Tenant Not Paying Rent; What To Do?

Question

Greetings,

Looking for some feedback and opinions on tenant not paying rent.

Scenario: OOS duplex. One tenant has not paid rent for 3 months but has, way past due date, received rent $ from Iowa Finance (I believe this is low income assistance) for the first 2 months. I believe the property manager had to initiate the application process for Iowa Finance. This $ has not included the pet fee, which the tenant is now delinquent on.

I believe in working with tenants and this approach has worked out for me in the past with other tenants. Eviction seems to be the next possibility, but I want to give the tenant the chance to avoid this.

Anyone dealt with similar scenarios?

Dan Travieso · Answer

Got to enforce the terms of the lease. Remember, you run a business, not a shelter. A tenant who is 3 months behind will never catch up. Time to go to the courthouse and file papers. Perhaps the tenant will realize you are serious and find some money once he receives the summons to appear in court.

Nathan Gesner · Answer

I would start the eviction process. You can start by talking to the tenant. See if they're willing to leave if you forgive the remaining unpaid balance. If not, start the eviction and force them out.

It's a shame your Property Manager isn't leading the way on this.

Kenny Dahill · Answer

@Jesse Stein, unfortunately, they won't catch up.  Best to find a solution that benefits both parties: tenant leaving and not having an eviction on their record.

They may be reluctant to leave because of difficulties finding their next home.  However, that is their issue and not yours.  Explain to the tenants you are going to follow the legal and lease procedures but if they know they cannot make the payments in time to get back in good standings, convince them it's best both parties agree to terminate the lease.

As for your property manager, yikes.  3 months late and they're not enforcing their lease agreement?!  Time to find a new PM.  Review your service agreement and if they're in breach, send them notice because that's scary to be 3 months behind.

Theresa Harris · Answer

It is good to work with tenants, but if they haven't paid for 3 months and only asked for rental assistance for 2 of those months, enough is enough.

I don't get tenants who pay no rent-yes there are situations where they lose a job, but get another one (may not be your dream job, but it pays the bills) and talk to the landlord to work out a plan and follow it.

Tyler Rasmussen · Answer

Serve immediately and follow the process. We manage hundreds of homes and have been burnt so many times trying to work with the tenants. Set your process and stick to it.

Manco Snead · Answer

Much thanks for the responses. I think the consensus is unanimous. Time for the eviction.

Bud Gaffney · Answer

Eviction process immediately.

Jaron Walling · Answer

I agree with all the previous comments. An eviction benefits nobody and hopefully the tenant understands that. If you're lucky they magically come up with the money, or accept cash-for-keys and move out. Worse case it's an eviction.

Jon Kelly · Answer

@Jesse Stein What does your lease say? What have you and your property manager agreed to do in these instances? It's so important to understand the role of your property manager, ESPECIALLY, if this is an out of state property.

Tenant Not Paying Rent; What To Do?

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