Would you raise the rent?

[Christine Swaidan]

Tenants have been in place for 7 years and for the most part have been good with regard to paying and following rules. I raised the rent one year ago by $100. (First increase.) Still below market but it's a big place and would be a pain to rehab if they leave.

Tenant texted me on July 7 to let me know her husband  had fallen, broke his arm and had to have surgery. She said she would pay partial rent of $1500 on July 8.

July 8 tenant deposits $1400, saying she had to hold back $100 for FOOD! Both are employed and I am shocked that there seems to be no emergency fund. They don't have money for food?? She says she will let me know when they receive the next check, next week so she can pay the balance of $700.

The thing is, in my attempt to be a better landlord I have already prepared rent increase notices ($50)that I was planning on sending out by July 15. Here I am letting my emotions enter into this decision. Should I still send out the notice?

To further complicate, this is one of two townhouses and I want to keep the rents the same for both so they would both get increase notices. I'm leaning towards sending them anyway.

[Account Closed]

Originally posted by @Christine Swaidan:

Tenants have been in place for 7 years and for the most part have been good with regard to paying and following rules. I raised the rent one year ago by $100. (First increase.) Still below market but it's a big place and would be a pain to rehab if they leave.

Tenant texted me on July 7 to let me know her husband  had fallen, broke his arm and had to have surgery. She said she would pay partial rent of $1500 on July 8.

July 8 tenant deposits $1400, saying she had to hold back $100 for FOOD! Both are employed and I am shocked that there seems to be no emergency fund. They don't have money for food?? She says she will let me know when they receive the next check, next week so she can pay the balance of $700.

The thing is, in my attempt to be a better landlord I have already prepared rent increase notices ($50)that I was planning on sending out by July 15. Here I am letting my emotions enter into this decision. Should I still send out the notice?

To further complicate, this is one of two townhouses and I want to keep the rents the same for both so they would both get increase notices. I'm leaning towards sending them anyway.

 I think you're going to lose them anyway.  The one having surgery can get state disability, if they're in CA.  

I'd tell her that you're really sorry about their situation, but you will need the full rent paid by the 15th, and you can't allow her to pay late next month.  That hubby should be qualified to get state disability while he recovers.  That you are raising all rents by $50 on all of your properties, and were going to send out the notice on July 15th, and you can give her a break for one month, but that's it.  

Because, in my experience, once they fall behind, they never catch up.  I have personally been in dire straights before, and I never paid my rent late.  I moved if I had to, with proper notice, but I never paid my rent late.  And when a tenant gets in a bind for whatever reason, and starts paying rent late, with stories about someone being unable to work, etc., if you let them get behind, you'll end up having to kick them out - even if it's amiable - and you'll end up using their deposit for rent and have none left for damages.

Honestly, their financial problems are deeper than anything that is your problem, and they are about to make it yours.  You just can't let them.  You can make it look like you care, by mentioning that you'll let them pay by the 15th, and hold off a month on the increase, but you really don't have to do more than that.

I'm just afraid that if you do, they will have had to move anyway, and now you not only have a big place to fix up, but no deposit left to help offset that.