First tenants, 3 months in and they're out of money and work

[Elijah Williamson]

I closed on my first property in December 2021 and got it rented out by mid January. The tenants I chose are a young couple with 2 small children. They passed my screening with flying colors. Great references from their previous landlords, good credit, no criminal history, made more than 3x the rent and had nearly 11k saved up. They were super excited to move into the property and wanted to discuss staying long term as my lease was only 6 months.

Now, only a couple months into their 6 months lease, they informed me that they're out of work and broke. I was there a few days ago to replace a light fixture and although the house was very clean and well kept, I noticed all brand new looking furniture. New couches, new big screen tvs, new beds Everything was new. I only know it's new(er) because they moved in with very little. Don't get me wrong, the place looked great and I'm not going to tell anyone how to spend their money but now they're asking if "I could work with them" because they're broke and no longer working.

I told them I'll get back to them later and now I'm here, asking for advice. Should I be kicking out this young family or is there another option I could pursue?

[Greg M.]

Quote from @Elijah Williamson:

[...] now they're asking if "I could work with them" because they're broke and no longer working.

"I'd be more than happy to work with you. If you're out by the end of this month I'll terminate the lease with no penalties and refund 100% of your security deposit." 

And while you're making that offer, you better have your eviction paperwork in order because you're probably going to need it.