Unique tenant problem.. What are your thought on this??

Question

Okay........

Have a tenant that I filed eviction on.The county was backed up so took awhile on the writ.

Marshall is serving the eviction the 21st of November after 3 months from filing court date.

The woman became disabled and filed for SSI disability.I talked to her case worker and the usual time for review is 2 years to get approved or denied.She told them she was getting evicted and sent evidence.They escalated and marked file for review.

When I discussed with case worker even though file is flagged it still has to go through the judge for review which takes 2 to 4 weeks and then if approved SSI will send me the landlord the back rent owed which is around 4,000 with late fees and penalties.

So the answer from SSI will not be in time before the eviction.I already told the tenant today I need at least half 2,000 or I am not stopping the marshall from evicting on the 21st.

The lady says she would call me back and says she might could get the money but the issue is she can't pay me because when she goes for review for SSI they will ask where she got the money to pay rent.Then she could lose benefits or amount of lifetime benefits going forward and will not risk the lifetime benefit.

She said if I just waited I am on the forms to get paid when she gets approved.My thing is If I cancel the marshall then I have to refile eviction and with the Holidays it will be January or February before I get them out.

I told the lady I was not stopping it for a 600 payment and that she is not guaranteed SSI approval and I can't stop it on a PROMISE.

We will see what she does.I told her to pay by Sunday.If I get 2 grand now it will be one less unit I have to rehab and then if SSI doesn't come through with the rest in 4 weeks I can evict again.

She is judgement proof even though I have one on her I can't collect from pensions etc. with garnishment or bank levy.

She was a tenant I inherited from a previous landlord 4 months ago when I bought the place and she used to pay on time before getting hurt with her back.

Any thoughts or dealings with SSI Disability will be helpful.

Chris Clothier · Answer

joel -

I can tell you from having managed hundreds of units over the years that these types of situations almost never work out in your favor.  I think it is a huge gamble to wait.  The fact of the matter remains that the tenant has gotten behind - owes you more than 1/3 of the rent for an entire year and you had to move for an eviction.  If the rest of the story involves lack of communication and her inability to convince you of her situation so you don't spend the money evicting, then my advice would be to move forward with eviction.  If SSI will pay back rent then they should pay you as an owner regardless of whether she still lives there or not. Unlikely that will happen either.

I have never seen cases similar to this work out for the landlord of the management company trying to collect.

Account Closed · Answer

chris is right... This usually doesn't work in favor of the landlord... that's why you have to read the tenant and know which ones you can work with and which ones you just cut ties with

Account Closed · Answer

I'd let the right tenant stay... You're taking a gamble... If you know in the next month or so and she doesn't pay you're only out a few more hundred bucks of missed rent... Owell... On the other hand, if she stays and gets SSI, you get your 4k back plus rents going forward... Seems worth the gamble to me... Especially if she doesn't cause problems, keeps her place clean, always paid on time in the past, etc.  It's about reading people and knowing which tenants you can stick your neck out for..surprised SSI takes so long for approval though... Can you call and talk to them?? It seems half my tenants get SSI...

Mark H. · Answer

I had a girlfriend years ago who applied for SSI disability & actually got it several years after applying.

The arrears check was enough cash for a new car.  The odds of anyone paying thousands in uncollectable back rent, versus buying a huge TV, a nice car, going on a shopping spree, etc do NOT run in your favor.

I haven't been a landlord very long, but my short experience so far has shown me how the other side lives...  My tenants have the latest Iphones, the $200/month cable tv plan, a 73" tv, new car in the garage, etc.  All those things the wife and I skipped to buy our first rental home.

Joel Owens · Answer

Thanks everyone you all make great points.

I believe she is milking the situation.

A point I would need to clarify with social security is if in fact they would mail the check to the landlord since we are listed for back rent on the papers she submitted or the check would come to her??

I talked to the case worker again and they said at this point because the eviction is imminent it would not matter if the tenant had someone pay the 2,500 on her behalf and would not affect her case.

So I will call her bluff and she will pay or I will throw her out.I will update what happens.

Bob Hines · Answer

While I am no expert, my understanding of the SSI program is that once you are approved, you receive payment back to the date of the original application.  Maybe the eviction part qualifies for a special program that I don't know about and will change things, but most likely she is going to be getting a check for a full year of payments at once.  That's going to be a whole lot of money for her, possibly the largest check she has ever received.  If this were you, would you flush away $4k and pay your landlord to stay or would you pay first month, last month, and deposit on a new place and party with the rest?  What would she do?

Ed O. · Answer

If you have had to take this tenant through the eviction process completely, it shows you that she's trying to drag things out and will only do it again, the next time her car breaks down, etc. It's no fun having to throw someone out, but based on what you have said, along with the added delays of giving her more time, I would proceed with the eviction.

I had a friend with one section 8 unit. His tenant got kicked out of the program after being busted with weed. She had 100% of her rent paid by the government. The next month, she paid the landlord cash for her rent. It's funny how people sometimes have the ability to pay when their feet are to the fire. I can't really see her paying you 2k messing up her getting benefits. If she's that worried, tell her to have a relative "lend it" to her. Her approach really makes me think she's milking the situation. She'll probably be telling you the same story 30-120 days from now... just a few more months.. be patient...etc...

Don Chambers · Answer

How much is the rent?  I think I would let her stay if she gave me the $2k.  Then you are gambling on getting the other $2k.  But getting $2k now and then evicting will probably put you a little bit head of not getting anything more.

If she pays you the $2,000 where will she get it?  
I assume if she is borrowing it then the SSI should not hold it against her.  Also, if someone is giving it to her that should be OK to.  I think SSI wants to make sure she does not have a lot of savings sitting around somewhere (or some hidden income).  You should ask the case worker about borrowed funds.

If she does not pay the $2k I would evict her.  She is several months behind and she can get the money but it might affect future benefits.  First, that is her problem and you are making it yours.  And second, it might not affect her benefits.

It is a close call, whihc makes it a tough decision.  But if you evict you can move on and put it behind you.

Sharad M. · Answer

Joel,

The only way I see you come out ahead is if her case gets approved. May be it's late, but what's the benefit of accepting $2,000 partial payment from the tenant? Wouldn't you end up losing more due to 3 months of loss rent (Dec-Feb) and legal fee to redo the eviction? What numbers am I missing here?

Joel Owens · Answer

The way it works Sharad as the case worker explained to me is this:

From the time of application SSI is running behind about 2 years.She applied a year ago but since she is facing eviction they do an emergency advancement and flag the file.

This is where it is at now.Then when they pull the file it is sent to the judge for a review.The judge looks at hundreds of  pages for the one file.The decision takes 2 to 4 weeks.Then after that if approved a second division of SSI handles payment.

The case worker said in Georgia alone SSI has over 100,000 cases to process!

My whole thing is I am rehabbing other units right now.This lady has lived there for awhile so I know carpet and other items will need to be replaced.

I will have to see if she blinks first and pays the money.

Unique tenant problem.. What are your thought on this??

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