overdue rent

[Dennis Hamilton]

I am sure I am going to get a little beat up over this question....but, here it goes. I have a tenant that owes $1,500 in overdue rent. She is making payments to catch up but is not gaining much ground. Ok...I know, I know...I should have started the eviction process t as soon as she was a week late on rent.

here is my delema....It is really difficult to find tenants for this unit. And, this particular tenant pays over market rent ($820). Do I hang in there through the winter snce I most likey will not find a tenant for this unit until spring? or, hang in there since I am recouping some money...

[Michael Rossi]

First of all, this is a self inflicted wound! You should have started the eviction process the day the rent became late!!!

You're already $1,500 behind on rent, which is two months rent, or more importantly, FIFTEEN MONTH'S WORTH OF POSITIVE CASH FLOW (assuming that this property cash flows correctly). I run my business to generate a profit - not to break even!

IF (and that's a big "if"), the tenant is actually catching up, I would keep the tenant. That would mean that the $1,500 balance MUST go down each month (in addition to the rent being paid). The very first time that the tenant fails to pay toward the past due balance, I would start the eviction process.

What's very likely to happen is that the tenant will do ok for the next two months and then will have more excuses (and no rent) in December. After all, it's more important to buy Christmas presents than pay rent, especially when the tenant already knows that the landlord is a pushover!

Good Luck,

Mike