why tenants pay or dont pay

Question

what is everyone thoughts on why they think tenants pay on time or why they they don't pay at all

Richard Balsam · Answer

I've been doing lease options for over 13 years now. Yes, I've become skeptical with tenants ever trying to improve their condition. Why do I say that? Only a handful over all these years actually live by the lease rule, pay on time, take care of the house, and improve their credit scores enough to try at refinancing the home and excersize their option to buy the home. We even help by taking the few that are trying, and do take care of the house, and we owner finance them so they become the true owner on the home with our assistance. We then become their "lender" for a few years while they continue to improve their credit and financial picture.

That said, here is what I find when I take back the home ( read: evict and/or they move out before the lease is up): new 50-60 inch flat screen TV boxes in the garage, DirecTV set tops in all bedrooms ( that they do not live up to the original agreement with DirecTV and return the rented boxes), all of our original lightbulbs replaced with odd, irregular, different color bulbs in most of the lamp sockets ( a 5 socket light fixture that we installed with the correct bulbs will have 3 bulbs at most- none matching - why?!!), motor oil stored in the garage, usually a dead battery there as well, etc. What to make of this?

They have been given a chance to move in and hopefully own a very upgraded home will all upgrades that they could never right now afford, and they are too lazy to: recycle dead batteries ( it's hard to drop off at most car supply stores, Sears, etc), do not live up to agreements with any company ( landlord, DirectV, Dish TV, etc), Always switch jobs ( I approve the lease based on their incomes, and they wait until moved in and then change - as if they know how the landlord "game" is played), etc. Nothing is permanent in their lives. The house is usually extremely dirty after one year - with the same air filter installed -(after I show them how to change it at the lease signing, and it is spelled out to change four times per year), weeds in the yard ( too hard to pull them out as they become big I assume), many times- cars parked half on the grass ( we always have two car driveways and garages - and it is spelled out in the lease not to do this), etc. I could go on- but you see the point. I've had to re-do most of our lease option homes 3-4-5 times over the years with new carpet, paint, stoves that have never been cleaned - since they moved it. etc.

All the above translates into: LAZY, not interested in improving their lives, not trying hard enough at work ( if their home is a mess - imagine them at work!), inattention to actual contracts - and what they sign they need to follow, poor money management, and do not have any idea or care less about what neighbors may think, or feel, living next to a house that is deteriorating in front of their eyes. Yes- I evict these people quickly when I see it - but cannot babysit everyone every month. But I do drive the houses a few times per year just to make sure our homes are still standing!!!

Oh - I have heard from a few honest ones that they cannot pay the rent this month because they have a car repair, had to visit a dying relative, funeral, lost their job, hours were cut, school tuition was due for their son, etc. Yes- I think I've heard it all by now - they use the rent to pay other things far beyond their budget. I think this is your answer!

In case you're wondering...the owner financed families we have - many fall behind - but find a way to get caught up, take care of their home, and even thank me, and many have referred their friends to me who are looking for a home. But...overall, life is good. Just have to dispose of the ones with the excuses, dirty houses, etc. In Georgia- takes 2-3 weeks and they get tossed out ( using eviction companies). My fastest was 10 days from the initial paperwork filing to evict to tossing out. He was a special case...

Greg H. · Answer

I read a story recently that upwards of 60% of people do not have the reserves to cover a $500 car repair.  Americans are living paycheck to paycheck.  I am always amazed though that when tenants are behind, they always seem to keep their cell phones on and cigarettes in their pocket

Linda Liberatore · Answer

I see money management at the foundation of many problems with rent but I would suggest that even when funds are tight if there is an income source someone is getting paid.  It is the job of the landlord to establish priority in that list.  Assuming you did adequate screening then your task is to be sure you are establishing a strong system of reminders so when the 1st of the month arrives there is a clear expectation of rent being paid first.  Many times there are poor money management habits that have been entrenched for years and generations prior to your monthly rent payment .  The idea is not to work upstream but to try to look for ways to identify that during the screening process and avoid it on the 2nd of the month.

Mike F. · Answer

Because you haven't evicted them yet? Other than that, there is no reason why they aren't paying on time.

Tracy Ellison - Bey · Answer

I agree with others who have commented.

Many people are living paycheck to paycheck. So any unexpected occurrence starts a domino effect with other expenses. If they are someone who manages their money correctly they can bounce back and catch up, or set their self up where it doesn't happen in the first place.

We don't have many money management classes being offered at our institutionalize schools. Most people naturally live well above their means.

Either you were given a gift of managing money, or its a learned behavior you worked at. And those are the people I like to look for during the screening process. You might have to calculate some extra days on market, especially if your home isn't renovated competitively with the market, but it will be well worth the wait.

If I'm doing a lease option or lease purchase, I connect them with my credit repair program. I have a great company I work with that educates the consumer, deletes accounts, and creates a future credit plan to achieve their end goal. Which in my case is purchasing a home.

Send me over a PM if I can be of assistance to anyone...

Gail K. · Answer

As someone who anal/obsessive about paying all bills early, it has always floored me that even some of the "nicest" folks with adequate funds (at least on paper) will not pay their rent or not pay on time.

I suspect these are the ones who deliberately seek out private landlords to rent from hoping these landlords will not pursue them as aggressively legally as a large complex would.  And they probably are correct in that assumption; I spoken to a few small time landlords who haven't a clue on the process of evicting someone in Georgia for failing to pay rent (and we're a very landlord friendly state!).

I've also found that when I run a credit check many who have a fair number of accounts over 30 days in arrears (even if they haven't reached the collection stage) are to be avoided over a concern they've become too casual about living like this and thus adding another notice of a late fee (or even a threat of an eviction) doesn't seem to bother them very much.

Gail

Kevin Harrison · Answer

This could be any number or reasons.

-They have backwards priorities

-They are professionals and know they will get several more months out of the home even after you file for evection

-They are simply bad with managing their money

-Something changed in their lives and they can no longer afford to live there/ need to save money to get into the next place

-They bit off more than they could chew initially (similar to being bad at managing money but more future budget related)

The people that do pay are regular people who want a decent place to live and respect how the system works. This would be 90% or more of regular people.

Jassem A. · Answer

I think many tenants try to see what they can get away with or they simply don't have the money and probably don't pay many of their other bills either

why tenants pay or dont pay

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