How to Handle Partial Rent Payments

As a landlord, there may be times when a tenant tries to give you a partial rent payment instead of the full amount. While the choice to accept or refuse a partial payment is entirely up to you, it’s important to understand partial rent payments and how they affect your rental business.

What Are Partial Rent Payments?

Partial rent payments are when your tenant pays you only a portion of the monthly rent price. For example, if your monthly rent price is $2,000 and your tenant only pays you $1,500, then he or she gave you a partial payment.

Are Partial Rent Payments Considered Late Payments? 

Yes, partial payments should be considered late rent because you have not received the full amount on time.

Should You Accept Partial Rent Payments?

It’s okay to accept partial payments as long as you handle them correctly. You can sign an agreement with your tenant called an “Agreement for Delayed or Partial Rent Payments.” That way, your tenant understands that you expect the remainder of the payment by a certain date.

If you have already filed for an eviction, then you should not accept partial payments. Some states will make you restart the eviction process if you accept a partial payment after filing at court.

There are no laws stating how to handle partial payments (unless you’re in the process of an eviction), so it’s up to you to decide whether you’ll accept partial payments or not.

Are There Drawbacks to Accepting a Partial Rent Payment? 

By accepting a portion of the rent, you may make the tenant less concerned about paying the rest. Plus, by accepting a partial payment, you may be communicating to your tenant that the behavior of not paying the full amount is okay.

To combat this drawback, you should make it clear when you accept the partial payment that you require the rest of the money to be paid by a certain date. This can be done by creating a lease addendum, which can also help enforce the agreed-upon payment plan. Communicating when you expect the rest of the money is key so your tenant understands they are responsible for the remainder of the rent.

Keep in mind that you should not accept a partial payment if you have already filed for an eviction. If you do, you may have to restart the eviction process.

How to Handle a Partial Rent Payment

There can be a number of reasons for a partial payment, so your first move should be to establish why your tenant can’t pay the full amount. You may be more likely to accept a partial payment from a tenant who just had a major surgery than from one who simply lost track of time and didn’t budget correctly. 

If you decide to accept a partial payment:

1. Set a due date: Let the tenant know when you expect to have the remaining amount paid.
2. Include late fees: Collecting your late fee will remind your tenant that you’re serious about rent being paid on time and in full.  
3. Document the partial payment: Add notes to the partial payment record to help you remember to collect the remaining balance. 
4. Sign an agreement: In addition to your personal notes, you can have the tenant sign an “Agreement for Delayed or Partial Rent Payments.” This document can protect you if legal action becomes necessary.

If you decide to not accept a partial payment:

1. Inform your tenant of the refusal: It’s important to let your tenant know that you won’t accept a partial payment, especially if they try to pay in cash or by check. 
2. Set a due date: Once again, you’ll want to inform your tenant of when you expect the full payment, as well as any applicable late fees. 
3. Review additional consequences: Once you’ve informed your tenant of when you expect to have rent fully paid, it may be helpful to remind them of the repercussions beyond late fees. Unpaid rent is a violation of the lease agreement and may result in their eviction.

Keep in mind if the tenant doesn’t pay you the full amount by an agreed-upon date, then you should approach this similarly to handling late rent payments.

Collect Rental Fees With Avail

From time to time, you may receive a partial payment from a tenant. It’s important to have a standard procedure in place when this happens, such as having a signed agreement in place to enforce a payment plan with payment dates. 

By collecting rent with Avail, landlords can easily enforce their choice to accept or deny partial rent payments. You can track details like the date and amount of the payment so you know how much remains to be collected. Or, if you choose not to accept partial payments, you can block them from being received. This provides more control than a platform like Venmo or Zelle, making it easier to carry out an eviction if necessary.

To keep rent payments simple, transparent, and easy to track, we recommend collecting your rent online.

Next: Learn about raising your rent and rent control.