New Landlord, Inherited Tenant, Bounced Check

[Steve W.]

Hi Everyone,

I finally took the plunge to buy an investment property after reading on this forum for about 2 years!  I've really been enjoying the process, but I'm running into my first "situation" that I'd appreciate any advice on:

  My inherited tenant is on a Month-to-Month lease that he signed with me.  I kept all of the original terms and gave him his current rate, which is significantly below market rent.  Unfortunately he quit his job and his most recent payment bounced due to "Not Sufficient Funds".  I believe I need to serve a pay or quit notice; however, ultimately I'd like to end his lease and get someone else in there as I've already had other issues with him (smoking in unit, etc).  Should I serve him a pay or quit notice or serve him 60 days notice that his lease is ending? Or both?

I appreciate any advice; I have a lot to learn! 

[Matt Ziegler]

Talk to him and find out more details. Treat him like you would want to be treated if the tables were turned.

Discuss how to resolve this to everyone’s satisfaction. Let him know your next steps... legal notices and procedures. If he packs up and leaves, you both win... less hassle and you can clean/ rehab the place and place your new resident (that you have screened) at a higher rent rate. You earn more, and learn more!

Best of luck, cheers