Updated 2 months ago on . Most recent reply
Tenant hardships, asking for rent reduction. Thoughts???
Hi just want to get people's thoughts on this matter. I am currently house hacking a duplex, as well as mid term renting my side when not in use. I bought the house with the understanding that it is a business and have been treating it as such. My first tenants have been renting from me since I bought the house 3 years ago. They are A+ tenants, always pay on time, quiet, respectful, take care of the place, even shovel the snow in the winter here and there. I was just informed of a soon to be situation that will make it hard for one of them to make payments on her own and she asked for a rent reduction if possible. She was telling me that her ex husband that recently passed left her an apartment with lower rent and utilities included. She would like to stay here renting from me, however she doesn't know if she could pay full rent on her own once one of her kids leave in the summer. She's asking for a $300 reduction. I know it is a business, but I am debating just because I travel a lot for work, they look after the house and they are great tenants I don't want to lose. Anyone lower rent before for good tenants? Would love any and all advice or thoughts on the matter?
Thank YOU!
Most Popular Reply
#5 All Forums Contributor
- Real Estate Broker
- Atlanta
Cassandra, consider evaluating a few key factors first: what does your current rental market look like and if she were to move out, how long would it realistically take to secure a new tenant? Would you be able to get the same rent or potentially more with a replacement tenant? Also, assess how a $300 reduction would impact your numbers. Would you still maintain a positive cash flow or would it push the property into the negative?
One option is to offer a temporary rent reduction rather than a permanent $300 decrease. This can provide short-term support to a strong tenant while still protecting your asset and your long-term performance. That said, as you noted, this is a business and you need to treat it as such. If a temporary rent reduction will not help her, there are other qualified tenants in the market and it may be necessary to let her move on.