To Give Notice... Or Not to Give Notice...

[Jeremy Mattson]

Hi All, 

So I have a "What would you do" Questions for all my fellow landlords. 

Situation:

I purchased a duplex back in March of 2018. Currently I am fixing up the side I am house hacking on while my tenants (which were inherited...) are living in the other unit. The current tenants has yet to pay their water bill since moving into the place in November of 2017 and the bill as a couple months ago was nearly $800. 

I have issued several warnings to pay the water bill and the tenant said "They had never received the bill, but will pay it right away." This was obviously a lie and more recently they stated that their church was helping the out with this bill and the "Pastor had send the check..." Still no payment has been posted. 

My dilemma is this.. My current unit is still 2+ months away from being ready to rent. If I evict the current tenants I will have 0 cash flow during the rehab and will also need to rehab their unit once they are out. My initial plan was to flip units and fix up the other side once my tenants moved out. 

Would you issue a notice to Pay or Quit? Or continue to push for the payment since I need the cash flow and rent is better than nothing while I rehab the property..? 

Much appreciated, 

Jeremy  

[Wesley W.]

Would you rather be stuck with paying their $800 water bill or a $1200 one once you finish your rehab?  I would go to them and tell them if they do not pay at least half of it by month's end, you will have to make a business decision.  I would make it clear to them that they are are sticking YOU with the bill, and not screwing over "The Man."  If, after you've had that conversation, they do not pay up, that speaks volumes as to their character.  If they are knowingly willing to stick you with that bill, what other expenses are they going to toss in your lap when they leave?  I say rip off the band aid and serve notice to cure when you meet with them, and proceed with eviction if necessary.  Nothing good will come from delaying.

Every day at goes by, they are building up their "tab" that you will eventually have to reconcile.