HELP: Medical hardship situation with renters

General Landlording & Rental Properties
7yFollow

HELP: Medical hardship situation with renters

Mark Poshak
Investor · Broomfield, CO · Member since 2015 · 12 posts · 1 vote

Current renters are going through a rough patch. It's two adult sons living with older mom. Mom just had another surgery on her ankle so she is limited. Both sons work (they both had decent jobs, came with great recommendations and lived in their last place for 9 years so we have not had concerns until now). Now son #1 has been in the hospital for ulcers and got fired from his job because of it. They are claiming they have no money for rent. They have yet to pay May. They called crying the other day due to the stress and were asking to allow them to at least stay until end of June.

I want to give them a bit of grace knowing that these two situations are legitimate (and they've been good at rent in the past), but I can't afford to keep them in there in anticipation that this does not get any better (medical bills won't just go away). 

Thoughts on how to proceed? Their contract is up in October 2019 so this would be a break of contract. I don't think they will have any money for May or June. I could use their deposit for rent and require them to cover the difference (around $400). 

I don't want to grant them an "if" clause (out at end of June unless you get a job and can pay rent) because I don't want them to scrape together enough money for June only to not have it again in July, and I want to start showing it so I have someone ready. But I don't want to kick them out at the end of May either.

Thoughts?

Thanks.

0Reply
18 views

Most Popular Reply

Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y

It's already the 22nd so you're behind the curve on this one.

I would tell them they have to be out by the end of the month. I would be willing to extend that 15 days if they can apply for rental assistance and catch up on the May rent. If they can't pay the May rent, they need to get out and I certainly wouldn't let them stay to the end of June.

It's a sad situation but you're in no way responsible for it or responsible for taking care of them. You have three grown adults that lived their life paycheck-to-paycheck thinking nothing bad would ever happen. They didn't save up anything for an emergency and now those choices are coming home to roost. It's sad, but it's not your problem.

If you really want to help them, tell them to get out by the end of May. If you want to be charitable, offer to forgive their rent if they are out by the end of May. Just don't extend them because they will likely come up with another reason why they can't move in June. If it were me, I would even start the eviction process just in case they fail to vacate by the end of May.

The DIY Landlord Book4.7248 Reviews
WebsiteView Page
5Reply
See this reply in the discussion

11 Replies

Jump to latestLatest
  • David Avetisyan
    Rental Property Investor · Glendale, CA · Member since 2013 · 685 posts · 334 votes
    7y

    I would ask them to pay rent using a credit card and deal with paying the money later.

    Otherwise, you can either choose to run a business or a charity.  

    To your success!

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    It's already the 22nd so you're behind the curve on this one.

    I would tell them they have to be out by the end of the month. I would be willing to extend that 15 days if they can apply for rental assistance and catch up on the May rent. If they can't pay the May rent, they need to get out and I certainly wouldn't let them stay to the end of June.

    It's a sad situation but you're in no way responsible for it or responsible for taking care of them. You have three grown adults that lived their life paycheck-to-paycheck thinking nothing bad would ever happen. They didn't save up anything for an emergency and now those choices are coming home to roost. It's sad, but it's not your problem.

    If you really want to help them, tell them to get out by the end of May. If you want to be charitable, offer to forgive their rent if they are out by the end of May. Just don't extend them because they will likely come up with another reason why they can't move in June. If it were me, I would even start the eviction process just in case they fail to vacate by the end of May.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    5Reply
  • Jennifer T.Pro Member
    Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
    7y

    I think you are being way too nice and should have already filed for an eviction (after serving a Pay or Quit notice) or given them the option to be out THIS month.  I admit I am guilty of being too nice also sometimes, though not to this extreme.

    Yes.  It is a bummer when bad things happen to good people.  And you can be generally sympathetic to their circumstances, without letting it interfere in your business.  But their problems are their problems.  Don't make them yours.

    Bottom line, they are no longer paying for a service you are providing.  A service that I'm sure costs you a lot of money every month (insurance, property taxes, loan, etc.).  It doesn't matter why they are no longer paying rent.  If they can't pay for the service anymore, they need to go asap.

    Let me also point out that one son is still working.  Sooooo, why haven't they paid SOMETHING for May's rent, even if they couldn't do all of it?  Because you're letting them slide, so they are taking advantage now that times are tough.

    1Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    7y

    @Mark Poshak

    Hi Mark,

    If you want to get involved in their personal issues (?),

    tell them to "Work the System" (and update you on what's going on).

    Here's a local link with several possible helps for them:

    https://www.rentassistance.us/ci/co-broomfield

    Good Luck!

    0Reply
  • Scott P.
    Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
    7y

    I would explain that if they can get the bank to forgive my payment and the county to forgive my property taxes and the insurance company to forgive my insurance, then I would forgive their rent.  

    I'd direct them to the Township Trustee who has a portion of our property tax money in my area to help people in need. The Trustee has a landlord complete some paperwork and pays the rent.

    I'd probably offer to help them by paying the rent they owe if they are out by the end of the month.  If they were a long time tenant I'd offer to pay their deposit at a less expensive place that fits their budget better if they move by the end of the week.

    I'd possibly begin eviction if I hadn't started yet.  I'd explain to them that I have to start now because of the way laws work.

    That's all off the top of my head from past experience.

    0Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    7y

    These types of situations are always difficult so it's good to have a game plan before being faced with the situation. There's always a "story" behind unpaid rent. Many times legitimate reasons. Even if the rent is unable to be paid because the person has medical issues, there was a death in the family, their company closed down without warning or 74 different other things, if someone can't pay rent, they need to leave. They wouldn't expect Walmart to give them 1/2 off on their shopping list and they shouldn't expect their housing to be discounted or free either. It's very difficult for a kind, compassionate person to be faced with these types of decisions while acting as a landlord. Hence the "is this a business or a charity?" question needs to be previously answered.

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    You could try to shift their payments to weekly... Might be easier for them to manage.

    But like mentioned probably best if they come up with an exit plan because it doesn't make sense to be in a place you can't afford. Forgive may and give back sec deposit so they can move on probably the best bet if they can't find some help. No need to make a bad situation worse by them getting an eviction and debts owed attached to their history if it can be avoided.

    Churches can be a good resource for them in current situation.

    1Reply
  • Chuy Gonzalez
    Investor · Long Beach, CA · Member since 2012 · 313 posts · 190 votes
    7y

    BRO....they are tenants...not family members. You needed to have started eviction on the 5th or 10th or whenever your grace period ended....their problems are not your problems. Its a business.

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    7y

    Is it legal to fire someone over medical reasons vs them taking a leave of absence?  

    It is up to you.  You can apply their deposit to their May rent, but are they going to be able to find a new place for June 1 with no money?  If they don't have money for rent, how will the pay for a security deposit?  Has son #1 been able to get a new job to start covering expenses. 

    0Reply
  • Aaron DiCaprio
    Rental Property Investor · Philadelphia, PA · Member since 2019 · 89 posts · 27 votes
    7y

    You need to look after your own best interests and get them out.  It's a shame that they're in that situation and you can give them some flexibility but at the end of the day you're a business owner.

    Since these types of occurrences are unforeseeable, you should look into buying rent default insurance at some point to give you peace of mind.

    Best of luck,

    Aaron

    0Reply
  • Kathy Johnson
    Real Estate Professional · Hayfork, CA · Member since 2015 · 231 posts · 212 votes
    7y

    There are some forms of assistance that the tenant can apply for if they have a pay or quit notice in hand so it may actually help them to be given a notice and it  may help you if they are able to get help paying and/or finding something they can afford.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free