Tennant not paying rent

Tennant not paying rent

Rental Property Investor · Baton Rouge, LA · Member since 2019 · 38 posts · 7 votes

Greeting BP family, 
Here a fellow newbie investor from Louisiana, with a dilemma. Let me tell you the story.

      On May of 2020 i close on my first investment property ( house hack duplex) in width i inherit a tenant. The day of closing i got informed that the rent was due, and of course i have to go collected. Immediately after closing i call the tenant in order to collect the rent, when he notify me that he had a deal with the previous owner staying that he was gone be late, because he lose his job due to COVID-19. I understood the situation and give him the change to pay me the rent of May on the 20th. The 20th the rent was paid via personal check. In june rest came on time awesome! i was very excited because my journey as a landlord have begun. In july rent was late 10 days. Now in august rent have not yet arrived he try to paid through Innago, but it fault because insufficient funds. I send communication to the tennant call him, leave courtesy rent notice, but nothing. Later after that i talk to him personally and he told me that he was gone pay the rent on the 29 (yesterday).

my question is what sho should i proceed?

can i evict him, after Trump executive order?


Please excuse me if my story have grammar errors. English is my second language.

  

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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
6y

@Irwin Velez  look at Louisiana landlord tenant laws. Normally you would serve  a pay or quit notice in compliance with your state law when someone is late with the rent by this much. Whether you can do that depends on whether your state has any special covid-19 regulation still in effect.  If they do not have restrictions-find a lawyer and file for eviction.  If you just want them out but can't file for eviction talk to them about a move out plan. It is important you follow local laws so you don't wind up in a worse situation then you are now. 

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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    6y

    @Irwin Velez  look at Louisiana landlord tenant laws. Normally you would serve  a pay or quit notice in compliance with your state law when someone is late with the rent by this much. Whether you can do that depends on whether your state has any special covid-19 regulation still in effect.  If they do not have restrictions-find a lawyer and file for eviction.  If you just want them out but can't file for eviction talk to them about a move out plan. It is important you follow local laws so you don't wind up in a worse situation then you are now. 

  • Ayne C.Pro Member
    Rental Property Investor · Tampa, FL · Member since 2018 · 251 posts · 124 votes
    6y

    @Irwin Velez

    I know you inherited a tenant, but is that tenant under a lease agreement? If so, check the lease. If not, ask the tenant to sign a lease with you. It will cover how to pay, what happens if they are late etc. Make sure you sit down and explain every section at signing.

    Next time you inherit a tenant you can have them sign an estopel letter during the due diligence period. It will outline their understanding of the rent, what's owed next, security deposits, who owns the appliances, any verbal agreement with the old landlord, etc Google for templates and you'll see what I mean.

    Good luck.

  • Rental Property Investor · Baton Rouge, LA · Member since 2019 · 38 posts · 7 votes
    6y

    @Colleen F. 

    The President executed order don't band eviction?

    thank you Colleen 

  • Ayne C.Pro Member
    Rental Property Investor · Tampa, FL · Member since 2018 · 251 posts · 124 votes
    6y

    @Irwin Velez

    I forgot to say, train the tenant to pay rent on time!! Mine know rent is due on the 1st, late fee in the 5th and a 3 day letter goes out immediately. They know when and how to pay at that point, cashier's check or via Cozy only.

  • Rental Property Investor · Baton Rouge, LA · Member since 2019 · 38 posts · 7 votes
    6y

    @Ayne C. yes he is under a 12 month lease (ends in february 2021)

    thank you  

  • Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
    6y

    @Irwin Velez

    Have all the facts in record.  You didn't buy the property with verbal communication from past landlord.  Time to evict.  Give him notice and proceed.  Chances are you will be dealing with that the rest of your life until he leaves or you evict him.  Good luck.  

  • New to Real Estate · Los Angeles, CA · Member since 2020 · 38 posts · 28 votes
    6y

    @Irwin Velez Hi, sorry to hear about that.

    How strong is your lease with that tenant? What does it say when a tenant refuses to pay rent.

    If you wish to talk more about this privately, just hit me up any time.

    Thanks and sorry for your troubles.

  • New to Real Estate · Los Angeles, CA · Member since 2020 · 38 posts · 28 votes
    6y

    @Ayne C. Very good suggestion... I think it’s always good to let the tenant understand your expectations, and in many ways, this allows for them to respect you even more as a landlord.

  • Rental Property Investor · St Augustine, FL · Member since 2019 · 265 posts · 279 votes
    6y

    @Irwin Velez. What is the work status of the tenant. Do they have a job, if so they should pay rent or be evicted, if not do they draw unemployment, if so they should pay you at least a portion for rent. I once had a tenant who's excuse for being late was they just bought a new car, the next month still no rent, three days later an eviction notice and 7 days later a court date. By by tenant. If it's legal to evict best to do it sooner than later. I don't mind late pay or if someone is struggling a partial pay for a month or so but if you are last on their payday it's time to move in to a new tenant.

  • Rental Property Investor · La Place, LA · Member since 2014 · 109 posts · 82 votes
    6y

    @Irwin Velez look up the justice of peace in your area. They can explain all of your options and the eviction process is pretty simple in Louisiana but I'm not sure how covid would affect it but they can tell you. After that the first step will be to either hand them a notice or put it on their door. That should get their attention. More than likely they are getting enough unemployment to pay you but if they feel they can put you off they will.

  • Rental Property Investor · Baton Rouge, LA · Member since 2019 · 38 posts · 7 votes
    6y

    Thank you John. 

    The justice of peace have to be from the city that the property is located? My property is in Brusly. I did some research in google, but all the justice of peace are located in East Baton Rouge Parish.


    thank you again!  

  • Rental Property Investor · Baton Rouge, LA · Member since 2019 · 38 posts · 7 votes
    6y
    Originally posted by @Josue Vargas:

    @Irwin Velez

    Have all the facts in record.  You didn't buy the property with verbal communication from past landlord.  Time to evict.  Give him notice and proceed.  Chances are you will be dealing with that the rest of your life until he leaves or you evict him.  Good luck.  

    Thank you josue

  • Rental Property Investor · Baton Rouge, LA · Member since 2019 · 38 posts · 7 votes
    6y
    Originally posted by @Fred Cannon:

    @Irwin Velez. What is the work status of the tenant. Do they have a job, if so they should pay rent or be evicted, if not do they draw unemployment, if so they should pay you at least a portion for rent. I once had a tenant who's excuse for being late was they just bought a new car, the next month still no rent, three days later an eviction notice and 7 days later a court date. By by tenant. If it's legal to evict best to do it sooner than later. I don't mind late pay or if someone is struggling a partial pay for a month or so but if you are last on their payday it's time to move in to a new tenant.

    Tennant work at a oil refinery. From my understanding he make good money. 

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    6y

    @Irwin Velez I am not a lawyer but if you read what has been written about this executive order it does not really ban evictions.  Here is a thread where it is discussed and you should also look at your actual state laws https://www.biggerpockets.com/forums/52/topics/862967-executive-order-august-8th

    I suggest you  try looking at what this says, what the Louisiana law says and then call a lawyer.  Getting your tenant to move out willing is probably your best bet. 

  • Rental Property Investor · Baton Rouge, LA · Member since 2019 · 38 posts · 7 votes
    6y

    @Colleen F.

    Thank for the information. That’s exactly what I’m doing reading the laws, and making a package with all the documents. In order to start the eviction process. 

    Thank you again!!! 

  • Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    Irwin, see if there is a local landlord association that you can call /contact. They may have vendors that can help or trainings you can go to.  

    It is VERY important that you understand your local laws.  And fwiw, turning off the water is most likely illegal and is a good way to ensure your tenant will get the upper hand if it goes to court. 

    You will need to post notices and follow thru with each step in the process.  I also recommend discussing with tenant once you understand your local laws. Once they understand you are educated and serious they may decide to work with you. 

    Good luck. 

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y

     Turning off the water is illegal and will work against you if you land in eviction court. 

  • Rental Property Investor · Baton Rouge, LA · Member since 2019 · 38 posts · 7 votes
    6y

    @Joe Splitrock

    Thank you joe!

  • Investor · Baton Rouge, LA · Member since 2014 · 280 posts · 219 votes
    6y

    @Irwin Velez Do you have a mortgage on the property? If so, what type of mortgage is it? If you have an FHA loan or VA loan or other Fannie Mae / Freddie Mac federally backed mortgage, then you may have trouble evicting per the CARES Act. I believe that is the answer you are seeking, but it depends on your mortgage type.

    Conventional or commercial loans are not affected and non-payment of rent is still grounds for eviction.  

    The good news if you have a government backed mortgage is you can call your servicer and request a deferment or forbearance.  If you mention you are experiencing a financial hardship due to Coronavirus (which you are), then my understanding is they are also bound by the CARES Act to grant you the forbearance.  

    I am local so PM me if you need more help.

    Good luck!

  • Rental Property Investor · Baton Rouge, LA · Member since 2019 · 38 posts · 7 votes
    6y

    @Brandon Johnson

    That will be awesome. I just move here from Houston, and buy a duplex with I'm house hacking. My loan is an FHA first time buyer.

  • Rental Property Investor · Baton Rouge, LA · Member since 2019 · 38 posts · 7 votes
    6y

    @Mary Mitchell

    Thank you so much for the advise!

  • Rental Property Investor · Irvine, CA · Member since 2015 · 7 posts · 2 votes
    6y

    @Irwin Velez - I just sent you a PM.  I'd suggest you get the paperwork in order for eviction.  Delivering a notice goes a long way.  Also, I think West Baton Rouge parish courts are accepting eviction filings now.  Side note: @Irwin Velez and @Brandon Johnson - I am from and invest in BR.  I now live out of state.  

  • Rental Property Investor · Baton Rouge, LA · Member since 2019 · 38 posts · 7 votes
    6y

    Thank you Justin!

  • Flipper/Rehabber · Phoenix Arizona · Member since 2020 · 1k+ posts · 686 votes
    6y

    If he can't afford to pay the water because tenant(s) don't pay rent, Not many Judges would not understand .  Like a tenant not paying rent is going to take him to court!!!!

    Have the tenant understand that you can't pay the water without the rent money!!!

    Simple!!

  • Investor · Troy, NY · Member since 2020 · 120 posts · 93 votes
    6y

    I would get ready to evict. What is the reasoning the tenant can't pay? Is COVID a valid excuse if he hasn't lost his/her job at the Refinery? I actually just walked away from my first deal due to inheriting a tenant who was already late on Rent, something i just didn't want to deal with.

    Try & get a valid excuse and if not, like other members have said i would evict if possible. Sounds like they are going down a slipper slope.

    Best of luck!

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