problematic tenants not paying rent

[John P.]

Hi all.

I wanted to reach out to the community here to see if some sound advice can be given.

2 properties are holding problematic tenants. The tenants have not paid their rent since February and refuse to do so.

Given the pandemic occurring, they are protected by the state of NY for eviction.

Any suggestions on this situation? I'm sure other more experienced investors have experienced this at some point, Just wanted some insight on the solution.

Thank you.

J

[Account Closed]

In CA, even though there's a moratorium on evictions, that doesn't let them off the hook as far as owing the money.  If that's the case in NY, let them know that.  Let them know that if they don't pay, they will still owe the money and they'll face eviction when the courts open up and that their credit will be ruined, even if they move out before a formal eviction can be had, because they'll still owe the money and you'll still be able to get a judgment.  Then explain what that means - that then their wages can be garnished, that judgments can be for 10 years and renewed every 10 years, etc., and you'll be able to hire a collection agency, etc.  You can let them know all of this in a nice way, and say just in case they think it means they won't owe the money, they're wrong... and you might be able to negotiate them out of the unit, at least.