Should I evict, give notice or wait?

Question

So I recently closed on my first rental property. It's SFH that has had the same Section 8 tenant for over 4 years also with the same PM company. The tenant is now month-to-month and the rent was due on the 1st but has not come in yet. The Section 8 portion was actually pretty late as well but I think it may have had to do with the change of ownership.

I received an email from my PM saying that they were going to start the eviction process unless I told them otherwise. Since it's month-to-month wouldn't it make more sense to just give the 30-day notice that I will not be renewing the lease?

Also with a tenant that's been there over 4 years and according to the ledgers I looked at was never this late paying rent should I wait a little longer in case it's just an issue with the change of ownership?

John Thedford · Answer

I pay my bills on time and expect tenants to do the same. Time for a notice to pay or vacate notice.

Allan Smith · Answer

it sounds like you are playing too soft. Never wait on tenants. Send a pay or quit notice with a 3 day deadline. If they still haven't paid, offer cash for keys. If they are still too dull, file for eviction.

You are the new boss now! Own it.

Jeff Mills · Answer

Thanks ya'll! That's great info!

Craig Sloan · Answer

I would give notice and file the eviction.  If you send non-renewal notice and they don't leave you will still have to evict them.  Start the process now.  If they pay you can always let them stay.

Steve Oswald · Answer

I would also address the month to month.  Was your initial intent to keep this long term tenant in place?  If so, then I would go through the process of getting market rate rent through your city hud office.  If it is at market rate, and they pay after the 3 day pay or quit, I'd get a lease in place with the HUD office to guarantee you that income for the next year.

However, if your intent was to get out of HUD and get market rate renters in there, then I would non-renew.  This may still result in an eviction or you can try the cash for keys to see if that entices the tenant to leave.  I'd also make sure that you or your PM understand the local laws for HUD, to make sure you act within HUD guidelines.

Steve Oswald · Answer

@Jeff Mills Transition between owners, can sometime take a little while to get nailed down, tenants can be hesitant about paying to a different person, especially if they are not given a substantle lead time.  And yes tenants do tend to take advantage of the situation.  All it typically takes though is that 3 day pay or quit as @Allan Smith suggested to let the  tenants know that the new owner isn't a push over.

Personnally, I allow that grace period in the first month of a new take over, and if my PM is dealing with those issues the second month, then we will issue the 3 day pay or quit.  I also make sure my PM is in coordination with the HUD office to make sure we understand when we will get those rents paid.  There may be a lag, but good PMs will have a good idea when rents will be paid by HUD.

Should I evict, give notice or wait?

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