Investor · Jersey City, NJ · Member since 2015 · 304 posts · 48 votes
Hi, I have a tenant renting for the last two years. For 1 year they paid rent on time or say before time, but for the last 1 year they are struggling hard in paying rent, always late, I have been very nice so far,never charged any late fee, kept trying my best to cope with them.
Now it's getting worse, there two month rent is due, seems like they can not afford,so they should try cheaper house.
my concern is should I give them eviction (1 month) notice now, will it make the situation worse..like they stop paying rent at all, or should I wait until rent becomes current again .
I heard if they don't pay rent, then I may have to go to court, since they have two kids court can't evict them, also it may make tenant angry and they may stop paying entirely and may start damaging property also.
What is best way to handle this situation....Thanks
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
7y
They have not paid rent in two months and you think they may stop paying? Wake up. They have stopped paying. You may have to go to court to evict them. The first step is to file whatever notice to quit is required in your State. Do it now. You will not receive rent again until this tenant leaves and you can place another.
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
7y
They have not paid rent in two months and you think they may stop paying? Wake up. They have stopped paying. You may have to go to court to evict them. The first step is to file whatever notice to quit is required in your State. Do it now. You will not receive rent again until this tenant leaves and you can place another.
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
7y
@Raj G. Sorry you find yourself in this situation. If the property is in New Jersey, prepare yourself to learn as much as you can about what you can and can't do. The landlord-tenant laws in NJ tend to favor tenants.
What kind of rental agreement have they signed? Long-term lease or Month-to-Month?
What terms are in the current rental agreement that you have not been enforcing? Be honest. You can undermine your own rental agreement by not following through on what it says.
If you do nothing, the situation will get worse.
If you intend to evict them, then prepare yourself for court and hire a good attorney.
However, you can also offer them a way out of the situation. Talk with them about how this is no longer working for you and if they can't afford the place, it's time to talk about a move-out plan. Mutually agree to end the contract. No hard feelings. Let them out of the rental agreement and let them move-on. Your goal will be to regain possession of your property as quickly as possible with the least amount of damage (physical damage and monetary damage).
The cost to you may be two months rent (everything's negotiable), which is much less than if you went the eviction route. If they're stuck and have nowhere to go, then it may be more involved. Guide them to community resources. Perhaps offer to pay for a truck to take their belongings to a storage locker and pay for the first month of storage. We've done that before and it was much faster and cheaper than eviction through the courts.
Talk with your tenant - my guess is they are as worried as you are. Just see where they are and see if you can come to an agreement on a move out date.
Also, while there are stories of tenants destroying apartments - this is not the usual thing that happens. Plus - you need to regain control of the apartment so there isnt much option of “how”
Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
7y
@Raj G Be sure to give them a timeline and a payback option that works for both of you. Put it in writing and let them knowing they are out by Jan 15 and leave the apt in good condition with no trash, and pay $xx (say 50% of what’s owed) you’ll return their security deposit and not do anything with eviction or collections.
Better to get something than nothing - on both ends!
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
Oh wow You have effectively trained the tenant to be bad by allowing such nonsense . They should have been kicked out a very long time ago . No good deed goes unpunished .you must start taking your business seriously from now
"I told them upfront that you can't not afford so start looking some cheaper apartment."
You are way out of your league in this situation. It will be interesting to see how much you ultimately lose with these tenants. Keep us posted, I expect the numbers will ultimately be astronomical.
Any guesses people as to when they will finally be out. I would guess possibly March.
Hi, I have a tenant renting for the last two years. For 1 year they paid rent on time or say before time, but for the last 1 year they are struggling hard in paying rent, always late, I have been very nice so far,never charged any late fee, kept trying my best to cope with them.
Now it's getting worse, there two month rent is due, seems like they can not afford,so they should try cheaper house.
my concern is should I give them eviction (1 month) notice now, will it make the situation worse..like they stop paying rent at all, or should I wait until rent becomes current again .
I heard if they don't pay rent, then I may have to go to court, since they have two kids court can't evict them, also it may make tenant angry and they may stop paying entirely and may start damaging property also.
What is best way to handle this situation....Thanks
You cannot survive in this business if you are afraid to go to court for evictions. It's part of the game so you are going to need to accept that or hire a property manager to handle it for you. You need to begin the eviction process immediately.
In the future you want to be firm on rent collection standards. Set an exact date that you'll begin the eviction process if rent isn't paid & adhere to it under all circumstances......
You lost your job? Tough. Eviction.
Car broke down? Tough. Eviction.
Grandma is sick? Tough. Eviction.
Kids are sick? Tough. Eviction.
You will find that many tenants come up with the money when they are given no other option. They are choosing not to pay you because you are letting it happen. When they realize that they will loose the roof over their head the rent suddenly moves ahead of other bills such as car, groceries, cell phone, weed, beer, cigarettes, lottery, new purse etc.....The ones that really can't come up with the money, well tough. Eviction. Then replace them with tenants who can pay. It's not a warm & fuzzy business. You've got to be strong & disciplined to survive.
That particular fact has absolutely no bearing on your situation. It is simply not relevant.
I noticed you mentioned not being able to evict due to the children and this simply in not the case. Evictions have nothing to do with family structure.
Investor · Jersey City, NJ · Member since 2015 · 304 posts · 48 votes
7y
Thanks all, tenant promised to pay dec, jan rent by feb 7 and then remaining Feb Month in another 1 week. I am learning ,it's my first case...Let's see how it goes,will keep u guys updated.
Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Raj G. I would file for eviction and then when they are unable to pay on Feb 7th you will be a month ahead. I'd bet the 7th comes and goes with your checking account balance not improving. Hope I'm wrong.
Rental Property Investor · Akron, OH · Member since 2018 · 30 posts · 32 votes
7y
If your time machine is working you should go back and make sure to always charge a late fee. If there's no penalty for late payment you'll be the last bill paid. I charge two. One if they're 3 days late and a second late fee if there's any outstanding balance on the 15th of the month. And I don't wait around to post a 3 day notice. Since you're already at the end of a month I would wait and post a new 3 day for both December and January's unpaid rent. This allows you to accept rent for December and still be able to evict in case they come up with something before a court date. You can always go through the eviction process and then opt not to evict if they come up with all past due funds by the set out date. Not sure about New Jersey but in Ohio I can hold off on filing a writ for up to 30 days in case they fail to come up with rent for the following month. It's good insurance. If you're set on "helping" them call around to area charities. The salvation army has a program that pays all past due rents plus 50% of future rent for 3 months but there has to be a filed eviction for the tenant to receive the funds. Catholic charities and St Vincent DePaul will each pay $250 flat to a landlord if the tenant has been given a 3 day notice and hasn't accepted assistance in the past 6 months.
North Liberty, IA · Member since 2017 · 3 posts · 10 votes
7y
I have different types of properties and different tenants. In general, I am requesting an autopay with every new lease I sign and most of the tenants have no problems with that. However, I am working with some of my tenants on alternative pay schedules, allowing them to pay every other week. I spelled out late fees right in the agreement, included a statement that the late fee will be applied automatically and without a notice, if the second half of the payment is not received by 15th of the month. I also have a four-plex that I am renting to tenants in transition, who get rent assistance from the county or welfare organizations. Those rents are never on time and I have to issue a notice of default every single month for them to catch up. Much more work, but the cash flow on that property totally worth it.
Personally I am willing to work with my tenants and quite flexible as long as I see that they are not taking advantage of my flexibility. One thing I would like to note: I have taken the abusers to court for non-payment of rent, and chances to recover those rents are slim to none. Even if you win the case, it is an additional expense, tons of headache, and always does not worth the effort.
If I had a situation like yours, I would talk to my tenants first and if they are confident this is a temporary hardship, I would offer to work out a payment plan they can afford and have them catch up on any deficiencies over time. But if I get a feeling this is not going to change, I would hand them a notice to cure the default and if they don't, begin the eviction process per your state regulations.
Thanks all, tenant promised to pay dec, jan rent by feb 7 and then remaining Feb Month in another 1 week. I am learning ,it's my first case...Let's see how it goes,will keep u guys updated.
Woa.....abort abort abort ABORT!
Do not wait until you don't receive your rent on Feb 7th to begin the eviction process. You need to begin the eviction process to toss out this dirt bag tenant TODAY! The tenant is just stringing you along to get another 5 weeks of free housing from you. She isn't catching up my man. She's got you hook, line & sinker. For the love of your money Raj STOP THIS MADNESS RIGHT NOW! I forbid you to treat your money this way.
Investor · Long Beach, CA · Member since 2012 · 313 posts · 190 votes
7y
DUDE...January rent in February??? And then February rent a week later...and they've been struggling so far? Do you SERIOUSLY expect to get any money? Bro i have a 5 day grace period...Im gonna blow up their phone and email on the 6th, and by the 9th day at the latest I've given them a three day notice.
Did I not say it would possibly be March. I believe I did.
With tenant time extensions through the court he is looking at losing minimum 4 months rent, probably 6 or more, by the time this is all over.
Another landlord goes down in flames.
@James Wise let it go, your only going to hurt yourself.
You guys are all way too lax. Rent is due on the 1st, late at midnight, notice on the 2nd. This whole idea of a grace period is ridicules. The grace period applies to a late fee, you still issue the pay or quit on the 2nd. You are way behind the 8 ball waiting for 3-5 days for no reason. Tick Toc time is money start the process on the 2nd as soon as rent is late.
When I first started out I gave my tenants time to pay it back. They did not fulfill that promise. In the end I lost 5 months worth of rent because the process takes so long. Your in Hudson county. They are tenant friendly.
Filing for an eviction can take you another month to get the date and another month or two for the eviction even if you win.
NJ requires mediation before you see the judge. During mediation at court you can work out a payment plan for them. If they do not abide by the agreement then you can evict them.
They're still allowed to file for another extension to stay even if they do not have the money which can take another month.
This is the quickest, easiest & least painful way for you to deal with it.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
7y
i beleive Raj needs to find a PM to help him thru this situation.
I like to work with tenants if something happens (luckily rarely) but I *would* expect the tenant to make payments of some sort and even I would not allow a tenant to not pay rent for2- 3 months.
I am going to agree with others that you need to be proactive here and get your ducks in a row so you can protect yourself
Rental Property Investor · Long Island, NY · Member since 2015 · 490 posts · 301 votes
7y
@Raj G. Being an investor in Hudson County myself I can tell you that you should have filed for eviction a month ago. It’ll be at least a month before you see a judge
Real Estate Investor · Sacramento, CA · Member since 2010 · 292 posts · 103 votes
7y
Why are you giving them more than 30 days to pay all of what they owe ? If they can't pay it all immediately, how about part? Can they pay $100 or $200 within 24-48 hours? If they are so pathetically "broke" they can't even make a partial payment, start eviction immediately! Never fall for the "I'll have all your rent by some date 20 days or more into the future." You will invariably have to evict if they fail, but even if they move out on their own, you'll still feel like an idiot for accepting their promise. Don't do it!!