if they give us twenty bucks whenever the urge strikes them, it somehow keeps them treading water.

                My soft exception is if they pay us enough so they owe no more than one month's rent. Essentially this means they have paid enough to bring their account to less than one month past due and the law requires cancelling or postponing a sale. My concern is that they offered us enough payment to avoid a sale and we refuse it and proceed, they then claim that the sale is therefore wrongful.

                If they really press the issue and want to give us a partial payment, I have them sign an exception with an acknowledgment that a partial payment does not necessarily stop a sale.

                A settlement is a different issue, and I try to avoid that at all costs.

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                • #9
                  Any one know the maximum allowable late charge .for Tennent in my units in clarksville. My wife and i just purchased it still learning in and outs . Some how one of our Tennent s thinks he exempt from late fees on his 10 yr old contract. Can i change his late charges terms any in put will be appreciated

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                  • #10
                    Clarksville tn

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                    • #11
                      andrew, have that tenant come in to do a new contract. McGeeBee, if you didn't take partial payments and play with jumping through hoops, you would not have to worry about refusing that partial payment that brings a tenant to one month late. I don't have a right to refuse a full payment but I can turn down a partial payment. Don't do it to begin with and you don't have to worry about that entitled tenant. They initialed and signed the lease agreeing to your facility terms. They should put on their big boy pants and live up to those terms and if they pay up and they are a pain in the ***, then give them a 30 day vacate notice right then. Life is too short to deal with that.
                      "Never let the inmates run the asylum!"

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                      • #12
                        To me there are no pros of taking partial payments unless you have an arrangement for the tenant to vacate their unit once they make the payment. Other than that I have found that people who make partial usually don't get caught up. Then they pull the okey doke the next month when the amount owed is higher. They think you've ripped them off and added additional fees and rent. But you're in a new month and you told them in the late notice that "rent and fees will continue to accrue as long as there is a past due balance."

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                        • #13
                          Originally posted by Bella_Lindemann View Post
                          To me there are no pros of taking partial payments unless you have an arrangement for the tenant to vacate their unit once they make the payment. Other than that I have found that people who make partial usually don't get caught up. Then they pull the okey doke the next month when the amount owed is higher. They think you've ripped them off and added additional fees and rent. But you're in a new month and you told them in the late notice that "rent and fees will continue to accrue as long as there is a past due balance."
                          So true Bella, could not have said it better. KrisinNC said it just prolongs the pain.
                          "Never let the inmates run the asylum!"

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                          • #14
                            I think you have to "know" the individual and maybe the circumstances. If it's a long-time client, then there should be some flexibility. Things happen. Life happens. But for people that are not long-term and you don't really know them that well; it's opening a door that might be possibly hard to shut. In the end, an auction ensues. It really all comes down to the individual.
                            Chuck G.
                            Content Developer & Social Media Manager
                            Online Storage Auction Services
                            iBid4Storage

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                            • #15
                              We never take partial payments. It is enabling the customer to pay late. I can't pay a partial car payment or a partial mortgage payment. Apartments do not take partial payments either as it impedes the eviction process. We are no different.. If someone can't afford to pay, they need to either downsize or move out. I know I sound harsh, but 17 years in this industry has taught me a few things. I have literally heard thousands of excuses.

                              Also you have to treat EVERY tenant the same. If you take a partial for one, then do for all. At least that is what the "Storage Lawyers" say. You can't discriminate. I have found that if you do allow a partial one time, the customer gets used to it and it becomes a habit. JMO....
                              Stephanie Tharpe
                              Senior VP of Operations
                              A+ Storage of Tennessee, LLC
                              Nashville, TN
                              http://www.aplustorage.com
                              615.288.2162

                              TNSSA Board of Directors
                              www.tnssa.net

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