When should you evict a tenant for late payments ?

Question

Hello All,

I've been following BP for several months but generally don't post within the forums.

I have a tenant who recently fell into tough times, and has been unable to pay rent , in full, for about 2 months now. Our verbal agreement was that they would pay one month's worth of rent, into two separate payments, to help accommodate their situation.  At first it was agreed to be  only for a month or two, but now the tenant would like an extension.

In the mean time, I've reached out to my attorney to see what my rights are, for evicting - in preparation, should the tenant fail to meet their obligation of paying in full.

My question is , when should you evict a tenant for late payments ?

This tenant in the past has never given me problems, and has always paid in full prior to these changes, but I'm concerned if this continues, I will end up losing at the end.

I'm not a person who deals with confrontation well, and I would prefer to give them a chance if possible, but at some point, I have to draw a line and get what's owed to me.

Has anyone else in the group ran across the same issues ?

How would you handle it ?

Justin Fox · Answer

@Randall Martinez

I would try and press for full payment quick as possible.  Then try to get the tenant to leave voluntarily if you can.  Tell them if the house is is good shape, you'll give them their deposit back so that they can get into something more affordable.  Would make both of your lives easier.

If you can get this arranged, get it in writing and let the current tenant know you'll be showing the property a month prior to them leaving.

If they put up a fight, might just have to take a hit in order to find a more suitable renter.

Lois Ginter · Answer

I've done the installment thing twice, and got burned each time, and ended up evicting in the end.

Ryan Craig · Answer

@Randall Martinez

I think that is a good way to handle it. Too often we can get wrapped up in the "business" side of this and lose sight of the "humanity" side. Don't get me wrong, this is a business and I will protect my assets, but that doesn't mean we can't compromise at times.

Randall Martinez · Answer

@Justin Fox

I was informed earlier today, I should have a formal response to my letter - requesting a date and time when they believe they will have full payment; The letter is expected to arrive no later than next week.

If the terms of the promise letter is something we can not agree upon, then asking the tenants to leave voluntary could be a viable option.

Randall Martinez · Answer

@Ryan Craig

Agreed,

I know its not easy for anyone to "pull the trigger" on that conversation -- that they fell on tough times and need an extension.  To cover my end, I did send a letter, requesting a date and time when they believe they can pay in full. Something of a promise-to-pay letter, so if I have to evict its not something out of the blue ...

"You basically stated in your promise letter you would pay on this date and this time and this amount. You didn't , so now I have to do ... ... ... ..."

Ryan Craig · Answer

The fact that they came to you ahead of time and laid out their current situation is a good thing. I'm sure they expected it to be only a month or two but when they realized it may be longer they swallowed their pride and were honest. In this case i would have a discussion and see when they fully plan on being back on track. I would grant the extension if I were in your shoes if they have otherwise been good tenants.

When should you evict a tenant for late payments ?

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