Bottom line up front: I would give her and her family a list of charities/local orgs that could help her bridge the gap and, because we don't know how long she'll be fighting this and less able to earn income, I would also offer to let her out of the lease (maybe even giving her an extra month if she has, like the question reads, done a lot to further my business), and I would file eviction proceedings at the end of this month to show I'm serious that she needs to move.
Discussion:
- I would see if local charitable organizations will cover all or some of her rent for a period of time. I wouldn't apply for her, but I would create a list and give it to her and her son. I got this tip from Mr. Landlord (Jeffrey Taylor).
- I would see if there are local assistance agencies who will help her move into something she can afford on income that won't be affected by medical treatment (if any)
- I would work with her but would also let her know that you can only give her XX months of leeway because this is a business.
- I would also consider, if she's been a great tenant, letting her go without rent payment but she has to be out by the end of next month or face eviction. Again, this is predicated on me reading that she has been a good tenant to you and brought you other business. 1-2 month's rent should be doable, and situations like this is why I recommend my clients maintain 3-6 month's business and personal savings. I would, as others suggested, begin eviction process immediately but let her know that it's strictly business and I am willing to let her out without further payment as long as she's out by end of the month (see above)
- I would keep in mind I have to balance this tenant with the expectations of future ones and not give TOO much leeway: This can be tough for someone like me who has transitioned to "all cash" investments because I can no longer "blame the bank payments" in such situations, but I still feel business is business. I have the leeway to work with a good tenant, but if I give too much leeway and word spreads then I'll start attracting poor quality tenants. So if I were in your position I'd be concerned about balancing that.
- I've watched friends and family members suffer through cancer and it can be a real BEAR! Some people power through, running marathons and such. Others it sucks the life out of them until they are recovered. While I'm all for being compassionate, there's the concern that she may never recover enough to pay you consistently. So whatever you decide has to balance your need to be a "good human" with your need to properly provide for your family's current and future goals.
Hope that helps!
