My Tenant has Cancer, rent is late...now what do I do
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Portland, OR · Member since 2016 · 14 posts · 25 votes
10yA disclaimer: Even though I feel compelled to leave you with my two cents, I am a new investor, with no experience managing or owning rentals. You have every right to ignore me. Even so, I do hope you will consider my words.
It is clear that you have no personal obligations to this woman. She is not a friend or a family member, or an acquaintance from your past. The only relationship you have to her is through the document you both signed stating that in exchange for the privilege of staying on your property, she is required to provide you with x amount of dollars paid by date y of each month.
Though her relationship to you extends no further than the terms of that contract, it seems she has done more for you, through her exceptional care for her residence, your property, and her efforts to find you other good tenants.
My suggestion: Do more for her.
Be reasonable, and protect your interests, but please have compassion.
There are plenty of charitable organizations, churches, and other non-profits, who would gladly write a check to you for allowing this woman to stay in her current home, or provide her with a sum sufficient to move elsewhere. Call a few, and see what you can help her accomplish. And, though at least one person has suggested you move toward eviction, you and I both know that having such a recent mark on her rental history would make it difficult, if not impossible for her to find another place to live (not to mention the burdens such a stressful event would impose on her failing body).
She is a good tenant who has, for at least a year, contributed to your financial security and positively impacted the quality of your life. While I won't suggest you support her yourself, you are in a position to help her in a moment of desperate need. I don't see why you shouldn't.
63 Replies
- 10yJoshua DiazPro MemberRental Property Investor · Bronx, NY · Member since 2015 · 269 posts · 165 votes
quite an unfortunate situation for yourself and your tenant.
Now I am not currently a landlord of property manager , but it seems like this is a good tenant based on what you have said about her. Someone who, despite her current situation, is at least making an attempt to work with you.
On the flip side, this is also going to put an undue financial burden on you if it hasn't already.
Were you in NY like I am I would suggest starting the eviction process and then if she made that full payment as promised, putting a stop to it then.
Fortunately for you, I see you are in TX and, if I'm not mistaken, is a landlord friendly state.
Now this is just my opinion and you may hear others very different from my own but if she has been a good tenant and you don't feel in any way that you are being fed stories, I would say give her until the end of the month and work with her. Then , if the situation doesn't change or gets even worse, start he eviction process.
Again, this is only my opinion based on what I know which , admittedly, isn't much.
- Portland, OR · Member since 2016 · 14 posts · 25 votes10y
A disclaimer: Even though I feel compelled to leave you with my two cents, I am a new investor, with no experience managing or owning rentals. You have every right to ignore me. Even so, I do hope you will consider my words.
It is clear that you have no personal obligations to this woman. She is not a friend or a family member, or an acquaintance from your past. The only relationship you have to her is through the document you both signed stating that in exchange for the privilege of staying on your property, she is required to provide you with x amount of dollars paid by date y of each month.
Though her relationship to you extends no further than the terms of that contract, it seems she has done more for you, through her exceptional care for her residence, your property, and her efforts to find you other good tenants.
My suggestion: Do more for her.
Be reasonable, and protect your interests, but please have compassion.
There are plenty of charitable organizations, churches, and other non-profits, who would gladly write a check to you for allowing this woman to stay in her current home, or provide her with a sum sufficient to move elsewhere. Call a few, and see what you can help her accomplish. And, though at least one person has suggested you move toward eviction, you and I both know that having such a recent mark on her rental history would make it difficult, if not impossible for her to find another place to live (not to mention the burdens such a stressful event would impose on her failing body).
She is a good tenant who has, for at least a year, contributed to your financial security and positively impacted the quality of your life. While I won't suggest you support her yourself, you are in a position to help her in a moment of desperate need. I don't see why you shouldn't. - Investor · Buffalo, NY · Member since 2016 · 668 posts · 209 votes10y
The other side has to chime in here. This woman is neither friend or family, let her reach out for charity from others. Do not get involved in her personal life, you are running a business. Keep it professional and follow the lease to protect everybody's rights. Give an inch...
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes10y
Very tough situation and I agree with all the posters. Be tough. Give her leeway. Even having been a landlord through the years, I don't know what I would do. My first instinct would be to work with her. She is having tough situations thrown at her she cannot control. I have seen cancer patients and it is something we all would never want to deal with. That being said, at some point you would have to require all the money or take action. Maybe the first thing to do is ask her if her family can be of any help and explain to them that you care but must keep the money coming in to keep up the property. If not, unfortunately I think you would have to give her a deadline. You could ask her to move without filing an eviction if she cannot pay.
- Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes10y
@Jon Burns That's definitely quite the conundrum. I would work with her and come up with a win-win for the both of you. You can be creative. Best of luck & keep us updated on this. Best of luck!
- Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes10y
I keep a list of local charities and organizations that provide rent and utility assistance. When someone gives me a story about why they can't pay the rent I send them that list and they can do the leg work and try to chase down some assistance. There are a lot of churches, charities and government programs to help keep people from being evicted, especially if it's someone with a short term issue.
- Investor · Sugar Land, TX · Member since 2012 · 554 posts · 232 votes10y
@Jon Burns, that's an emotional pickle. I've worked with tenants before, but never in that unique situation. If you have a good security deposit and the tenant has taken good care of the residence then I would work with them. One of the great benefits of being a smaller operator over the large unit warehouses is flexibility. As long as it's not causing financial stress on your end, I'd work with them for a little while.
- Investor · Sugar Land, TX · Member since 2012 · 554 posts · 232 votes10y
Also, you can always serve a 3-day notice as normal procedure. Then if you do need to evict at a later point, that step is already taken.
- Real Estate Agent · New York, NY · Member since 2015 · 31 posts · 13 votes10y
I think this will be a tough choice. However, at some point, I think we need to bring it back to the reality. I always tell my tenant up front when they move in, if you pay your rent on time, I could be your best friend. However, if you are late, you are technically stealing money from my bank account and I could be your worse enemy. This way, it will prep their mindset that paying on time is their first priority.
I assume not everyone in this business is filthy rich. I would also asked myself if I couldn't make the payments and the bank foreclose on my property, who is going to feel miserable for me? No one but myself. This is a business and it has its own expenses and needs the cash flow to survive. Therefore, I would start the eviction process as soon as you can and then drop the case if they pay up. Good Luck!!
- Cypress, TX · Member since 2016 · 132 posts · 49 votes10y
@Jon Burns you have to keep yourself out of her personal life and the emotions. This is a business. If she can't pay, you need to evict. Be compassionate as you do it but move her out and put someone in who can pay.
- 10yMindy JensenPro MemberBiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
@Jon Burns, this is one of those truly crappy situations that has no good, easy resolution.
Yes, you are running a business, but you are also a human being with obvious compassion for others.
I would offer to let her out of the lease early and waive any lease-break fees you have, and as long as she leaves the property in good condition, refund her entire security deposit and write her a glowing recommendation.
It is obvious that she does not have the financial stability to afford this unit.
- Vendor · Cedar Rapids, IA · Member since 2016 · 34 posts · 66 votes10y
You'll never regret giving her too much grace. If you treat her like you would wanted to be treated (or have your grandma treated) then no matter what happens you'll be able to sleep at night. If you think this business is ONLY about the $$ ... you won't survive. All that being said, just be careful that you're not putting your own family's finances at risk by letting her stay and work out her back rent through payments over several months or years.
- Investor · Asheville, NC · Member since 2016 · 13 posts · 8 votes10y
Surely a tough one. Honesty is the best policy always. I would go and talk to the lady, explain up front why you need to follow the process (3 day notice) Also explain that she may be better off in a place she can afford more easily, taking away the stress of 'owing' or being 'behind'. (A family member? ) Let her out of her lease and give her her deposits back, on a deadline. It isn't that you want to hurt her, but you have to protect your business from a domino effect.. I subscribe always to the policy of Firm, Fair, Friendly. Best of luck.
- Investor · Valparaiso, IN · Member since 2011 · 103 posts · 65 votes10y
Originally posted by @Patrick L.:
I keep a list of local charities and organizations that provide rent and utility assistance. When someone gives me a story about why they can't pay the rent I send them that list and they can do the leg work and try to chase down some assistance. There are a lot of churches, charities and government programs to help keep people from being evicted, especially if it's someone with a short term issue.
This. All day long.
I'd want to work with her, too. And you have been. But you'll have to draw a harder line at some point, which she can probably meet with the help of family, charities, churches, government programs, etc.
As others have said, at the very least I'd offer to let her out of the lease if it's clear she can no longer afford it. Of course, from her perspective, that may give her no place to go...
- Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes10y
I have in the past had a tenant with medical issues and could not pay. But she was there for years, not less than one, and I worked with her and actually reduced her rent for a time until she was back to normal. But this has not been a long term relationship yet, years of on-time payments to look back on, so I agree with @Mindy Jensen and think you should offer her the option of leaving early without penalty as she may have family or friends she could turn to if she knew she wasn't locked into a lease.
- Accountant · Hopwood, PA · Member since 2015 · 125 posts · 92 votes10y
I'm going to throw in something else that hasn't been considered to this point. How much were her referrals to you worth? Have they been good tenants as well to this point? How much time and money did she save you by referring qualified renters?
I may be a bit biased because I have lost both my sister and my mother in law to cancer in the last 2 years, but even from a purely business standpoint, these referrals should be able to be converted into a dollar amount, if you keep track of your tenant acquisition costs. Perhaps you could figure out that amount and apply it toward her rent.
- Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes10y
What, specifically, does she request with you "working" with her? Did you ask?
I'm going to mention a few things from a bit of a different angle.
I mention this as a someone who was diagnosed with breast cancer (luckily early stage) 3 1/2 years go. The surgery was minimal, I was able to continue working through the radiation therapy but toward the end of the 33 treatments it left me very fatigued. Luckily I had mainly a desk job as well as the rental properties in the evening and weekends. No chemotherapy (although a nurse friend next door to me went through radiation and chemotherapy also for breast cancer and was able to continue working full time). As for me, even my supervisor did not know I had been diagnosed with this and was undergoing this treatment (my radiation was scheduled for 7:30 each morning and since the center was around the corner from the hospital I worked at I was at my desk by start of work at 8 am).
The point is while you might respect her privacy regarding her current medical status (and she is, of course, under no obligation to give you the details), it would be useful to know what "treatments" are being discussed here. More surgery? Radiation? Chemotherapy? It is also helpful to know what type of work she does (a desk job or is she on her feet all day long).
In addition, does she have family members who can help her financially at this time?
Gail - Rental Property Investor · Costa Mesa, CA · Member since 2016 · 19 posts · 4 votes10y
Unfortunately, most of us know someone or have personally dealt with cancer. Be compassionate but not a charity. I try to operate under "3 strikes and you're out" rule.
This is an example of why we should have 6 months of expenses in an emergency fund.
Best of luck.
- Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes10y
I would set up some rules or guidelines before things get too far out of hand. This should be done in writing and both party sign the document. It may not hurt to have one of her family members sign it as witness for medical competency. Let her know once she hits "x" dollar amount behind in rent you will start the eviction process. Let her volunteer any medical info to you. This will keep you clear of HIPAA, not sure how this works in this scenario, but a good C-Y-A. Let her help create the guidelines as this will show you have sympathy but trying to protected your interest. She should understand this. Don't come across greedy. If you haven't been in the place lately, do a walk thru so you know the place isn't tore up. Make sure you have a family member contact as well, just incase the worst happens. I would send her a Get Well gift as well. Good luck.
- Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes10y
Originally posted by @Onna-lisa Kyom:
A disclaimer: Even though I feel compelled to leave you with my two cents, I am a new investor, with no experience managing or owning rentals. You have every right to ignore me. Even so, I do hope you will consider my words.
It is clear that you have no personal obligations to this woman. She is not a friend or a family member, or an acquaintance from your past. The only relationship you have to her is through the document you both signed stating that in exchange for the privilege of staying on your property, she is required to provide you with x amount of dollars paid by date y of each month.
Though her relationship to you extends no further than the terms of that contract, it seems she has done more for you, through her exceptional care for her residence, your property, and her efforts to find you other good tenants.
My suggestion: Do more for her.
Be reasonable, and protect your interests, but please have compassion.
There are plenty of charitable organizations, churches, and other non-profits, who would gladly write a check to you for allowing this woman to stay in her current home, or provide her with a sum sufficient to move elsewhere. Call a few, and see what you can help her accomplish. And, though at least one person has suggested you move toward eviction, you and I both know that having such a recent mark on her rental history would make it difficult, if not impossible for her to find another place to live (not to mention the burdens such a stressful event would impose on her failing body).
She is a good tenant who has, for at least a year, contributed to your financial security and positively impacted the quality of your life. While I won't suggest you support her yourself, you are in a position to help her in a moment of desperate need. I don't see why you shouldn't.This, I have to agree with you 100%. I am very disappointed by some of the other replies in this thread. I'm sorry, but if you are "living" off of your cash flow (faux), you are not an investor. Period. I think many of us have yet to learn that love, service, and compassion should trump money, every time. Money is easily made and easily lost. Look at Donald Trump, he has made and lost billions and is now a USA presidential nominee. People place too much emphasis on paper and not enough on relationships, value, and public service. I can guarantee, if those posting in favor of eviction/business as usual got CANCER themselves, they would be singing a different tune.
- Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes10y
Try and get some collateral . A car , something of value . I had a similar situation 7 years ago , but it is my best tenant . He explained the situation , how long they expected him to be in recovery . He dropped off his snap on tool boxes , all 5 of them told me to hold them till he had the money . ( they were full this was BIG $$$ ) He had all the money in 3 months and got his boxes back .
- Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes10y
This kind of situation is difficult to know how to deal with. I have to agree with the "it's business" side of the responses. If one always uses compassion, landlording is not the right business. How does one respond if someone loses their job? They're also in crisis. What about a nasty divorce leaving one partner penniless when the scoundrel runs off with the savings and checking account money? There's no end of opportunities to provide charity but a landlord is not a charity. If you always let your heart determine your decisions, there will be no end of needy people you can help out.
- Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes10y
I'm sorry, but if you are "living" off of your cash flow (faux), you are not an investor. Period.
That statement makes no sense to me. What someone does with proceeds has no bearing on whether it's an investment or not. Lots of people live off their rental income or are striving to get to the point they can.
- 10yColleen F.Pro MemberInvestor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
Letting her catch up is reasonable but if she can't do it then she has to reach out to others and this is sometimes hard for people to do. If you set an expectation now on when you need to take action I think that is reasonable. The $ behind for x weeks would be your calI but if you give her some point when you would act you aren't stringing her along and she isn't stringing you out with an indefinite case of delinquent rent. Depending on the job she may get some disability to carry her and there may be a social worker at the hospital that can point her in the right direction for additional support. She may need to be forced by the situation to ask family for help.
- Lender · Katy, TX · Member since 2016 · 47 posts · 48 votes10y
I want to thank all of you for sharing. There has been some really great insight, and it is appreciated.
The situation may be resolving itself, as she indicated her son wants her to move, but nothing has been set.
I like the comments from @Onna-lisa Kyom and @Patrick L.. For the little bit of time it would take on the front end, it could make conversations like this much easier. I can also see how it can help with tenants who are looking for you to provide the hand out in the way of free rent, it is an easy redirect that puts the responsibility back on the tenant.
For the most part, I have been on the "it's business" side when dealing with tenant issues. And as @John Teachout points out, there can be no end to other peoples unfortunate circumstances, so where do you draw the line. Perhaps it is fear of the unknown of what cancer is and the facing of one's potential mortality that got to me. It just seems as if "it's business" falls short when when you realize we are also in the people business.
Again, thanks to all for responding. It has given me so much to think about, and how to best handle something like this in the future.
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