Jack up rent vs. ending tenancy to get them to leave??

Question

Considering my current situation of trying to get a problem tenant out and him refusing to leave, or pay rent, I'm wondering if jacking up the rent and then having HIM decide to move would've been better?? If I had just raised his rent $100 to $600 per month, then maybe he would've started looking to move elsewhere and pay the rent while he looks. I had given him a 30 day notice on his month-to-month. He didn't pay June rent, so then I gave him a 14 day pay or quit. He still didn't pay so I talked to an attorney about eviction. Attorney said I had a good case but it could cost up to $1500. He advised that I wait until the end of the month. The month ended and now tenant claims that he just bought a house yesterday and will hopefully be closing by the end of the month! I left a message for the attorney today so hopefully we can get the eviction filed tomorrow.
Do any of you have better luck with just jacking up the rent??

Cameron Tope · Answer

@Jennifer Rysdam I agree with @Bill Brandt and @Amy Beth - get it filed immediately, as quickly as Minnesota allows.

We always file the eviction for non-rent, following the property code of course, because we view it as not only our job but obligation for the future landlords. If all the landlords never filed the eviction, and just did cash for keys, then there would be no eviction records!

I've been there and it's not a fun situation, especially your first eviction. Going forward the only advice I can give is to strictly follow the local property laws - as soon as they allow you to send notice then evict, do so. Those are the agreed upon laws by your local legislatures and you should follow them to prevent fair housing issues.

Best of luck!

Jennifer T. · Answer

I debated with myself on one of my first tenants if I should give him notice that I would not be renewing his lease or if I should raise his rent higher to compensate myself "so to speak" for the extra time and hassle I spent dealing with him because he was such a mediocre tenant.  Always paid, but always paid late and it started becoming only after I put a Pay or Quit notice on the door.

I decided to increase the rent and, if he didn't like it, he'd give me his 30-Day notice and move out.  His rent increased from $800 to $875...though only $25 of that was an actual rent raise.  The other $50 was also removing the rental discount I'd been giving him for cutting the grass (it was a duplex), because he hadn't done it for the last 6 months.  I'd even warned him on multiple occasions I'd be removing the discount, if he didn't step it up.

Of course, looking back with more experience, what was I even thinking, lol?!?!?  No question I should have just given him notice I would not be renewing the lease.  He was super PO'ed I'd raised his rent and bad-mouthed me to neighbors that I'd "raised his rent $100".  But, instead of giving me notice, he just didn't pay the next month's rent at all and forced me to take it all the way to eviction court.  Still didn't leave, until the morning of the same day the sheriff's visit was going to happen.

Joseph Hammel · Answer

Is it possible that the buying a house story is bull?

If your not sure eviction sounds good to me. It should cost less than 500 if you do it yourself. Sounds scary but it's not that bad.

Tim Swierczek · Answer

@Jennifer Rysdam I don't understand the logic in jacking up the rent.  He hasn't paid and is not planning on paying and if you raise rent you must give notice so it will delay everything.  File a lawsuit in small claims court for what he owes you and the court fees, then notify the title company he is using for the purchase.  This will stop his purchase until he pays you.  The hard part is finding the title company but if you can find his Realtor or lender you can find the title company.

Amy Beth · Answer

@Jennifer Rysdam. I would file for eviction today and try to get a judgment ASAP. If the tenant is truly buying a house they will need to pay the judgment, which can include your lawyer’s fees, to close on their new house.

Bill B. · Answer

I don’t know how fast your court system moves but if you get a judgement before his home closes you’ll get paid as he won’t be able to get a mortgage without paying it off.

Greg H. · Answer

File the eviction. Receiving 0% of the rent is still $0 no matter if the rent is $600 or $6000

Tim Swierczek · Answer

@Jennifer Rysdam  I see.  If the tenant is paying at the time you want them out you can try to raise the rent but you better raise it high neough that if they stay you are still happy.  Otherwise its best to non renew beause its the result you want.   i still recommend filing for a jugement and then stopping the closing.  It's your best chance at getting paid.  If you do not do it now you may never see any money from the tenant.

Theresa Harris · Answer

@Jennifer Rysdam  Check your local laws first. I'm assuming he's not on a lease and he still owes rent for June.  Tell the tenant that he has to pay all of the outstanding rent and that you will be starting the eviction process which will go on his record.  He needs to move out now as he's not paid rent for June (and I'm guessing July).  Tell him he can put his stuff in storage and stay with a friend until his new house closes.

Stephen Akindona · Answer

@Jennifer Rysdam! Good question! I am not sure that jacking up the rent in this scenario would have produced a better outcome. In my experience there are only two types of people that will default on their rent! One is the type that manages their finances poorly, live pay check to pay check, and will lie to you about coming in to pay and try to string you along as long as possible with no intention of every paying. The second type is someone who generally takes care of their business, is responsible with their money but has had a life event knock them down and they are in a situation that they couldn't have foreseen or avoided.

My point is we have to do our best to screen these our tenants on the front end and in the hopefully rare occasion that someone slips through, we need to take immediate action to take back possession.

I typically will offer cash for keys as a first option. If the tenant is not cooperative then I am immediately filling the eviction.

I understand that things happen and tenants sometimes just need someone to work with them, so my rule of thumb is that if a tenant is proactive in their communication I will allow them  to defer the payment 10 days. They are still responsible for the late fee, but I will give them an extra 10 days to get the rent turned in. I do not extend any allowances after this if they fail to bring in the rent. Never let your tenants get more then 30 days behind as most will usually never catch up!

Jack up rent vs. ending tenancy to get them to leave??

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