Rent is due on the first. My Tenant pays late every month and claims that there is a 5-day grace period in PA and that it is OK to pay by the 5th if the rent is due the 1st.

Which by the way, the check is dated the 5th and takes 2- days to clear in the bank. So actually I am not receiving funds until the 7the or 8th of the month. My mortgage is due the first and with limited funds this is becoming a hardship for me.

I just purchased home 1-year ago and their year lease from previous owner has not been updated.

Questions:
Are late fees legal
Are grace periods legal
May I update the lease to a month to month lease with penalties regarding late payments
And last but not lease their security is $700.00 from previous owner and the rent is $850.00, may I collect the additional $150 for security or last months rent?

Thank you kindly. Jet

I've reviewed the PA Landlord/tenant laws found here:
Landlord Tenant Act of 1951 - Law Summary

I didn't find any mention of grace periods or late fees. This generally means the lease covers these issues. If your lease says rent is due on the 1st and does not mention a grace period, then you can charge late fees if you do not receive the rent on the 1st.

If the tenant claims that PA law requires a 5 day grace period ask him to cite the law. Otherwise you will go by what's in the lease.

You cannot change the lease without their permission. However, once it expires you can require that they sign a new lease or vacate. Generally 30-60 days prior to the expiration (I would do at lease 45 days) you present them with a new lease to sign and you make sure due dates and late fees are spelled out. Give them 15 days to sign the new lease or you assume they will be vacating at the end of the lease.

Most state have a standard 5 day grace period. Depending on PA your tenant may have that right. You can not consider the time the bank takes for the check to clear. You may be able to cash the tenants check at their bank. Double check the rental contact, you may have a clause that allows you to charge a late fee. As for the terms of the contract you can't change the contract until it expires.

Quote:

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Originally Posted by jeriksson

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and last but not lease their security is $700.00 from previous owner and the rent is $850.00, may I collect the additional $150 for security or last months rent?
...

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I believe you mean "last but not least". :)

It depends in part upon the terms of the lease, and also upon the history of the deposit account. Does the lease provide for $850 a month rent? Did the previous owner already take $150 from a $850 deposit, or only ask for a $700 deposit?

If the $150 was deducted from an agreed $850 deposit, you can probably ask for the difference.

The problem here is that you need to be able to pay the mortgage on a rental home, even if it is empty, ( which it can be sometimes) So pay a month ahead on the mortgage and then it is not such a time crunch.

Also it is not the renters problem when your mortgage is due, they only have to pay according to the written rental agreement you have with them.

They have paid you when you receive their check. If checks are an issue require money orders in the next lease

You can require an increase in the security when the lease is renewed, but not before.