This is my first rental property and I decided to rent to my friend. 1000 move in 500 a month. I let her move in the house in the middle of February for three hundred dollars with the agreement to pay the 700 hundred beginning of March. March came she only gave me 600. Then April came she was late and paid me 600. Now its may her rent is now 500 she is late. I gave her til the 10th to pay the rent and I get a phone call today and she says she can't pay til the end of the month and that she wanted to put her 30 day notice in for June because she can't afford the rent. She has a 1 year lease what do I do?
This is a lesson that every investor learns the hard way it seems. I would include employees, whom we've had horrible experiences renting to (until we made it company policy not to).
In this situation, I would think the friendship is not worth destroying over a lease break. The best thing I would recommend is trying to lease the property while she's still living there, assuming she has it in good shape. Then, if you can get the property leased before she leaves so you only miss a week or two of rent, you can just take that out of her deposit (that's what the 1000 upon move in was, am I correct?) and you can get through this without any substantial financial loss or damage to the friendship.
Good Idea I think I do need to replace the carpet the carpet depending on how bad the carpet is damaged she had dogs and she let them poop all over the place smh. The carpet wasn't even a year old
Let her move out and replace with a new tenant. Lesson learned don't rent to friends or family, just be glad it only went on for a few months, the longer your friend stayed the harder it would be for her to get out.
For the next tenant verify income, credit and background and you can reduce the risk of this happening again.
I agree that a valuable friendship is more important. You can offer the exit suggested and move quickly to minimize lost rental income. You can also offer a payment plan for your friend to eventually make you whole.
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