Announcement

Collapse
No announcement yet.

Overlocking Delinquent Tenants

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Overlocking Delinquent Tenants

    I might be over thinking this or probably even a little crazy but wanted to get some other thoughts about overlocking delinquent tenants. It seems like on the 5th we put a lot of red locks on units and the majority of them pay and we have to remove them. We do automatically lock them out of the gate so it is hard for them to get onsite without following someone on. It just seems like a lot of effort and I am not sure if it is really worth the effort. Does anyone just not worry about overlocking units until you get ready to auction them off? I guess there is a risk that someone could just move out but not sure that is a problem since auctions don't normally recover the money owed and at least the unit could be rented. Yes I know there are things to do get people to pay on time so this isn't a issue - really just wondering about if it is worth the effort. What percent of your units do you have to overlock each month?

  • #2
    Depends on what your lease says (and the statutes). My tenants are locked out at the gate at 5 days late and overlocked at 10 days late. I might have 2 or 3 overlocked one month, then 8-10 the next. Most of them pay before lien notices go out but I do have one or two that wait til they get a lien notice then pay on the final day due.
    Too many freaks, not enough circuses.

    Comment


    • #3
      Originally posted by DairyGirl View Post
      Depends on what your lease says (and the statutes). My tenants are locked out at the gate at 5 days late and overlocked at 10 days late. I might have 2 or 3 overlocked one month, then 8-10 the next. Most of them pay before lien notices go out but I do have one or two that wait til they get a lien notice then pay on the final day due.
      Thanks DairyGirl. I guess because you don't have that many that go delinquent each month the time of doing the locks doesn't take a lot of time. Still I wonder if people would still pay without overlocking them and just locking them out of the gate.

      Comment


      • #4
        Totally depends on the tenant. If mine get locked out, they park and come in and pay. Of course the convo always starts with "my code isn't working", to which I say "its because you are late with your rent". Haha
        Too many freaks, not enough circuses.

        Comment


        • #5
          Just how many over-locks are you having to do that you think it is just not worth your effort?

          When my tenants are 1 day late, they are denied access.
          Late fee hits the account at 10 days late.

          Your delinquent tenants just may show up, after hours with a truck and wait to piggy back in.
          Why then would you leave yourself open to just let them?

          I imagine your lease has rules and procedures?

          Why do you wish to not follow them?

          I am anniversary at one location.
          I currently have 3 tenants who are over-locked and one of them is in lien and that lock has been cut!

          My other thought is this, BEFORE over-lock day, are you placing those courtesy calls to all delinquent tenants reminding them that they are X amount of days late and that the late fee is to hit the account in X amount of days?

          Don't put off until tomorrow, what you can do today.

          Comment


          • #6
            The lease says over lock the unit. Follow the lease. It is part of the job. Do it. What does the owner say about your concerns? I know what I would say. When you buy your own facility you can leave the locks off.
            Last edited by MamaDuke; 7 April 2021, 12:42 PM. Reason: Site Rule #7

            Comment


            • #7
              Customers of ours don't have a working gate code on day 2. We overlock on day 16, About 500 units, usually about 20 or so red locks. Do it

              Comment


              • #8
                We overlock on the 8th, per our lease. I usually print out my list in the morning and wait until the afternoon to OL due to the email I send with the new past due balance including the late fee, several people end up paying after they get the email. I usually end up with 10-15 locks I have to put on out of 557 units. (There are usually a couple of stragglers who are still overlocked from the previous month) I would definitely do them, if I were you. As soon as word gets out that you don't overlock them, they will take advantage of that and will be tailgating in to move their stuff out because they know they won't have to pay-to-play.

                Comment


                • #9
                  I say to myself..... Locks on.... Locks off... Just the rules.... I call everyone at day 3, they get locked out at gate on day 5, overlock goes on day 7. Just part of the job. I tell them if they get upset. its the rules,

                  Comment


                  • #10
                    I had a large property in a not-great part of town with a high poverty rate. We billed on the 1st. On the 11th, we often had 150-190 overlocks to do. Of course, the vast majority ended up paying and we removed them again. But it's all part of the job. And I'd never consider leaving them off.
                    MamaDuke

                    Comment


                    • #11
                      If it is a recent customer, 1 to 3 months, I overlock on the 5th. If it is a long time customer, I'll wait until the 10-15th. I've only got one red lock on now, only 4 past due from the 1st. If they don't have a valid credit or debit card, an email address, and a cell phone I won't rent to them.

                      Comment


                      • #12
                        My lease gives them till the 8th, on the morning of the 9th, late units all get red locks no exceptions. I do a pass through the property daily (remotely managed property). If someone has a problem with waiting for me to remove it, I can share the combo to the red Davinci lock and reset the combo for the next tenant.

                        Gate locks out automatically on the 8th and i get a LOT of people that head straight to the kiosk to pay after they get the gate message. But yes those locks are needed because it would be easy to just tailgate in.

                        I drive through the property twice a day anyway, so I really have no issue spending a few extra minutes with the locks. Those locks and the late fees are your tools to keep receivables under control.

                        Comment


                        • #13
                          Follow the lease. It's just part of our job whether you're an employee or owner. Our lease states that on the 7th it's late. Yesterday we made an attempt to call the few that were late. Before we left the ones that didn't pay were locked out with DaVinci locks on their units.

                          Comment


                          • #14
                            I've learned that if there is no consequence, what is the incentive? If you don't over lock, why cut lock or auction? Its to push those slow payers and procrastinators..even tho we may over lock on different days, we've all trained our customers to what the consequences are.

                            Comment


                            • #15
                              I always overlock on the 5th if they have not paid. It is the same people normally, but I do not want to take the chance that they will come and clean out their unit and skip out on paying rent. The Tenants know that we do this every month and 95 % pay on time. And it is in our lease that we have 5 days to remove the lock once they have paid, just in case I am not here when they pay.
                              "A Dog is the only thing on earth that loves you more than you love yourself".

                              Comment

                              Latest Topics

                              Collapse

                              Working...
                              X