Five-month lease for family with financial issues?

Question

I have a tenant in the house who would like to renew the lease for next year. They send me payment via Money Order and December's (2016) rent never showed up. Long story short, I still don't have it. June's rent had a bounced check for half the rent and a money order for the other half. Husband got recently fired and their only income is from the wife's disability. They said they fixed the situation with their checking account and will send the the remainder of June's rent ASAP.

They really want to stay in the house and said they can make the finances work. Assuming I'm going to rent to them, would it make more sense to send them a traditional one-year lease, or just make it a five-month lease with a possibility of extending it after the New Year if payments are timely and there are no other issues going on?

Thomas S. · Answer

You have a lot to learn about people. Get rid of them now or you will end up losing a lot of money.

You need to leave your emotions at home and make smart business decisions.

John Thedford · Answer

Get them out NOW.No more Mr Nice Guy!

Mike Dymski · Answer

Yes, they would like to stay as long as they can since they do not have to pay.  Provide proper notice and find a better resident.  It's hard work making money in real estate and it's near impossible if you plan to subsidize other's lifestyle.  And certainly do not renew their lease for any length.  Sorry for the tough love but it's appropriate here.

Kim Meredith Hampton · Answer

Pawel N. I know it's tough, but you need to treat this like a business!!! If you can't do that, you either need to sell, or let a property manager handle it, they can be the bad guy.

There is a scenario of letting them go MTM and proving their really ready financially, but then you would ruin your chance of the busiest time of the year for renting

Pawel N. · Answer

Thanks for all the tough love. Yes, I am realizing I have a lot to learn. Re-reading a lot of other posts and it's clear I've made a lot of mistakes in the last two years.

Gail K. · Answer

"They really want to stay in the house"

I'm sure they do.  Wouldn't you want to live somewhere for free?

Look; they were poor payers when dad was working.  Now he's lost his job and their only income is moms disability.  What does rent look like in the future?  Not very good.

It is time to cut the cord on this family.  You are not going to get the rest of June's rent and very likely you can kiss July goodbye.   It really is time to start the eviction on these folks and get them out as quickly as possible so you can re-rent the place during the summer months.

Gail

Five-month lease for family with financial issues?

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