Tenant does not pay the rent over times. Should I evict him?

Tenant does not pay the rent over times. Should I evict him?

Farmington, MI · Member since 2017 · 41 posts · 7 votes

Hello,

I purchased a single family home last November, and one of the tenants(two tenants are paying rents divided half) has been late paying his portion ever since we took the ownership.

He was late few days but paid in full until January; but extremely late(almost whole month) and did not take my contact many times until I remind the call to the other tenant. I talked to him in the middle of March how you want to sort out the payment, and he said he will pay in full. BUT never happened few times. 

In March I discounted all late fees if he pays all rent at once - but he only paid lesser than half of what he was supposed to pay. The remaining balance is still pass due. I told him what is the status later and he said he wants to make payments every Monday splitting half. I said it is not acceptable until you pay the rent in full. He agreed on the payment by today.

However, as expected, he did not take my call earlier today and did not make the payment. I asked the other tenant, B to remind him again to call him. I told him the final notice if we do not receive the full payment for the rent of April including March, we have to do something to do. 

Here is my situation - This property is my first rental property. My other tenant, B is paying the rent on time very well. However I cannot take the irresponsible tenant A anymore. Tenant B already agreed with my point. 

I wonder how to start off the conversation and move on the next step. I literally told tenant B saying "As long as I receive the remaining balance until the 5th of April, I am good." Tenant A and B do not communicate each other and even tenant B did not like the situation that he needs to deal with. This is almost my final notice and I wonder how to move forward after this. 

Any idea or approach to resolve this situation would be very appreciated.

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Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y

@Grace Fukuda. Why are you accepting rent in portions? Tell the tenants you will only accept rent payment in full. Not partial payments. Then tell them you only will accept payment from one of them. They can figure out who. Then if they don’t pay you going forward evict both.

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  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y

    @Grace Fukuda. Why are you accepting rent in portions? Tell the tenants you will only accept rent payment in full. Not partial payments. Then tell them you only will accept payment from one of them. They can figure out who. Then if they don’t pay you going forward evict both.

  • Specialist · Cleveland, OH · Member since 2018 · 270 posts · 187 votes
    7y

    Send him a notice and file an eviction, he is clearly taking an advantage of this situation.

  • Farmington, MI · Member since 2017 · 41 posts · 7 votes
    7y

    @Alex S.

     I see. I was not wrong at all after all. Thanks for your input. Based on the info I provided, I can file an eviction at anytime, right? 

  • Member since 2018 · 3 posts · 4 votes
    7y

    Grace, 

    I was an apartment property manager for five years in the GA and FL markets, and I have owned rental properties in both states. I am not familiar with the tenant laws in your state, I am not a lawyer, and I am not giving legal advise. I can, however, speak from personal experience. Once your tenant starts behaving the way you are describing, it is time to look for a replacement. He/she is in violation of the lease, so follow your state  requirements and put the wheels in motion to evict him as soon as possible. If you don't you will not only enable him, but your good paying tenant will soon think that he/she can also stay in your property for free. I know it is hard to be a though landlord, but being a soft one can be devastating. Good luck.

  • Farmington, MI · Member since 2017 · 41 posts · 7 votes
    7y

    @Caleb Heimsoth

    Well I did not know until tenant B pays only his portion in last December. I was ok since tenant A paid his portion soon after. but things have changed since he no longer pays his portion at all. Thanks for your input. I did not think in that way at all. I will notify that for this month's portion.

  • Investor · Olathe, KS · Member since 2017 · 123 posts · 99 votes
    7y

    I agree. Only accept payment from one tenant. Let them figure out who has to pay who. If both are on the lease then evict both. If only one you might be able to keep the good one if they can find a new tenant. But put them both on an updated lease and accept payment from only one. As soon as rent is late charge a late fee. Then if they have paid after your set date serve a notice. There's no other way around handling tenants. Be firm but fair and they will learn to do the right thing. 

  • Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
    7y

    When I have one of two (or several) tenants not paying their portion of the rent, I send a new invoice via e mail (this is how all our invoices are sent) reflecting the late fee as soon as the rent is late.  I also mail a copy of the invoice along with the 7 day "Pay or Quit" notice addressed to ALL the tenants on the lease.  

    In Michigan, we can evict if they don't pay the entire rent, so that is how I would proceed.  In some states, you might not be able to start an eviction if they have paid some of the rent.  

    In my lease, tenants are "jointly and severally" liable- meaning if one of them flakes on rent both of them are going to be impacted by it, and you go after whoever you can for the amount due.  The first time the notice goes out usually scares them enough that they aren't late again- not only do they not want to be evicted, they usually don't want their roomies to know they are paying rent late.

    This is the tenant's problem, and the tenant's paying roommate's problem, not yours.  Make sure that is clear to them too.

  • Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
    7y

    EXPECT what you ACCEPT

    you have accepted this poor behavior, and there is no chance it will change going forward. You must evict, THEN you must ensure you make it clear to the next tenant that this is wholly unacceptable.

  • Member since 2016 · 13k+ posts · 12k+ votes
    7y

    Tenants pay late because landlords allow it. Late payment is not a tenant fault it is the landlords fault for not correcting the problem. The time has long past for you to fix the problem.

    Serve a pay or quit notice on both tenants tomorrow. If he pays the full amount owing within the time limits next time he pays late do not accept any money and evict. Tell both of them now that is your plan going forward.

  • Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    Stop calling and talking with the tenants.  Post the required pay or quit and be done with it.  You have allowed the tenant to train you and you need to change it if possible.  Don't get involved in their personal issues and logistics on how they will pay the rent.  The late charge is there for a reason.  Like is too short and cash flow (usually) to low to stress about late paying tenants.

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    7y

    Send them a notice of non payment and start the eviction process.  They rented it together, so as unfair as it may sound, they are in this together.  Do not take any more partial payments.  The tenant paying on time might be able to find a new roommate, but they still need to go through the eviction process.

  • Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    7y

    Give them time to find a property. Eviction here takes 3 months.

  • Rachel JacobsonPro Member
    Rental Property Investor · Member since 2019 · 41 posts · 53 votes
    7y

    Tenant A is depending on Tenant B to get him out of hot water. Your lease should state that they are jointly and severally liable for timely rent payments. You should accept payment from one tenant and let them figure out how to divide it among themselves.

    Tenant A is clearly taking advantage of you. Be firm with your late fees and deadlines. Payments should be made in full unless your tenants want to pay a portion early and the remainder on the due date. An eviction notice will let your tenant know you are serious about him paying the rent on time.

  • Lender · Troy, MI · Member since 2019 · 432 posts · 147 votes
    7y

    @Grace Fukuda

    There are lots of great responses. 

    As this appears to be your first rental; work with an local attorney on this eviction process.  Some may charge a flat fee as many real estate attorneys do this with standard procedures.  

    For future, when you rent with join tenants; they can look up your lease carefully and ensure clearly the name of person responsible for lease.

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