To Give Notice... Or Not to Give Notice...

General Landlording & Rental Properties
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To Give Notice... Or Not to Give Notice...

Jeremy Mattson
Rental Property Investor · Appleton, WI · Member since 2018 · 51 posts · 19 votes

Hi All, 

So I have a "What would you do" Questions for all my fellow landlords. 

Situation:

I purchased a duplex back in March of 2018. Currently I am fixing up the side I am house hacking on while my tenants (which were inherited...) are living in the other unit. The current tenants has yet to pay their water bill since moving into the place in November of 2017 and the bill as a couple months ago was nearly $800. 

I have issued several warnings to pay the water bill and the tenant said "They had never received the bill, but will pay it right away." This was obviously a lie and more recently they stated that their church was helping the out with this bill and the "Pastor had send the check..." Still no payment has been posted. 

My dilemma is this.. My current unit is still 2+ months away from being ready to rent. If I evict the current tenants I will have 0 cash flow during the rehab and will also need to rehab their unit once they are out. My initial plan was to flip units and fix up the other side once my tenants moved out. 

Would you issue a notice to Pay or Quit? Or continue to push for the payment since I need the cash flow and rent is better than nothing while I rehab the property..? 

Much appreciated, 

Jeremy  

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Wesley W.
Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
8y

Would you rather be stuck with paying their $800 water bill or a $1200 one once you finish your rehab?  I would go to them and tell them if they do not pay at least half of it by month's end, you will have to make a business decision.  I would make it clear to them that they are are sticking YOU with the bill, and not screwing over "The Man."  If, after you've had that conversation, they do not pay up, that speaks volumes as to their character.  If they are knowingly willing to stick you with that bill, what other expenses are they going to toss in your lap when they leave?  I say rip off the band aid and serve notice to cure when you meet with them, and proceed with eviction if necessary.  Nothing good will come from delaying.

Every day at goes by, they are building up their "tab" that you will eventually have to reconcile.

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  • Isaac Barrow
    Rental Property Investor · Indianapolis, IN · Member since 2017 · 84 posts · 35 votes
    8y

    Not to give legal advice but.... 

    It sucks in the short term having to deal with vacancy, but you could probably find a much better tenant and not have to deal with the headache. Because when the other  side of the duplex is rehabbed, you'll still have to deal with those bad tenants, and will want to get them out anyway 

    1Reply
  • Jeremy Mattson
    OP
    Rental Property Investor · Appleton, WI · Member since 2018 · 51 posts · 19 votes
    8y

    As the amount due is so large.. Would anyone accept a partial payment? Maybe $500 to show they are making progress on the payment? 

    If evicted and payment is not made it is added to my property taxes.. 1k+ by the time they'd be out

    Thanks, 

    0Reply
  • Wesley W.
    Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    8y

    Would you rather be stuck with paying their $800 water bill or a $1200 one once you finish your rehab?  I would go to them and tell them if they do not pay at least half of it by month's end, you will have to make a business decision.  I would make it clear to them that they are are sticking YOU with the bill, and not screwing over "The Man."  If, after you've had that conversation, they do not pay up, that speaks volumes as to their character.  If they are knowingly willing to stick you with that bill, what other expenses are they going to toss in your lap when they leave?  I say rip off the band aid and serve notice to cure when you meet with them, and proceed with eviction if necessary.  Nothing good will come from delaying.

    Every day at goes by, they are building up their "tab" that you will eventually have to reconcile.

    2Reply
  • Terre B.
    Aurora, CO · Member since 2018 · 180 posts · 166 votes
    8y

    Quit looking at this as a landlord.  Look at it from their perspective.  THEY don't know your financial situation.  Or they shouldn't.  They shouldn't have any reason to have a clue how fast you can re-rent.  Or the status of your hack side.  For all they know, you would love to have them vacate so you can reno both sides and raise rents substantially.  

      Warnings, reminders are useless.  You've become a nagging wife, I have a husband who can tell you just how motivating that is. (NOT).   Give them a cure or quit.   Now.

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  • Jeremy Mattson
    OP
    Rental Property Investor · Appleton, WI · Member since 2018 · 51 posts · 19 votes
    8y

    I completely agree with all of you and appreciate the feed back. I have contacted the tenant to sit down and talk about the unpaid utilities. They said they will be paid by Friday (when they get paid). I will be issuing a notive to "Pay or Quit" regardless to have documentation of the notice as well hold the tenants feet to the fire. 

    Hopefully we will get this resolved!

    Thanks again

    1Reply
  • Wesley W.
    Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    8y

    @Jeremy Mattson yes by all means continue to follow through with the Notice to Cure. (Not sure "Pay or Quit" is appropriate unless they owe the money to you as additional rent based on your lease language.)

    Most landlords soon learn to only to react on what a tenant does, not what a tenant says they are going to do.  They can promise 6 ways from Sunday; I would proceed with the Notice until you see documentation of the bill paid.

    1Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    8y
    @Jeremy Mattson Look Your going to get stuck with that bill eventually and your worried about a vacancy ??? I would have got this straightened out months ago . BIG mIstake! Are you going To have sympathy for them when the water company puts a lien on your property for non payment ? Is this a business or a hobby for you ? These people are cheating You - not “ the man “ because you are going to be “ the man “ when the Tenants finally realize the rouse is up and duck out in the middle of the night .
    0Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    8y
    I had a similar situation with the power company . Tenant wasn’t paying and had my company LLC listed as the payee because they never called in and switched it over ! Once I caught on I immediately called electric company and told them shut the power off and put up a notice . Which they did and the tenant scrambled to switch it then knowing the fridge and AC was about to be cut off ! Tenants will take advantage of you every time if you let them . Be proactive follow up and take action before problems fester
    0Reply
  • Jeremy Mattson
    OP
    Rental Property Investor · Appleton, WI · Member since 2018 · 51 posts · 19 votes
    8y

    Thanks Dennis! 

    So I understand that works with the power company. But will the city really come out and shut off their water? Sorry if that was a complete newbie Homeowner/landlord questions. 

    Thanks, 

    0Reply
  • Gloria Sheridan
    Rental Property Investor · Marietta, GA · Member since 2018 · 41 posts · 43 votes
    8y

    I'm dealing with this right now. I just finished separating the water meters on a 3-unit property. Brand new tenant in one of the units agreed to pay her own water bill and was supposed to contact the city to set up her account in time for Sept 1 start. I noticed she had not yet done so on Sept 7 (a Friday). I called the City, set the turn-off date for Sept 11 (a Tuesday, not a Monday, cuz I'm nice), and alerted her of her responsibility, framing it as completely out of my control. I have not responded to her calls or texts. She's freaking as her water is getting shut off tomorrow if she doesn't open the account and pay the deposit. Suffice to say, this doesn't bode well for the future.

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