What is the longest youve gone with out rent?

General Landlording & Rental Properties
9yFollow

What is the longest youve gone with out rent?

Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

Now this might be a hard question for some people to answer honestly, because of course we are all perfect landlords who file as soon as our tenants are late.  :)

I was really pushing it, as of yesterday I had a tenant who still owed me the majority of Februarys rent, as well as March and Aprils...but they got me February and Marches rent. So they were 3 months behind just about.


Whats the longest youve let your tenant slide?

[email protected]301-893-4635Podcast Guest on Show #192
District Invest Group546 Reviews
WebsiteView Page
3Reply
21 views

Most Popular Reply

Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
9y

I don't let it go past that month. Otherwise you have what is referred to as a snowballing effect.

Example those who file bankruptcy maybe only 10% finish the plan and get discharged 3 to 5 years later. The rest gets dismissed sometime during filing or the repayment plan.

The reason is simple. If they cannot pay a regular mortgage payment then they sure can't sustain long term monthly mortgage payment and BK payment on top of that.

Same with a renter. If you have late fees and it goes past that month then next months is due. They keep paying partial and partial and before you know it they are thousands behind in rent or worse. Then you go to court and the judge might say you have agreed to a repayment plan structure even though nothing official in writing as you have accepted partial payments as rent.  

Podcast Guest on Show #47
NNN Invest53 Reviews
WebsiteView Page
3Reply
See this reply in the discussion

13 Replies

Jump to latestLatest
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    I don't let it go past that month. Otherwise you have what is referred to as a snowballing effect.

    Example those who file bankruptcy maybe only 10% finish the plan and get discharged 3 to 5 years later. The rest gets dismissed sometime during filing or the repayment plan.

    The reason is simple. If they cannot pay a regular mortgage payment then they sure can't sustain long term monthly mortgage payment and BK payment on top of that.

    Same with a renter. If you have late fees and it goes past that month then next months is due. They keep paying partial and partial and before you know it they are thousands behind in rent or worse. Then you go to court and the judge might say you have agreed to a repayment plan structure even though nothing official in writing as you have accepted partial payments as rent.  

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    3Reply
  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    9y

    The writing is all over the place you will have trouble soon. 

    1Reply
  • Diane G.
    CA · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    About 7 years ago, I rented my one unit to a CEO of a smallish company.... great guy, good taste, good furniture, kids all go to boarding school in GA.... 2 years in, he started to run behind... 6 months later, completely stopped paying.... I did eviction as quickly as I can, still lost $18k including uncollected rent and attorney fees... Turned out he lost his job...I never rented to mid age, high flying, single income tenant again...
    1Reply
  • Levi T.Pro Member
    Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    We have one right now that is working the system good. We are stepping into month 4. The tenant is an inherited tenant. He's in a batch of about 7 units we just got recently.

    The following month the tenant in question did not pay rents, so we started the eviction process... he managed to kick it out for another month with a sob story to the judge, that got kicked out to a trial, and then we had to start the case over due to a clerical error on the summons. We terminated the lease in writing after that one, and refiled. We have a new hearing next month. Its laughable... he keeps going to court asking the judge to give him more time, but he never pays rent, not one dime, even his old LL said he never got rent for January... The man has not paid rent for almost 5 months and is still kicking. Hopefully the judge puts an end to his shenanigans here shortly.

    It is by far one of the longest cases I have seen us have, tho I remember this one case I watched back in my early years in the court room. The husband got put into a looney bin, which means you can't stand trial for eviction till you are mentally sane.. wife and kid was still living in this landlords unit without paying rent... 2 years later... yeah, that's scary!

    2Reply
  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    9y

    I have gone a month a few times and it has never worked out in my favor.  Especially with lower $$$ rentals($500-700) , once the amount due reaches $1000 it might as well be $1 million because they are never going to be able to pay

    1Reply
  • Carlos Gonzalez
    Investor · Phoenix, AZ · Member since 2015 · 346 posts · 170 votes
    9y
    I have a fourplex and I gave the opportunity to rent one unit to one guy 29 years old because he was persistent that he wanted to rent. I didn't trust him he could pay the rent so I didn't sign a lease( he worked at a car wash 20 hrs avg) but I was willing to give him a chance because well, I wanted to get wiser. If he were able to pay the rent on his own for two months I'll make him sign the lease but not until then. His mother paid for 3 months until she moved to Mexico and only paid 2 weeks of rent there after by EFT I called him and text him that rent is due, he said next week he would have the money, I didn't believe him but still gave him a chance. Before the deadline I sent him a text that if he didn't pay by X day this week he needed to vacate the unit and that I didn't not want to involve the police in this matter so man up. He didn't get the money so he vacated the unit. I also inherited one tenant and I raised the rents right away and he told me that he couldn't pay because his wife this and that and he didn't have a job because this and that, in the end I found out he was getting financial aid through stamps and the government. I told him they needed to be out by the end of the month and they did so. If tenants don't pay they gotta be out of the promises. That's common sense to me. As a landlord you need to be aggressive otherwise they'll play the system and you'll be out of rent payment for as long as they want because of "tenant rights". I just didn't let them.
    0Reply
  • Ralph R.
    Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
    9y
    Russell Brazil I had one go for 3 months a few years ago. Single mother, husband left her and 3 kids stopped paying in nov. it's winter holidays Christmas and I let it slide Nov Dec Jan she pays some tells me she's looking for cheaper place. Finally March she is a full 3 months behind. I don't have to evict her PM asks her to leave and she does. Vacant 1 month. That house used to be difficult to rent. Any how I'm out 4 months rent. New tenant moves in. First weekend she's in there refrigerator quits. What?? It's only a year old. I call Home Depot. Get a new one on the way over there. Then I call tenant tell her new refer on the way. Same model as what's already there. She panics and says it's too small?? When new refer gets there tenant calls says new one is fine. The one that didn't work was from an RV. The tenant we asked to leave had switched refrigerators leaving me a broken one and taken the new one with her. My PM didn't catch it. Now when they are late they get a notice as soon as the lease allows. We don't stop the process until we get rent. The goal is to have a vacant unit before the first of the next month. I'm using another PM now too. That took a few more mistakes but I saw the error of my ways there too. RR
    2Reply
  • John D.
    Rental Property Investor · Allentown, PA · Member since 2016 · 279 posts · 105 votes
    9y
    Originally posted by @Carlos Gonzalez:

    I have a fourplex and I gave the opportunity to rent one unit to one guy 29 years old because he was persistent that he wanted to rent.
    I didn't trust him he could pay the rent so I didn't sign a lease( he worked at a car wash 20 hrs avg) but I was willing to give him a chance because well, I wanted to get wiser. If he were able to pay the rent on his own for two months I'll make him sign the lease but not until then.
    His mother paid for 3 months until she moved to Mexico and only paid 2 weeks of rent there after by EFT
    I called him and text him that rent is due, he said next week he would have the money, I didn't believe him but still gave him a chance. Before the deadline I sent him a text that if he didn't pay by X day this week he needed to vacate the unit and that I didn't not want to involve the police in this matter so man up.

    He didn't get the money so he vacated the unit.

    I also inherited one tenant and I raised the rents right away and he told me that he couldn't pay because his wife this and that and he didn't have a job because this and that, in the end I found out he was getting financial aid through stamps and the government.

    I told him they needed to be out by the end of the month and they did so.

    If tenants don't pay they gotta be out of the promises. That's common sense to me.

    As a landlord you need to be aggressive otherwise they'll play the system and you'll be out of rent payment for as long as they want because of "tenant rights". I just didn't let them.

    "If you can't pay, you can't stay!!!"

    1Reply
  • Dean H.
    Rental Property Investor · Salem, OR · Member since 2016 · 202 posts · 305 votes
    9y

    @John D.

    John I'm a man of few words,

    NO PAY= NO STAY

    LOL

    1Reply
  • Christine Swaidan
    Investor · Ventura, CA · Member since 2016 · 264 posts · 70 votes
    9y

    The longest I've gone is about a month. This was a long term tenant who was communicating with me, had kids in school and was injured on the job. The issue went on for a year. I didn't think he would ever catch up but he did.  Surprisingly he is still our tenant and now pays on time. I wouldn't do it again. I worked with him because he was long term and I hated putting the kids out. I'm not that patient or nice any longer. 

    0Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    9y

    I saw this question and thought it was from a brand new landlord. Honestly, @Russell Brazil , I'm shocked it was from you. You give very pragmatic, frank advice in the forums. (One of the main reasons I asked you to be a moderator is your fairness.)

    I really like this thread, because it shows everyone makes mistakes, and also how tough it is when it's actually YOU in the situation.

    Anyone can type out "You need to evict the moment they don't pay!" but it's a lot more difficult in actual practice. Especially when it's a long term tenant or there are small children involved. Who wants to be that guy who kicked the kids out of their home? They already have it tough...

    From your post, it looks like they fell behind up to 3 months in rent and are now 29 days late with April. So in two days, they will again be two months behind. I would wait until May 2, then ask them if they'd like to be let out of their lease. I don't think you'd be working with them if they were awful tenants. Give them until the end of the week, May 6, to be out of the house without filing for eviction, then follow up.

    I'm sure it's really tough to be in this position. You want to be helpful, but they've shown you that they are past helping and moving into charity.

    Good luck!

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    1Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y

    The first time a tenant is late I will give them up to a week to pay. The second time they are late I send the notice on the 2nd of the month. If they do not pay I proceed to eviction. If they pay promptly and are late a third time they go on my "to be evicted list".

    Nothing worse than a tenant that intentionally violates their lease making more work for me. I do not keep bad tenants.

    0Reply
  • Peter B.
    Investor · Ogdensburg, WI · Member since 2016 · 273 posts · 351 votes
    9y

    I pull the eviction trigger pretty quick so tops 60 days. Probably not that long though.

    My folks on the other hand have a couple long term habitual late payers that go 3 months in the winter but get caught up every year come tax time and when they get back to work.  They get their late fee and they are long term tenants so they let it slide.

    Peter

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free