Tenant Wants Reduced Rent

[Alejandro Diaz]

I have a tenant that has been leasing a $2600/mo home for the past 3 years. Excellent, pays on time, takes care of property. His lease in on a month to month term. He recently lost his job and wants to stay in the home until his kids finish the school year in May. He asked if the rent can be reduced to $1300/mo or he will have to vacate because he can no longer pay bills. 

At the same time, I have two single family homes for lease in the same subdivision- $2500 and $2450/mo. All are owned by the same person and have been on the market for 30 days. I will have a fourth home in the next week, also $2400/mo. 

I do not think they will rent quickly, as previously it takes about 2 months minimum to find a good tenant.

Some rent better than none? Or have him leave and have 4 vacant homes?

[Thomas S.]

I do not negotiate rent amounts with tenants, I charge and they pay market rent or I find a tenant that can pay. This situation is going  to be a downward spiral and unless you are intending to operate as a charity it is time to cut your loses and find a new tenant. If your emotions are taking priority over your business the road ahead for you is going to be a bumpy one. No good deed ever goes unpunished.

The kicker is being unemployed he will not find another place to live. In which case you tell him the rent is $2600 and he had better find a way to pay or be evicted. That should be incentive enough for him to come up with the money. He will find the money but would obviously prefer that you take the loss. Your tenant is manipulating you.

Business or charity, your decision.