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Past due balance

When the tenant has a past due balance, can we use rent payment to pay off balance of last months past due balance? Tenant expects me to continue to carry balance from month to month. I started using current months rent to pay balance, then they still owe rent for current month.  Is this unfair. or even allowed?  Thank You, Sue
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Hi Sue.....I would just keep track how much tenant paid you each month. If you start applying part of this months rent to the previous month , you will have a problem come next Jan when doing taxes. In other words, part of Jan 2011 income would be reported as received in Dec. 2010, which is incorrect. As for the amt owed you, send tenant a Notice to pay the amount due or Quit. I would include any late fees, service fees if you have someone serve the Notice and Admin fees for your time, provided you have it in your lease agreement. Keep us updated.
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