Problem tenant who’s behind rent for 3 months now.

[Cecilia Cave]

Hi there, newbie investor here based in Louisiana. We have a tenant who’s behind rent for three months now. She said she applied for Rental assistance program last October but until now they are still reviewing her application. She said her employer cut some of her working hours that’s why she doesn’t have funds to pay for rent of $1,300 a month. I told her we will start legal process by first week of January next year if we don’t received the rent payment this month . What should we do? Thank you in advance!

[Nathan Gesner]

The Emergency Rental Assistance Program (ERAP) requires the Landlord to complete a portion of the application and enables you to track progress. If you have not done anything with ERAP, then your tenant is lying or did something wrong. When my tenant fills out an application, I receive a notice within minutes. The Landlord has to confirm some of the Tenant information (e.g. rent rate) and provide a bank account so ERAP can send payment. I receive updates throughout the process, or I can log onto the website and check progress.

You shouldn't let a tenant get this far behind, but that's water under the bridge. Send the Tenant written notice that they have until January 7th to provide evidence of all applications for assistance. If they refuse or fail, start the eviction. Even if someone has lost their job, they should be communicating with you about what they're doing to find work and/or assistance. They should also try to make regular payments to avoid getting too far behind. Even $50 - $100 a week would demonstrate good faith.

Time to put your foot down and stick to it. Keep all communication short, in writing, and professional. Don't let them talk to you and make more excuses. Get clear proof or cut your losses.