When they don't pay...

When they don't pay...

Brandon TurnerPro Member
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes

I have some tenants who have not paid. They have a 5 day grace period, and that ends today. Just wondering what you other landlords do at this point? Call them, ask them where the money is? listen to the sob story? Or just post the 3-day notice and not even talk to them unless they call? This really is the most annoying part of my landlord job, so if I can just have someone post the notice, it might make this easier.

This is not just the first time either. I've had to call, go over there, make special arrangements, etc for 4 months in a row now.

Thoughts?

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Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
16y

Post the three day notice!

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  • Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    16y

    Post the three day notice!

  • OR · Member since 2008 · 1k+ posts · 845 votes
    16y

    If I have good tenants, I will call them and ask if there is a problem. Seriously, the post office really does lose mail every now and again.

    But if they are habitually late, I'd just post the notice. But with 4 notices in 4 months, they'd be getting their 30 day notice from me. I don't do stress and late rent causes me stress.

  • Real Estate Investor · Select a State · Member since 2010 · 6 posts · 2 votes
    16y

    Agreed.

    It seems like the tenants are getting used to the current arrangement. The 3 day notice will show you mean business, and also give them an opportunity to catch up.

    However, give them an honorable way out by allowing them to make up the back rent within a reasonable amount of time- and don't forget to get the late fees as stated in your lease.

  • Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    16y

    If they haven't paid the rent, they don't need a 30 day notice, they need a 3-day or whatever is required in your state. 30-day notices are used for non-payment related issues.

    This is a SELF-INFLICTED WOUND. The tenants have been late 4 months in a row because you allowed it! It is YOUR responsibility to enforce the lease and the tenant's responsibility to act like a 3 year old. With 3 year olds, if you give an inch, they'll take a mile. The key is that you can't give an inch.

  • Brandon TurnerPro Member
    OP
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    16y

    Thanks guys. Yeah, 4 in a row sucks. However, I did enforce a late fee each time ($65 each time). Apparently they don't mind paying a late fee. Maybe I'm cheaper than the cash-advance places.

    I've issued the 3-day notice in person last time, but that is a lot of stress, and also - i don't like stress. And frankly, $65 a month isn't worth the stress.

    They only signed a 6 month lease, so I only have 2 more with them and I will not be renewing it. So I guess, I might as well collect as much of those nice late fees as possible.

    Biggest mistake on my end - I shouldn't have rented it to them in the first place. I had a bad feeling, but got nervous about not finding someone. I did, however, get a double security deposit from them so I have $1300 to make sure they don't screw me too bad.

    Any more feedback would be great.

  • Brian LevredgePro Member
    Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
    16y

    Make sure you follow the law to the letter. When the six month term is up, the lease will automatically go month to month. Many states require a 60 day notice for landlords to terminate. Don't delay or you will be stuck with them another month.

    You may want to look into adding a clause (check with an attorney) that increases the rent going forward when they are late. That tends to be more effective than getting a late fee tacked on every so often.

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    16y

    Brandon, how did you get them to pay a double security deposit? Everyone I'm dealing with seems to have no money and balks at my $700 sec. deposit, which is less than the monthly rent.

  • Brandon TurnerPro Member
    OP
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    16y

    Well, they LOVED the house. It was suppose to be a "flip" but didn't sell during the summer so I rented it. Bad idea. But it looked nice so they apparently didn't mind the double deposit.

    And yes, everyone I deal with seems to have no money also. I thought it was just my crappy town :)

  • Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
    16y

    ...That falls into the category of: "You live - You learn"...

  • OR · Member since 2008 · 1k+ posts · 845 votes
    16y

    Most tenants can get their hands on some cash. They can always manage the cost of that big screen and there is no problem with all the money for the ciggies, dope, and booze.

    However, if they whine and beg, the landlord might let them in for free. It's always worth a try.

    Real deadbeats, the ones that no sane landlord will accept, can always come up with extra deposit money, or multiple months rent. They like "free" better, but if nobody will take them, they can come up with the sweetener to try to blind a landlord into accepting them.

    Also, most of them can come up with the rent, if the landlord is hard nosed about it. But if the landlord shows any weakness, the rent money gets spent on something else and the landlord only gets empty promises or whining.

  • Real Estate Investor · Chesapeake, VA · Member since 2009 · 20 posts · 10 votes
    16y

    Can I say that I absolutely despise tenants that don't pay..

    It really makes me sick because it is really STEALING..

    they are stealing money from you and your family and that is the way you have to look at it...

    Post the 3 or 5 day or whatever your state goes by pay or quit notice and start the process immediately...

    they will drain you as much as they can and give you empty promises and spend it on other things..!

    That is why I like wholesaling houses so much better...

    I am in ....I am out... I get a check

    End of Story!

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    16y
    Originally posted by Brandon Turner:


    And yes, everyone I deal with seems to have no money also. I thought it was just my crappy town :)

    No, it seems to be a chronic problem here too. :roll:

  • Real Estate Investor · Bayou Vista, TX · Member since 2008 · 58 posts · 8 votes
    16y

    Once they get up to date ask them if there is a better date for them. I had a tenant once who always was late, once we change the due date a few days I never had any problems.....

  • Brandon TurnerPro Member
    OP
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    16y

    just a quick update - apparently the tenant gave birth. Still, knowing the tenants, not a good enough excuse for me but whatever.

    I issued the 3-day notice on Saturday, called my lawyer friend and found out that because I am the owner and I issued the 3-day notice, a judge in my county (state law maybe?) won't allow an eviction. I guess owners cannot file. Who knew.

    So I have to have delivered a new 3-day notice. But now the tenant gets paid tomorrow and "promised" rent at 9:30 tomorrow morning with a late fee.

    So I guess I'll end up waiting till next month to evict- and this time I'll do it right.

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    16y
    Originally posted by Brandon Turner:
    just a quick update - apparently the tenant gave birth. Still, knowing the tenants, not a good enough excuse for me but whatever.

    I issued the 3-day notice on Saturday, called my lawyer friend and found out that because I am the owner and I issued the 3-day notice, a judge in my county (state law maybe?) won't allow an eviction. I guess owners cannot file. Who knew.

    So I have to have delivered a new 3-day notice. But now the tenant gets paid tomorrow and "promised" rent at 9:30 tomorrow morning with a late fee.

    So I guess I'll end up waiting till next month to evict- and this time I'll do it right.



    It sounds like quite a rollercoaster ride you're on with these people. :roll:
    Giving birth is sort of a good excuse, but why couldn't the father bring or mail the rent check?
  • Real Estate Investor · Lake Worth, FL · Member since 2009 · 263 posts · 92 votes
    16y

    If you don't like serving the Pay or quit notice in person you can send it via certified mail. Additionally you can have a pre-made printed statement which includes (date, time, and what was witnessed) for a friend or witness to sign stating they read the notice and witnessed you seal and secure (duct tape) it to the main entry point of the house. I take a picture if there are no witnesses available to show proof of delivery.

    Additionally if you accept partial payment from the tenant then you want to have newly dated pay or quit notice with the new amount in your other hand to give them.

    As for mailing the check, I've offered to go by and pick up the rent, provide self addressed stamped envelopes or meet them somewhere but it always seems like they've put us landlords on the back burner.

  • Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    16y

    Giving birth is no excuse at all!!! Low income tenants have their illegitimate kids ALL THE TIME and they don't get to skip paying the rent just because they brought another future deadbeat into the world. In addition, this tenant has already been late 4 other times - did they have a good excuse each of those times???

    If they pay tomorrow with the late fee - good. If not, evict the deadbeats along with baby deadbeat!

  • Brandon TurnerPro Member
    OP
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    16y

    MikeOH, I like how you think, you sound a lot like my wife. To add to the deabeatness of it, the tenant didn't know she was pregnant till 3 weeks ago. yep. and she just gave birth last week. Its like that show, "I Didn't Know I Was Pregnant".

    And it gets worse.

    A further update - (I might as well keep the story going so people might learn from this mess)

    I stopped by this morning to get the rent and late charge. Once again, no rent. They had $400 (out of $715 owed). They told me they didn't think they had to pay more because they had a really high electric bill from December's energy because they had to use a space heater to heat a bedroom for a couple weeks while i replaced their heater. ... I was slow at fixing it, so maybe a valid argument so i left and said I'd think about it...

    Went to the electric utility company and found out the reason their bill was so high was because THEY DIDN'T PAY THEIR OCTOBER OR NOVEMBER BILL. So now they are trying to steal money from me to keep their power from being shut off.

    And so,

    A new three day notice is hanging on their door (they slammed the door in the face of my "server" friend) and another notice is in the mail. Talked to my attorney friend today, we can file on Monday.

  • Real Estate Investor · Bayou Vista, TX · Member since 2008 · 58 posts · 8 votes
    16y

    I used to listen to all the sob stories, thankfully I now listen to all the people on here..... no rent you get a notice... good luck

  • Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    16y

    If the tenant doesn't pay the rent in full and on time, they get evicted - it's as simple as that!

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    16y

    If they only have 2 months left to go on the lease, wouldn't it make better financial sense to just put up with them and not renew the lease, rather than go through an expensive eviction process?

  • Real Estate Investor · Sacramento, CA · Member since 2008 · 566 posts · 356 votes
    16y
    Originally posted by Bienes Raices:
    If they only have 2 months left to go on the lease, wouldn't it make better financial sense to just put up with them and not renew the lease, rather than go through an expensive eviction process?

    Not if they're not paying rent now and are a couple months late on the utility bill. Their financial hole is too deep and paying rent will be the last thing they pay. Can't get'em out fast enough, now.

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    16y

    I'm still trying to wrap my mind around the "not knowing she was pregnant until 3 weeks ago" part.

  • Brandon TurnerPro Member
    OP
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    16y

    Bienes- me too! Honestly, I thought she might be lying about having a kid too until I saw it. But I wouldn't put it past these people.

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    16y
    Originally posted by Brandon Turner:
    Bienes- me too! Honestly, I thought she might be lying about having a kid too until I saw it. But I wouldn't put it past these people.


    Are you sure it's really her kid? Maybe they "borrowed" it for an hour from one of their friends to use as an excuse for the rent.
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