Tenant Needs Help and Can't Pay Rent

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Tenant Needs Help and Can't Pay Rent

Brandon Johnson
Investor · Baton Rouge, LA · Member since 2014 · 280 posts · 219 votes

Attention Bigger Pockets Landlord Community,

I have a tenant in Baton Rouge, LA in a low income subdivision whose daughter (living with her) has been dealing with cancer and was given up on by the medical community and she was sent home to be comfortable as the end of her life is expected soon (but she keeps hanging on).  This family has been struggling to pay rent due to this situation and they are currently a month behind on paying.  Last month I credited them $300 of the $650 that was due in order to help out because charitable giving is a big part of my life and my success and something I like to do as much as I can.  

This morning I got a call from their church because they were going to lend some financial assistance, but could only provide $200 and that was conditioned on them being able to come up with the remainder of January's past due rent.  I know they are truly falling on hard times as this family works low paying jobs.  I'm not sure what to do because I know I can't continue to let them stay and not pay rent.  Has anyone else ever had to deal with a similar situation and if so, how did you handle it?

The family has setup a Gofundme campaign that never really gained any traction.  I'm really just looking for advice on the matter.

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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y

I have dealt with a similar situation and the bottom line is you either let them live for free or inform them they must move.

The daughters condition is irrelevant. Tenants have payment issues of all sorts and regardless of the cause the end result is always the same....the landlord either loses money or deals with the issue on a professional bases.

Charity or business, it is your decision.  

The question for you is whether allowing them to owe money will pay off. Once the daughter is dead will they catch up or immediately move out leaving you holding the bag. My guess is once the funeral is over they will move.

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y

    Are they finally out of the unit. If not it is still not over and is far too soon to think it is resolved. Once they stop getting handouts they will again no longer be able to pay rent and you will be forced to evict.

    1Reply
  • Jeff Sprunger
    Lockport , NY · Member since 2014 · 265 posts · 124 votes
    9y
    Originally posted by @Brandon Johnson:

    @Kweku Ako-adjei I owe this post a long overdue update. 

    @Tami DuBose I'm glad to know I can call on you when I need a bouncer!

    The tenant ended up living for about 3 more months after this post was made.  Because of several of the suggestions posted here I was able to offer some advice that the mother took action on to get some rent assistance.  A home hospice moved in for the end of life care and they made a contribution to the family's rent.  Their local Catholic church made a similar contribution on their behalf and as of today, they are still almost a full month behind on rent, but continue to make significant progress in getting it fully caught up.  Now I am aware of at least two organizations worthy of my charitable donations in the future.

    At the end of the day, I still have a paying tenant, I was able to make a difference in someone's life when they really needed help and they still have a place to live and are not having to deal with being evicted at the same time as losing a loved one.  If the worst case scenario had come to be then I would have been out a couple months rent and had to rehab a unit that has been in rough shape since I acquired it with this tenant already in place.  

    I know the "best practice" is to follow the advice of those who say this is a business and compassion will only cost you money in a situation like this.  I've never been one to play by the rules, so I'm glad my chosen path worked out and I am pleased with the end result.  A huge thanks to all who offered their input here.  I truly appreciate the support of the BP community.  

    Law of Attraction says that thoughts become reality, so choose to focus on the good ones!

    GOD bless you!

    1Reply
  • Brandon Johnson
    OP
    Investor · Baton Rouge, LA · Member since 2014 · 280 posts · 219 votes
    9y

    @JD Martin unfortunately my tenant's daughter did pass away.  

    @Thomas S. per my last post, they are nearly caught up on the rent and still living there, which is exactly what I want.  I'm sure you are very experienced in this business, but you sure hold a very pessimistic outlook.  As a student of the Law of Attraction I can say my experience has always been that I attract what I think about.  If your thoughts are focused on the worst possible outcome, then that is usually what you will receive.  If you focus your thoughts on desirable outcomes you are more likely to manifest those desired results.  It can only be this way because it is Universal Law.  Learning how the Law of Attraction works has taken my business to a new level.

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  • Kweku Ako-adjeiPro Member
    Investor · Seattle, WA · Member since 2014 · 36 posts · 5 votes
    9y

    @Brandon Johnson that's sad that she did pass. You did the right thing, for you. This is what I love about real estate and entrepreneurship. Everybody can run their business how they want. And like you mentioned earlier, you made a big difference in someone's life when they were going thru a tough time. That is good!

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y

    "If your thoughts are focused on the worst possible outcome, then that is usually what you will receive."

    I do not have the gift of mind control or mental telepathy, You may be a student of the Law of Attraction but I am a graduate of the Law of Business. All my decisions are based on my business skills and knowledge of human behaviour. Meditation does not achieve results, actions achieve results. 

    The probability is that your tenant will likely continue to have ongoing financial problems and for that reason alone I would get rid of her. Nothing personal simply a business decision based on probability not "worst possible outcome".  I would channel your Law of Attraction into finding a better tenant.

    My business policies do not include emotions or charity in making decisions.

    Good LUCK with  your business plan.

    0Reply
  • Brandon Johnson
    OP
    Investor · Baton Rouge, LA · Member since 2014 · 280 posts · 219 votes
    9y

    @Thomas S.

    I sincerely appreciate all of your replies and really respect your position.  I'm not trying to start a debate, but I would like to expound on this discussion a little.  I have read a lot of business books over the years before trying my hand at running my own business.  There are two things that I picked up from many different authors who have experienced a great deal of success.  The first is writing goals on paper.  I heard so many people state the importance of this for so long that I eventually decided to give it a try and all I can say is I am continuously blown away by the results I receive from this simple exercise.  My advice to anyone who has never written their goals on paper is to begin this very moment and watch what manifests afterward.  

    The magic of what happens when I write my goals really sparked my curiosity of how exactly that process works.  At first I just attributed it to my subconscious mind going to work for me to ensure I am moving in the direction of achieving those goals because that is the best way I had ever heard it explained in a business book.  I was later led to the answer of my question of how it really works and this understanding has transformed my entire life.  

    The second thing I picked up from books written by several successful entrepreneurs is the power of daily meditation.  I always knew this was something I wanted to try after hearing so many good things about it.  Daily meditation became one of my big reasons for wanting financial independence because while in the rat race I could never find the time to sit quietly for 15-20 minutes every day unless it was right before bed at which point I would just fall asleep even trying.

    I have been practicing this for about six weeks now and it is not easy at first. The statement was made that "meditation does not achieve results" and I felt compelled to reply because I have found that nothing can be further from the truth.  I used to think this sounded so weird and that only new age hippie weirdo types would even speak like this, but since I began meditating I have noticed almost daily occurrences in which the universe seems to move mountains for me so that things may work out in my favor.  I swear it happens almost like magic and a lot of what I have been reading and studying online come from The Teachings of Abraham and Esther Hicks and explain in great detail how this magic works.  Their book Ask And It Is Given is a great place to start.  I thought this would be worth sharing if anyone out there would like to learn how they can transform their life using the Law of Attraction to achieve everything you desire.  The documentary The Secret (available on Netflix) is quite popular and is another good place to start at a higher level learning how to use LOA.

    When you really "get" this stuff you learn that things you desire can manifest with very little action on your part.  Money really does come easy to me now that I have shifted my thinking to believe that to be so.  Anyone can do this and we all "have the gift of mind control or mental telepathy."  I know it sounds out there.  Thanks again for your valuable input to my situation.

    See you at the top!

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