BiggerPockets

Most of our real estate experience has been "accidental." We bought our first home in Ohio, after being renters in California for the early years of our marriage. We couldn't sell the house in Ohio when we moved back to California, so we rented it out. Bad experience, bad manager. We eventually sold that one, and bought a house in California. Lived there for 20 years, then purchased a new one. Couldn't sell the old one, so we became landlords-- again. Bad manager, bad experience--again. We sold it. We occupied the second one for 23 more years.
We sold that one, and moved to a retirement village in Oregon. Damp, rainy weather, deleterious to my Arthritis.
We then took off for beautiful Idaho. My husband graduated from the Nampa High School, many, many years before. We bought twin town homes, with the thought of living in one side and renting the other. Somehow, I couldn't quite make it in a little two-bedroom, so we lived on both sides. Not much income in that arrangement! By now, it is 2006.
For more years than I can remember, I have been an inveterate real estate newspaper reader. If it had been up to me, I might have bought a new house every year, but my husband has a better grasp on reality.
Finally, my hubby let me have my way. I bought a fixer-upper and fixed 'er up. I made all the mistakes new re-habbers make. Everything was top-of-the-line, which was over-improvement for the neighborhood. But I must say that it was exhilarating to move from a two-bedroom to a five-bedroom. I had it painted from stem to stern, had hardwood floors installed in the living room, hallways and all five bedrooms. Our idea was to sell the town homes and pay off the present purchase. Out of debt--what a concept. But something happened on the way to the real estate market. The economy toppled. So we became landlords--again. We had no difficulty renting the town homes, (albeit, for not enough) and successfully rented each one twice, each time to a single lady.
After living in the five bedroom happily for two years, my better half became a sick half. Bleeding, clotting prostate required surgery. Just before the surgery, he suffered a TIA, but because he was already off his Coumadin, they went ahead and performed the necessary surgery. He came through with flying colors. The next week, he suffered a debilitating stroke. One side was completely paralyzed and he lost his voice. Oh me oh my! I had to give up our precious little foster son.
Five bedrooms now became too much to handle, so back to the town home we went. The other side was rented, and we rented out the five-bedroom, the home of our dreams.
In all the homes we have rented, I never checked the credit of the potential renters, because it cost $75.00 to check each applicant. I relied on gut evaluation of the tenants. It has been rather successful, I must admit.
However, into every life a little rain must fall, and I fear we are getting a little rain this time. I had difficulty finding renters, and lowered the rent. I noticed that some land lords were offering one month free rent, so, in desperation, I offered a free month's rent, with the stipulation that they would pay the second month up front, plus a deposit equaling one month's rent. We had many takers, all with admittedly bad credit, and I finally settled on one family. The application showed an income from several sources--death benefit, SSI, child support, financial aid for college, and food stamps, adding up to $4300.00. (What was I thinking?!!) Actually, what I was thinking was that here was a young man with four little boys, trying to better his life by going to college. Bless their hearts. After all, I felt an affinity for this lovely young couple--I had raised six little boys of my own.
Well, sir, I gave them the month of April for free, collected the month of May, and deferred the deposit until May. When I didn't receive the deposit by the sixth of May, I drove up to their place (our place), just as they were pulling out, without so much as giving me a wave. They were driving a brand new Astro van! They can afford a new car when they're on food stamps?!!!
When I finally was able to contact them, he said he had mailed the payment. Red flag. It is now the last of May, and the mail is still "lost." I have now sent them a certified letter, return reply requested, asking them to stop payment on the "missing check" and I will go up and collect the payment in person. I wrote, "A lost piece of mail containing a check does not release you from paying the bill." I also asked them to pay me with a cashier's check.
Last week, my husband had gall bladder surgery. Fortunately, he is recovering from the stroke, is learning to walk again and is regaining his voice. We needed that good news.
After all this, my question is, "Can you evict someone for not paying the deposit?" Or do you have to wait until they don't pay the rent? If they do pay the June rent, I will give them a receipt for the deposit, and tell them they still owe the rent, because I know I can evict them for unpaid rent.
Oh, yes, I forgot. Our good tenant in the other town home has lost her job and could not pay her May rent! She asked if she could count her deposit as rent for May, and I told her she could. She says she should be able to pay June.
What this boils down to is that I have to "tough up" a little, eh what? My gut feeling failed me this time. (Must have been the four little boys.)
I'm telling you all of this, because I bet there are a number of people in your clientele riding in my boat.

To find paying tenants, and to have the market improve enough for the rent amount to equal or exceed the mortgage and other expenses.

Relief!