Leniency for Tenant Job Loss/Late Rent

Leniency for Tenant Job Loss/Late Rent

Mark S.Pro Member
Rental Property Investor · KY · Member since 2013 · 1k+ posts · 539 votes

Tenant has lived in property for 10 months and has always paid rent in full. Tenant recently lost a job (but found a new one!) and proactively communicated this to the property manager. Tenant is supposedly waiting on delayed paycheck from new job to pay rent and made a commitment to pay rent by end of next week (Sept. 20th). I spoke with property management company and they seemed confident in the tenant’s ability to make payment as they stated the tenant was proactive in communicating with them and it was a “no nonsense” type of approach by the tenant. The PM said they’ve “heard all the stories,” but this seems legit.

I’m concerned that this could lead to perpetual lateness in future rent since September will almost be over before full payment is made. I’ve never had anyone be this late before, but I’m very hesitant to have the PM post an eviction notice when the tenant proactively explained to the PM what’s going on.

My thought is to see if tenant keeps commitment of paying by end of next week. If so, no action needed. If not, start eviction process.

I know some will be harsh and say they would have posted pay or quit notice on day 3 or day 5, etc., but this is new to me and I’m trying to remain calm as the PM seems to think this will work itself out.

Am I being too soft? Should I insist on eviction proceedings (which is likely only going to piss the tenant off, who will then likely destroy the property, etc.)?

0Reply
34 views

Most Popular Reply

Real Estate Broker · Tyler, TX · Member since 2018 · 193 posts · 143 votes
7y

@Mark S. I would trust the PM on this one, if you've had no issues with the tenant in 10 months and he's being upfront about it! Everyone hits a snag every once in a while, sounds like he deserves a break on this one time...if it happens again, time to evict...

See this reply in the discussion

5 Replies

Jump to latestLatest
  • Real Estate Broker · Tyler, TX · Member since 2018 · 193 posts · 143 votes
    7y

    @Mark S. I would trust the PM on this one, if you've had no issues with the tenant in 10 months and he's being upfront about it! Everyone hits a snag every once in a while, sounds like he deserves a break on this one time...if it happens again, time to evict...

  • Rental Property Investor · Shakopee, MN · Member since 2019 · 6 posts · 4 votes
    7y

    @Mark S. I would hold off on the eviction notice. I may be softer with my tenants than most, but when a tenant keeps the line of communication open and has a payment plan in place, I give them the benefit of the doubt. It seems likely your tenant may be late on October rent as well given the timing of when the September rent is being paid and when they will likely receive their next paycheck. 

    I let the tenant know that this is an exception, so that late payments don't become the norm. I wouldn't offer to work with the tenant on late payments if they weren't proactive about the situation or at minimum keep the communication lines open.

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

    @Mark S.  It is your house, so your decision. If your PM believes it is legit, the tenant was proactive in letting them know and got a new job quickly; I'd give him a chance.  At this point it is a matter of waiting 6 days.

  • Rental Property Investor · Round Rock, TX · Member since 2016 · 1k+ posts · 971 votes
    7y

    @Mark S. - usually eviction procedures follow a specific timeline and flow, specific to your state regulations. I would look into that and get clear on how and when you need to post notices and initiate further actions. 

    For example, the late fees might accrue, but you might not be able to charge a late fee till the 5th day past due. BUT you can initiate eviction procedures the day rent is past due - and that might be just sending a registered letter to the tenant. Then 10 days after the letter is received and you have proof of that, you can proceed to court filing, etc. 

    The idea is you give the tenant a break, but you also do the steps you can on your side to protect your interests. That way, if at the end of next week he comes back with another "explanation", you'll not be out of two weeks time and you'll be ready to move to next phase. Maintain communication with the tenant and explain it to him that you do NOT wish to evict him, but in case he is not keeping his promise of pay at the end of the week, then you are prepared to do it. If he pays, all is forgotten, and you continue in good terms. That way it will be clear that business is business, and you have your obligations to fulfill to on your side (does your mortgage give you a break if not paying?) and him on his side.

    Note: do NOT accept partial payments - in most states that resets the clock and you have to restart the procedures again.

  • Asheville, NC · Member since 2017 · 385 posts · 274 votes
    7y

    I agree with @Costin I.. When you post a pay or quit in NC they still have time to pay and with the timeline the state allows, the tenant can be very late and still pay without any real penaltys. You have the ability to waive the late fee also . I have waived late fees and I have let a long time tenant pay late because of their history with me, but I would still get to know the timeline in your state and post the pay or quit anyway just to cover your end. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.