1 roommate out and the other not paying

1 roommate out and the other not paying

Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes

So, I have this situation: 

3 roommates - 1 couple and 1 friend. They all worked at the same place and made plenty of income. Always paid the rent on time. No problem the past 6 months. 

Yesterday I went by to give them something and the girlfriend is in a car, about to leave. She asks me how she can get out of the lease, because she is moving out, that she has broken up with her boyfriend and wouldn't be living there any longer as of yesterday. I told her that she couldn't be released, because she's in a 1-year lease. 

Well, I'm thinking, the other 2 guys make enough to keep it going. The boyfriend calls me a little while later and I say that I had spoken to the GF and that she moved and whether he'd be ok with handling the rent together with the friend. He tells me that the 'friend' hasn't gone to work in 3 months and is just sitting in his room and won't move out or do anything and that he and his GF have been carrying him and paying for everything and is there anything I can do.

I told him that I can't evict only one person, but that an eviction has to name everyone on the lease and thus he would have an eviction on his record as well. He tells me that he can take care of the rent himself, but that it would be late this month and he was going to split it up between paychecks. I told him that I can't accept partial payments and that he'll have to pay me once he has everything together, plus late fee. 

Well, I know this is not going to end well. There's no way this guy can keep up paying the rent by himself. He has children and child support as well and has a baby with the GF that now left. He's been a nice guy and good tenant and he's somewhat in a rock and hard place situation. 

Do I suggest to him that it's best if I just go an file for eviction, so that everyone gets out and he gets rid of the roommate and can start over and I get the house back? If it's not this month, then it'll likely be next month or the month after and since the freeloading roommate won't leave or pay, he can't bring in another roommate.  

I don't want to talk to the roommate, because I don't want to get in the middle of it. They all signed up and they have to figure it out between themselves. 

I had told him that I'd work with him this month, but thinking it over, I think it's just delaying the inevitable. 

What would you do?

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  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Michaela G. I would try and work with him for this month, but beyond that, you will need full payment on time or you move forward next month with the eviction right away after the three day notice expires. You definitely want your property to come vacant in the summer (easier to rent)

    Don't let the girlfriend sign off, she will be liable too should you need to file the judgement. You may not get money right away, but if any of them want to rent, buy a care etc... they will need to satisfy the judgement

  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    I'd tell them best idea is to move,, or find another roommate to carry the load. 

    You want to get it resolved asap and could end up with needing to file. why not accept partial payment.. you can still file for balance of unpaid rent.. I guess it depends on your lease terms but I like money. 

  • Member since 2016 · 13k+ posts · 12k+ votes
    9y

    Immediately serve him with a pay or quit to protect yourself, explain to him that since his payment is uncertain you need to legally protect yourself. Assuming he pays, including the late fee you drop the application.

    You best route of action is to get new tenants but you will need to wait to see what he does next month. If he asks to pay late again in June inform him he will need to pay for June but move by the end of the month or be evicted. Do not allow him to pay late beyond May.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    Thank you all for your comments. My major problem is that the freeloader roommate will likely not move, even if the tenant was willing to. So, eviction will be the only way to get the house back. 

    Or is there anything the tenant can do to get rid of the roommate? I don't believe he has the right to file for eviction, because he's not the owner.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    9y

    I would get rid of them ASAP. I think you were already too generous by offering to work with them this month.

    You said, "...they made plenty of income." What does that mean, exactly? I assume it means they made plenty of income combined, but not as individuals. This gets a lot of Landlords in trouble.

    Say your unit rents for $1,000 a month and your policy is for tenants to make 3x the rent. Three friends apply and each of them earns $1,200 a month or $3,600 combined. The rent would be 27% of their combined income which sounds pretty good to most Landlords. But six months later, one of the tenants decides to leave and you are left with two tenants making a combined income of $2,400. The rent would be 42% of their combined income. It gets worse from there.

    I used to rent to multiple friends until I learned that they fail about 80% of the time. I now only rent to multiples (three or more unrelated people) if each individual makes at least 2x the monthly rent. That ensures one of them could leave and the remaining two can still easily afford the rent.

    None of this addresses the other issues common with multiple unrelated occupants like noise and parking complaints, excess wear-and-tear, etc.

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