Unemployed Tenant

[Derek Venhuizen]

I have a 3 bed / 3 bath townhouse that is rented to 3 tenants.  Two of the three tenants have never been late. The third tenant has historically been consistently late yet always has paid in full until recently.  After 15 months of renting the tenant has now informed me that he is unemployed.  He is currently 1 month late and as rent is due on the 1st of August he now owes 2 months rent $2k. I have a 1.5month security deposit from all tenants - what is the best way to handle going forward?

[Steve Babiak]

If dad is supporting, I suggest two things. 

One, get the dad to sign as a guarantor. Of course, dad must qualify as a guarantor. Some people use the term co-signer rather than guarantor, but a co-signer can become an occupant and you wouldn't want that. 

Two, tell the tenant that real proof of the dad supporting him comes in the form of dad covering the rent that is due and then the tenant works out how to re-pay dad without involving you. Notice to quit is your alternative. 

I think you are on the right track in keeping the unit occupied if the payment will be coming in to you. 

Now, this is where "joint and severable" comes into play. If your tenants aren't living in a rooming house, then you have just one lease with all three if them. One total payment due from all three, and if one doesn't pay the others are still responsible for covering the full amount. So look into whether your lease is written like that.