Accepting partial rent????

Question

Hi All,

I have two tenants that have been with me for just over a year now.  Their lease is officially expired and they are going month to month.  They are nice enough fellas, but they are habitually late every month.  Out of 20 tenants I spend 90% of my time every month hassling these two guys.  Back in December they got behind by two months.  I agreed to waive the late fees just prior to Christmas to help them out.

They were late in January.

I started clamping down in February and served them with an eviction notice in February.  They paid within the 3 days.  All along they keep explaining how one of the tenants has his share but the other is always behind.  I was advised not to accept partial payment and therefore do not accept any payment till the full amount is paid.

The tenant that's always behind asked if I would be willing to accept his half of the rent for the next 4 months when he receives his tax refund.  Something about inability to manage his funds.

My attorney said I might could draft some form of agreement stating that I'm accepting x,xxx.00 from Bob for his half of the rent and Billy is responsible for the other half.  I mentioned my attorney said we could do something of the sorts and they both seem overly eager to do such a thing which raises red flags also.

Just a PITA dealing with these guys.  Curious what others would do in a situation like this.

Gail K. · Answer

Ed; Do you ever watch Judge Mathis on TV?  In many of his cases, the person suing someone they've given a loan to has been told over and over again they'll be paid when the defendants "income tax return comes in".   As the judge points out at least twice a week, he has NEVER seen a case where this has happened.

DON'T take partial rent from these guys.   It's total rent or the eviction road for them.  Simple as that.

We're entering warmer months now.  Easier to find new tenants.

Gail

Robert Herrera · Answer

@Ed Lee  You already said you are spending most of your time dealing with these guys, i would evict. If you accept the partial payment, the other guy will not pay, and they will get to stay there as you already excepted rent for 4 months. You will NOT be able to evict either one of them for 4 months,  if you choose to make this deal. That is why you were advised NOT to take a partial payment. You could alternatively take 2 months FULL payment from the tenant and tell him, his buddy can pay him back if that is what he wants, but you are not going to sit around waiting for the other guy to pay you.

Linda S. · Answer

@Ed Lee,

We have one of those too.. if they are taking care of the place, and otherwise good tenants, why not switch up the lease?    Maybe they just need training in prioritizing rent.    Put on they get the current rent if it's paid by the first, and it'd $50-$100 more if they pay after the first, and put in their a high late payment fee.    This is again only if they are good tenants and you want to keep them.. if not, I'd just let them know in 60-days, you aren't renewing.

Ed L. · Answer

@Jim Adrian that's probably what I should do.  It's just kinda hard to tell someone "no" I'm not going to accept 2 months of prepayment when they are taking decent care of the property and don't have pets.

I swear everyone seems to have indoor dogs nowadays.

Deanna McCormick · Answer

Depends on your lease if it permits partial payments.. if it does ok.. if not your then stuck waiting to file eviction action.. until the following month when they are in total default for entire month's payment. It's like they have one foot in the door and one out.. but you can't kick them out until or start kicking them out until you have a entire month's rent that is owed.. depends on wording of your lease.

Your not the utility company..:)

Ed L. · Answer

@Deanna McCormick what about applying a partial prepayment to the account?

I know some people do this with utility payments.  Water bill is $30 per month and they will send in $100 to be added to their account. Next months water bill will be applied to the credit on the account until its drawn down and there is a remaining balance left over.

Deanna McCormick · Answer

Just tell them that any rent is applied to account,, it's not split,, and no partial payments of rent will be accepted.. so if they prepay any portion it has to be a full payment.

Honestly I'd let them know with proper notice that their lease is not going to be renewed.

Follow your state landlord tenant laws,, it's cheaper than a call to attorney if you can figure it out first.

Ed L. · Answer

Thanks to all that have responded.  You seem to be confirming my concern.

What about the route that @Robert Herrera mentioned if say "bob" wants to prepay for 4 months can I just get them both signing an acknowledgement stating that the months of April and may are being prepaid.  Then they can sort it out amongst themselves.

Follow up question is what if bob wants to pay an odd amount of months forward say 3 or 5.  Would it be okay to accept one full month prepayment with half of the following month going towards a credit??

Jim Adrian · Answer

Its time give them their notice that you are taking back your property since they are month to month.  Start over with fresh new tenants.

Kim Meredith Hampton · Answer

@ed

@Ed Lee can you evict on partial payments? If not, go ah ad and serve the eviction notice. Now is your chance to get rid of your PITA tenants, don't let them try and schmooze you into staying

Accepting partial rent????

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