A little background on the property:
We purchased this 5 unit building in September and inherited 5 tenants. As part of the deal, the previous owner collected rents for September and we began collection starting in October. 4 of the tenants pay on time or close to it(I'm working on training them to pay on time), but one tenant took until October 18th to finally pay all of his rent.
The unit he is in currently rents for the largest amount out of them all, so getting his rent really helps keep cash flow rolling. The unit needs a lot of cosmetic work, so I'm not too worried about him doing much damage if I keep him in place. I also need to mention that his lease was up in July and he's currently month to month with 60 day notice for non-renewal.
My question is, would you keep him in place until Spring when it will be much easier to rent the place out, and maintain at least a slight possibility of getting his rent, or just give him a 60 day notice that we're not renewing his lease and run the risk of having the unit vacant all winter?
I tried to be as thorough as possible, but if any more information is needed, please let me know and I'll get it to you.
I'd personally wait it out and see if he gets his act together about paying more on time., give him late rent notices, and then Pay or Quit's as it apply's and file if you don't get your rent by the time you think works for you.
Get familiar with landlord tenant laws in your state and follow the rules.
I'm sure you've sent a letter to all residents with your information of where and how to pay rent, and emergency call numbers for maintenance. Sounds like you did a walk thru, might not be a bad idea to set it up and do it again and get all the leases/ addendum/ and updated and current with you as landlord. Also get current tenant contacts updated.
Good luck on your new investment
I did send a letter to all the tenants regarding where to send payments and contact information, and did a walkthrough of all the units when we purchased it. I also sent him a Pay or Quit notice and that's when he ponied up the rent. According to his current lease I only have to give him a 5 day notice, and from other Landlords in the area I've talked to, as well as attorneys, that will hold up in court as fair notice.
I did offer to let him pay twice a month, as opposed to one lump sum, but the entirety of the rent must be received by the regular due date. Have you had any experience with this type of situation? And if so, do you normally work with tenants on this level, or just tell them to pay the entire amount all at once?
I would have established new leases with each tenant upon taking possession. Any tenant not paying on time gets late fees assessed each day they are late. If they get past a certain number of days, or are late more than once in a year, its time to find another tenant.
You are running a business, not a charity. Be civil, but put your dealings on paper, get a signed lease, and proceed to follow it. Those who don't can move on: those that do can stay and have a well-maintained unit to stay in.
Don't be scared into thinking you wont find another tenant either. If it thats tough to find tenants, why did you buy a five unit to begin with? C'mon man!
Get a good solid lease. Use it. Enforce when necessary. Rent to the best qualified tenants. Respect yourself, your property, your tenants.
The property is in a really good location and I don't doubt I'd have no trouble renting it out, but to give him the 60 day notice now would put him moving out in the middle of January, and even in the best location, I'm sure it would be hard to rent during that time period.
I guess I should've said that I'm leaning towards keeping him in place and giving him the 60 day notice around January 1st, unless he becomes current and stays that way.
Unless you think it would be faster/more cost efficient to evict him rather than give him notice. On that note, if I would give him the notice and he's not out after 2 months, would I have to file for eviction or could I go straight to the sheriff or constable? Sorry if this is more of an attorney-based question, just trying to get all the information I can and see what options I have available to me.
I don't have a problem accepting money at any time. and would be happy to take early payment or partial payment just as long as paid in full by the 5th, My lease lets me do this.
If he want's to pay early on rent, it would be fine with me. I had guy that did it he got paid on 1st and 15th and wanted to stay ahead of the game.. easier for him to budget.
Sounds like your on track.
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