Tenant Cannot Pay Rent - What Should I Do
My tenant just informed me that he has an unexpected financial problems and is not able to pay rent for this month. He offered to move out upon written request from me. He has been leaving at my property only for 2 months and has an 18 months lease. I would want him to move out but to be responsibe for the advertising expenses and vacancy while i am searching for a new tenant. What steps should I take? Where can i find info regarding this topic.
thanks in advance
Vicky[ Edited by toya on Date 02/19/2005 ]
- Start eviction process ASAP
- Let him out of the lease and find someone else. If you fight it you will only lose. Small claims is great, but keep in mind the 80-90% of judgements are never collected. Because the collections part fall back on you! Now, I deal with lower income properties, so keep that in mind. If you tenant has a good job (stable) you might be able to collect that way. However, I always look at time/energy.
- Either way iit is better to get the "dead beat" tenant out and get someone who will pay in.
Good luck
Thank you everyone for the answers!
it depends on how much "pain" you are willing to endure. if you take them to court you may win and they may file bankruptcy..........km
This tenant is actually asking to leave. I wish when my tenants run out of money they ask to break the lease - would let them go everytime. Instead, my experience is they dig in thier heels and try to get a few free weeks before they are actually forced to leave by the police.
there lies the problem when they run out of money they have no where to go.......km
A big problem, but sometimes the "cost of doing business".
Screening screening screening! It is the most important part - you get the right people in place your troubles are significantly reduced.
However, even the best screened folks hit hard times.
dont for get to collect what he is willing to pay towards the rent. Some times they can catch up. or there circumstances change.
Years ago i could not pay my rent one month. It took me 6 months of $100.00 per month extra to catch up. but i did it. Hard times are hard times, open discussion can go along way with your tenant. Not every one is trying to skip out on the rent!!!!!!
John
P. S. I have some rentals my self now and have seen good and the not so good. treat tenants with respect and most of the time tenants will do the same to you.
cpifer,
I am chasing my landlady around the dining room table tonight - LOL. thats why I hired a PM named "gwedo". He keeps my tenants in check while I keep busy doing other things.[ Edited by hoober on Date 02/27/2005 ]