Hey, has anybody ever had any success in taking/holding other items until rent is caught up? A tenant who is well into the eviction process offered me part of the cash and to hold his four wheeler or car until rent is completely caught up.
My wife says there is too much liability in doing this, but I am considering it.
listen to your wife! evict.
You're not running a pawn shop. Get the cash or get them out. The tenant can sell or pawn his toys elsewhere and give you the money but there's no reason for you to be involved in that hassle.
I would evict as well. There is too much room between the perceived value and what the actual market will pay.
what kinda car?
For the sake of your own sanity, I would definitely avoid these types of things like the plague.
You guys are right, thanks! All the money or nothing!
This rarely ends well in my experience. I MIGHT consider taking ownership (not holding as collateral) of an item of value if I did so at a very steep discount off of its value. I would only consider doing this if I already screwed up myself by carrying the tenant too long. If I did this, I would tell the tenant no more escape tickets and I would NOT hesitate to start eviction as soon as the tenant falls behind again.
Key points - I would do this only if the tenant owed me a lot (my mistake for letting it happen), if I could OWN the items (not hold) AND I was prepared to act quickly as soon as they fell behind again (they will). Otherwise, cut your losses and evict asap.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!