Tenant leaving but can't pay last 2 months rent, payment plan?

Tenant leaving but can't pay last 2 months rent, payment plan?

Madison BalterPro Member
Rental Property Investor · Torrance, CA · Member since 2018 · 19 posts · 2 votes

My tenant has been applying for section 8 starting in June, got accepted but for a unit that doesn't qualify for mine. She told me that if the voucher qualified then section 8 would pay the rent for June, July and now August. However my tenant needs to move and stated in writing she will be out by the 1st of September. She verbally agreed to creating a payment plan to pay me back the rent for June, July and August. Is this legal? Can I go about creating a legal document that can hold her responsible for that lost rent? I know I could keep her security deposit for the lost rent which covers 1 months rent. I'm feeling lost. Does anybody have other ideas for other options. My tenant is willing to work with me but I also realize I may never see that rent money and have to call it a loss. Thanks!

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Quote from @Madison Balter:

My tenant has been applying for section 8 starting in June, got accepted but for a unit that doesn't qualify for mine. She told me that if the voucher qualified then section 8 would pay the rent for June, July and now August. However my tenant needs to move and stated in writing she will be out by the 1st of September. She verbally agreed to creating a payment plan to pay me back the rent for June, July and August. Is this legal? Can I go about creating a legal document that can hold her responsible for that lost rent? I know I could keep her security deposit for the lost rent which covers 1 months rent. I'm feeling lost. Does anybody have other ideas for other options. My tenant is willing to work with me but I also realize I may never see that rent money and have to call it a loss. Thanks!

You're so far into it that you'll never recover the money. Many tenants will offer a payment plan, make one payment, then disappear. 

Since she's so close to leaving, attempting eviction isn't going to work. I would set up the payment plan and let her know that you'll come after her for the full amount if she fails to keep up on payments. Whether you do or not is up to you.


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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    Do a payment plan, but keep her deposit and put it towards her unpaid rent after you've done the move out inspection.

  • Rental Property Investor · St. Louis, MO · Member since 2014 · 741 posts · 424 votes
    4y

    Hey @Madison Balter

    Your tenant may be in danger of loosing her housing voucher, if she owes a past LL for rent. Her case worker needs to know about these unpaid charges (there may be repair and cleaning charges at the time of move-out). In our area, the payment agreement saves the Tenant from loosing their voucher, as long as the payments are paid on time, as agreed.

    Also, our state is still handling out tenant rental assistance with CaresAct funding. See if the program is your state still has money. If the tenant's application is approved, the past rent will be paid in full DIRECTLY TO YOU.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Madison Balter:

    My tenant has been applying for section 8 starting in June, got accepted but for a unit that doesn't qualify for mine. She told me that if the voucher qualified then section 8 would pay the rent for June, July and now August. However my tenant needs to move and stated in writing she will be out by the 1st of September. She verbally agreed to creating a payment plan to pay me back the rent for June, July and August. Is this legal? Can I go about creating a legal document that can hold her responsible for that lost rent? I know I could keep her security deposit for the lost rent which covers 1 months rent. I'm feeling lost. Does anybody have other ideas for other options. My tenant is willing to work with me but I also realize I may never see that rent money and have to call it a loss. Thanks!

    You're so far into it that you'll never recover the money. Many tenants will offer a payment plan, make one payment, then disappear. 

    Since she's so close to leaving, attempting eviction isn't going to work. I would set up the payment plan and let her know that you'll come after her for the full amount if she fails to keep up on payments. Whether you do or not is up to you.


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  • Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
    4y

    You can setup a payment plan but your odds of collecting are slim to none. Do tell your tenant that you plan on reporting the delinquency to their case worker - that might motivate them to go find money somewhere to get you paid up

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