tenants haven't paid rent in two months, what are my options

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tenants haven't paid rent in two months, what are my options

Jonathan Vazquez
Los Angeles, CA · Member since 2020 · 5 posts · 0 votes

hello BP family,

i just bought my 1st multi unit property in los angeles last july and currently have a young couple living in the back unit. the couple has not been able to pay april and may rent due to covid-19. i've been very open with them and have tried to promote open communication in regards to setting up a plan on getting the rent paid but all they say is "we can't pay rent right now" mind you they never gave me a letter stating this, or any other forewarning. i also noticed that they just bought a new suv and sports bike which has me scratching my head.

i know that at the moment landlords have their hands tied, but is there anything else i can do? i'm saving text messages/or the lack of but other than that not really sure what else i can do.

i'm considering talking to them this week and offering to forgive april, may, and june rent if they found somewhere else to live by the end of june.

thoughts or advice would be greatly appreciated!

- j

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Karen F.
Investor · San Diego, CA · Member since 2015 · 435 posts · 421 votes
6y

They're just taking advantage of the fact that the courts are closed.  Assuming that they are not illegal, they're getting more in unemployment than they used to earn, plus they got $2400 stimulus money.  You will never see a penny from them.  They will sit there, not paying rent, until you evict them.

Offer them cash tonight, to leave by the end of the weekend.  About a month's worth of rent would probably be enough to motivate them.  Pay them only after they have removed everything, and signed a paper saying that they give up all claim to the unit, and you've changed the locks with them outside.

After it's all over, I don't see why you couldn't sue them in small claims court for the two months of unpaid rent, assuming they have real jobs where you could garnish wages.

You're surely not the only landlord experiencing this.

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  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y

    Many of us are reminding tenants that the rent is still due and eviction proceedings will restart again at some point, depending on where the properties are located. Nonpayment of rent will still impact them. If they can't pay the original amount then perhaps you can propose a payment plan. 

    It sounds like these particular tenants may be able to pay you but don't want to, and don't understand that rent is still due. 

    In my opinion, the mere offer to forgive the rent will mean that they think they never have to pay it, with or without a deal. After all, you're just a greedy landlord in their eyes. Cash for keys is a common offer, you can find the logistics of that here on BP.

    You need to make sure to comply with laws in your area, of course. When will you be able to file evictions again? Will you be able to do so for unpaid rent during the eviction freeze/moratorium?

    Once you do get them out, be sure to review and revise your tenant screening criteria.

    1Reply
  • Karen F.
    Investor · San Diego, CA · Member since 2015 · 435 posts · 421 votes
    6y

    They're just taking advantage of the fact that the courts are closed.  Assuming that they are not illegal, they're getting more in unemployment than they used to earn, plus they got $2400 stimulus money.  You will never see a penny from them.  They will sit there, not paying rent, until you evict them.

    Offer them cash tonight, to leave by the end of the weekend.  About a month's worth of rent would probably be enough to motivate them.  Pay them only after they have removed everything, and signed a paper saying that they give up all claim to the unit, and you've changed the locks with them outside.

    After it's all over, I don't see why you couldn't sue them in small claims court for the two months of unpaid rent, assuming they have real jobs where you could garnish wages.

    You're surely not the only landlord experiencing this.

    2Reply
  • Clarence Johnson
    Real Estate Agent · Inglewood, CA · Member since 2015 · 295 posts · 150 votes
    6y
    I would not offer to forgive rent in exchange for a move out, give them this flier and have them apply for rental assistance.  Cash for keys is not a bad idea, if you Google LA RSO the proper procedure is on the website.  Have you considered applying for a forbearance, not my first idea but better than nothing.  Hope this helps.

    1Reply
  • Jonathan Vazquez
    OP
    Los Angeles, CA · Member since 2020 · 5 posts · 0 votes
    5y

    @Karen F. thank you for relying karen! at the end the tenants paid and shortly after moved out. we def lucked out in that instance.

    0Reply
  • Jonathan Vazquez
    OP
    Los Angeles, CA · Member since 2020 · 5 posts · 0 votes
    5y

    @Clarence Johnson thanks clarence, they actually applied for the assistance and it worked out for them.

    0Reply
  • Jonathan Vazquez
    OP
    Los Angeles, CA · Member since 2020 · 5 posts · 0 votes
    5y

    @Taylor L. thanks taylor, i followed all of your steps and at the last minute when we were about to offer cash for keys they paid in full two months worth of rent. it all worked thankfully!

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