With tenant defaults on the rise, it is natural for landlords and property managers to resort to service of a three day “Notice to Pay Rent or Quit.” In fact, landlords and managers should think twice before serving a three-day Notice to Pay Rent or Quit.

While landlords and property managers often use the service of a three-day Notice to Pay Rent or Quit as a collection device to prompt a delinquent tenant to pay its past due rent, such a notice should not be served without first considering the legal consequences associated with taking such action and whether those consequences are desired. Legal counsel should be sought to determine the best tactical approach to achieve the landlord's primary goals. As explained below, if regaining possession of the leased premises is the landlord's primary objective, then the prompt service of a three-day notice is most likely advisable. If, however, the tenant is solvent, and collection of the rent is the primary objective, then a three-day notice may not be the preferred approach.

Please see full alert for more information.