Life happens… there are car breakdowns, medical bills, job loss, funerals and unexpected events in life that derail a person’s normal monthly budget and expenditures. So what do you do as a landlord when responsible for another owners rental property when a tenant falls behind on their rent? When is the right time to evict a tenant or when is it time to give a person some leeway to fall behind on their payments in the hope that they will do what they say they will do and catch up?
I try to follow a few simple rules when allowing more time to avoid a painful and costly eviction and turnover:
- Is the tenant in communication with you?
- Has the tenant been reliable and truthful in the past?
- Does the tenant have access to help such as Emergency Assistance or Salvation Army?
- Is the person employed?
- Make a payment plan that is reasonable and stick to it.
As a property owner and landlord… I will do anything to avoid a costly turnover and a month’s vacancy… and an eviction that costs a lot of money and puts someone and their family out of their home.
I recently had a reliable tenant pay over $4000 that was past due with a combination of tax return money and wages… instead of taking a loss, spending $1500 on a turnover, a month vacant and doing a $700 eviction.
That was a win-win for both of us.