My long term tenant (almost 3 years) has informed me that he’s having some financial issues. Last month the rent was paid in full, but split into 2 payments...this month he shorted me $250. I’m assuming/hoping he will pay the balance before the end of the month.
I’ve never had to charge him a late fee in the past, but I don’t want to allow this to continue. Any recommendations on how to handle this situation?
I'd start shopping for new tenant..
you could waive late fee but he needs to make a weekly payment on rent until it's current.
I'd issue pay or quit,, he may be eligible for emergency assistance and with a pay or quit he would use that to verify that he needs financial assistance for housing rent .
Stick with your state landlord tenant laws on this and suggest he ask family for help if needed. that you understand he may have to relocate and it would be better for you to let him out of his lease than have him not pay and you have to pay more money to file eviction..
@Kevin W. if you do this for one tenant you must do it for all. Or you could be in violation of Federal Fair Housing Laws. I would definitely not get overly emotional about their financial issues because it is exactly that THEIR issue. I would issue the pay or quit and get them out. You are not a bank I am pretty sure they still are making their phone payment etc. when they should be more concerned about paying you.
This is your business and it should be run just like that. I know its not always fun but I do not think it is fair for you to be footing the bill either.
I would suggest telling the tenant that you are sorry to hear that they are having financial problems. Then tell them that since they informed you of this ahead of time you are offering them the courtesy of not charging them any lease breaking fees and return their deposit if they move out by the end of the month and leave the rental in good condition. Also let them know that if they want to stay that the entire rent is due on the first and that you will be forced to file for eviction if the rent is not pain on time. Then follow through with whatever option the tenant chooses.
It is especially important to rent it out before winter so if they can’t afford it anymore this is the time to move.
Definatly need to get rid of your tenant asap. Work it out so you can show the place and find a new tenant without having a vacancy.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing