When its time to let go of tenant?

Question

I have a tenant for almost 2 years that never pays on time. every month I need to chase him for rent and its getting worse and worse. last month he paid on the 22nd and disregarded my request for late fees. my conflict is that he does pay the rent at the end and replacing tenants is costly. When asking him firmly to pay on time he actually raised his voice on me and told me how angry he is that I'm harassing him. I'm not sure if its time to let him go and look for a better tenant (like the rest of my tenants) or just live with it. any suggestions?

Thomas S. · Answer

You asked firmly...that is funny.

As previously indicated you created this tenant problem by not properly managing your business. Replacing this tenant will not make you any better of a landlord and the likely hood is that the issue will repeat.

You need to change your operating practices. Before going straight to a non renew you should serve the tenant a pay or quit notice on the day after the rent is due in November. At the same time you give him a notice to non renew (assuming he is M2M) and inform him that you will withdraw the non renew if he pays within 48 hrs in cash.

If he does pay inform him if he ever pays late again you will non renew and he will be gone.

In the future never allow tenants to run your business and remember you tell tenants you do not  "ask".

Andrew Johnson · Answer

@Doron Rice Is this tenant on an annual lease or a month-to-month?  Is the late fee spelled out in the lease?  I would assume that the late fee provisions are in the lease but you never know.  Anyway, my advice will be counter to many of the people here (although I think @Gail Kaitschuck is right on the money with pay-or-quit) but if the guy just doesn't have the money to pay on time, offer to let him out of the lease.  Offer to give him back his security deposit and let me run along his merry way.  Why?  Sounds like the guy might have a bit of a temper.  And while if you were face-to-face you might have to be worried about him sucker punching you, I'd be worried about him sucker punching the wall, taking a hammer to the kitchen tile, etc.  Whatever he has given you in a security deposit won't cover the what it will cost to make up for 5 minutes of unadulterated rage in your unit.  Sometimes pragmatism is the better part of valor.

Gail K. · Answer

The problem is that you have trained your tenant to respond in this manner.

You can ask "firmly" to pay on time all you want; in the end you accept his rent no matter when he pays.  And yes; it's understandable why; he does eventually pay (although I'm guessing this doesn't include any late fee, does it)  and this helps you avoid having to get him out of there and going through the hassle of finding another tenant.

If getting him out is too much trouble then decide you're going to continue having someone pay when they want (at least they do pay...until, one day when they don't).

If you are sick of all of this pull out your copy of the lease, review the date he's late with the rent, send the appropriate Pay or Quit notice and if the issue isn't resolved with the rent (and the late fee), file for the eviction.

Gail

Jim Adrian · Answer

You should have gotten rid of him along time ago.  He is now training you to put up with his crap.

Rick Stein · Answer

I recently evicted a tenant like yours. I learned a long time ago that having no tenant is better than having a bad tenant. They will suck the life out of you. Get rid of him and let him make someone else crazy.

Brett Rhine · Answer

Hi Doron

Some thoughts:

• Late fees shouldnt be a "request". If rent is late then the fees are now part of what is required
• You arent "harassing" him by reminding him that he needs to fulfill his part of the contract by paying the rent
• It sounds like you are a little bit afraid of being the "bad guy" landlord and now it's the tenant who is in the drivers seat.

It's definitely time to let him go. There will be a cost, yes, but consider that the "price" of removing this thorn from your side.

Good luck.

Michael Noto · Answer

@Doron Rice From personal experience I would be much more wary of the potential cost of keeping this tenant than the cost that comes from a vacancy. This guy doesn't have the money to pay you and eventually the wheels will come completely off.

Jason Boulay · Answer

@Doron Rice When you're asking this question, it generally means that you are overdue for replacing the tenant.

Certainly there are costs involve with the turnover process and leasing to a new tenant, but those cost are very small compared to the time and aggravation you are spending with rent collection.  You are receiving the rent very late now, but I can assure you that will get later and later, especially with the holidays around the corner.  This situation will likely end in an eviction down the road if you allow it to continue.  Pull the plug now and get a qualified tenant in there that is willing and able to pay rent on time.

Jenifer Kynor · Answer

It sounds like the costs incurred from replacing the tenant are well worth it. You should not have to be chasing your tenant down for rent every single month without even receiving late fees. Look for a new tenant, it is not worth the headache.

When its time to let go of tenant?

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