Res owns MH but is $7K behind in lot rent? I'm new PM-What next?

[Kimberly Brooks]

I have just become the New Property Manager at a Mobile Home Park in Alabama. I am from Destin, Florida and there is a "BIG" difference in Condos and Mobile Homes.  My first task is clean up (already started) and collecting past due lot rent as most of the mobile homes are owned by the resident. I have two that are extremely behind (1 $7K and the other is $3K). If anyone has had this situation before, please share with me where I can find information on what to do next.

Thanks

[Tyson Cross]

First, check your landlord tenant laws in AL. Make sure you know what is permissible and the timelines in which you have to operate for notices, eviction process etc. Have you had a conversation with the owner regarding the past history with these particular tenants? Have they posted late notices or filed any notices to pay or quit? Typically when tenants get that far behind, they almost never end up paying it off. That is a lot of money to be in the hole and frankly, its the rare case where a tenant will agree to some payment plan and stick to it. I believe there are a few options. 1. You end up wiping this past rent away and start new. Make it clear the tenant has one and only chance. I've seen this to be the case when a new owner steps into a property with major bad debt. 2. You put a payment plan in place with this tenant and they agree to pay and let them stay. But, again first time they miss you have to take action. 3. You file notices to pay or quit and if they don't pay, start the eviction process. I hate to say it but these people probably will most likely end up not paying again at some point. Once they're allowed to get away with it once, they'll likely try again and again until they get evicted. Depending on the owner's history with these tenants will likely the scenario. If I was a new owner, I would probably give them a clean slate and then one chance to stay. If the owner's had the property a while it's partially their fault for letting the past due rent build up this far. Again, make sure you understand the state laws as it pertains to notice filing and the eviction process. I hope that helps!