1st Time Landlord Help?
Hi, This is my first time as a lanlord and it was not by choice. I will be very thankful for any advice that is given.
I had a 2 bedroom and DH and I got pg so we HAD to have a 3rd bedroom. Real Estate moves slow here so we just rented it out Last June with an option to buy but the buy had to take place within the 12 month lease.
Ok Renters were great until now. This is the first time they have not paid rent on time and I need that $$$ to make that mortgage. (I know I know bad idea to not have enough of own income to make mortgage by self....but this was unintended and the house did not sell)
How do you Gals and Guys handle renters who decide not to answer calls and not to call you about the rent being late. I mean Jeesh I would have expected some common courtesy. Call if you aren't going to pay as usual. Answer the phone etc etc..
Anyways DH has gone there personaly twice and both time we were given a date when things be straightened out but both times the dates passed and he had to go again. This time I want to do more than just go and try to collect. Do I send a letter? Do I start to evict?
What do you guys/gals do?
Always remember to start eviction proceedings if you don't get your rent in 7 days from the day it is due. Follow this rule and you will save yourself considerable headache especially if you are dealing with low quality tenants.
When my long time tenants get behind on the first month I visit them. I ask them when can they come current with the rent. If they tell me they need several payments then I can work with that. I write down the date(s) and the amounts that they say they will pay me. I make a copy for them and a copy for me. I tell them that if they miss one of these dates by even one dollar I will start eviction. I only work with them on one month. If they can not make the full rent payment the next month I start eviction.
When a short term tenant (did not understand if Last june was june 2003 or june 2004) falls behind I give a three day notice on the 10th.
Brenda
If you cannot make that mortgage payment yourself then you don't have the luxury of hoping the tenants will come around. They've shown you that they cannot be trusted to do the right thing (call you; work out a payment schedule; borrow money from someone else; honor their word/agreements). It is NOT OK for other people to make their problems your problem. You're not their mom or their bank. What tenants are doing, in effect, when they don't pay rent on time is borrowing money from you without your permission. They need to borrow money from someone else.
I have a rent discount in my leases. It calls for the tenant to pay rent on the 1st of the month. If I RECEIVE the rent on the 2nd or later, they don't get the 'discount'. For instance- the lease says rent is $600./mo. but if it's received by me on the 1st, it's $500. I advertise the place as $500./mo. but when it comes time to sign the lease, that's what the lease says. If a tenant questions this, I say "You intend to pay rent when it's due right? So you won't ever have to worry about paying $600." You can believe that my tenants make sure I have rent on the 1st.
If I don't have rent by the 2nd, I call to ask when I can expect it. If I get an answer that's anything other than "I'm coming to pay you right now" or " I mailed it, you should have it by tomorrow", I post a standard "Three Day Notice" on the door with a cover letter that says "I'm sorry about this notice thing, but it's just business and I'm required to do this by law." If I don't have rent by the end of the three days I will call the tenant and tell them that if they are unable to pay rent before the next morning I'll have no choice but to file for eviction in the morning and then I'll need an additional $200. to cover the court filing fees on top of the rent owed- plus the extra $100. because the rent discount has expired. If they try to pay rent after you've filed for eviction, don't accept it without the extra court filing fees. You can waive the extra $100. due if you want. If they've paid me by now and I've waived the rent discount requirement, I will send them a letter explaining that I've waived the rent discount this month, but in the future I will not be able to do this. I stick to that too.
If I end up having to file for eviction, I then send them a letter explaining that if they do any intentional damage to the property I will have no choice but to file criminal charges against them for vandalism and that any damages done to the property will result in a lawsuit against them and I will use the resulting judgment to garnish their wages or have their vehicle taken by the sheriff to be sold to pay the judgment. I warn them that it's in their best interest to just move out and move on.
I know this sounds harsh but it's worked for me. I've gotten my eviction properties back undamaged.
If you give tenants an inch they inevitably take a mile. No good deed goes unpunished is true. I've made the mistake of allowing tenants to lure me into their personal problems and it's been a mistake every time.
I had one tenant that occasionally paid rent a week late; but she would call me in advance to ask permission and then she would pay as agreed. If people are honest and forthright about problems and the request is minor (like a week late) I will work with them. But when they don't call; don't ask; and don't pay, I will not work with them and they get the strongly worded letters.
You must get the three day notice posted by the second or third day of the month though so you don't waste time listening to their excuses. It takes at least 20 days from the date you file for eviction to get the property back. If tenants are offended by the three day notice then all they have to do is pay rent on the first in the future and they'll never see a three day notice.
Your relationships with your tenants should be friendly but not personal. This is business. I won't have people sitting in my house for free even one day longer than necessary. I have my own family to support. I did not agree to help support their families if they fell on hard times.