Landlord from Addison, IL · Member since 2017 · 55 posts · 5 votes
Need advice from pro-
We finally decided to not extend lease with our inherited tenants. They got their note in April 1st and we gave them 60 days (according to Illinois law) to move out of the building. The next what they did is not payed us their rent that should be paid on 10th of each month. Of course, we remind them about it, and they keep quiet, which is pretty normal with them. Then will be another month of May, that probably they won't pay until they hit 1 of June, hopefully they peacefully move out (which I doubt).
Are there any legal tricks to get the rent back or we should just take it us our loss and move on?
We have 7 properties that are 100% room for rent. It's so much more money than renting the whole house to one family.
In any case, send them a letter that says you will be taking them to court for the unpaid rent. Verbally (not on the notice letter) let them know that even if you never collect on the money, the court judgement you are likely to get will follow them forever. It will appear on their credit or background checks. I could go into this in detail, but instead I'll tell you a quick story: One of my tenants stopped paying rent and overstayed. We evicted them through the court and Sheriff. Shortly thereafter, I received a call from a prospective employer of that tenant.
They saw "Eviction" show up on their background check. They asked me what happened. I instructed them to send me a written release from my former tenant, which they had already received as part of him filling out his job application. I told them everything. The manager was grateful that he didn't hire someone with such lack of character, ethics, and respect. This former tenant had no idea that what he had done in his past is haunting the daylights out of him. Once he realizes it, he may attempt to make things right. If he does, I'm happy to update the story I tell to his prospective employers who call me.
If your tenant thinks they can get away with not paying rent, they might. You have to make them aware of the other potential consequences they have no clue about. These are the types of things that motivate them to pay.
A final tip: When I give notice about intent not to continue my lease with them, I always do so immediately after they've finally paid rent. This way, once the process starts, there's less time behind me in which they have already paid rent. In other words, don't give them notice right before rent is due. Many people just won't pay or they will say "use the security deposit" even though the lease says they're not allowed to. At that point, there's not much you can do about that.
Send them to the collections if they will be late next month. Send them a warning that you will have to involve the collection agency if they rent will not be paid or if it is late next month.
We finally decided to not extend lease with our inherited tenants. They got their note in April 1st and we gave them 60 days (according to Illinois law) to move out of the building. The next what they did is not payed us their rent that should be paid on 10th of each month. Of course, we remind them about it, and they keep quiet, which is pretty normal with them. Then will be another month of May, that probably they won't pay until they hit 1 of June, hopefully they peacefully move out (which I doubt).
Are there any legal tricks to get the rent back or we should just take it us our loss and move on?
Why did you give them 60 days notice? Statute in Illinois is 30 days prior to the start of the next period. Your notice needs to be written exactly according to the law so be sure it matches, otherwise the judge will throw out your eviction case any you'll have to start over with proper notice.
The vast majority of my class C tenants don't pay rent once they get their 30 day notice. With the arduous eviction process here, its not worth it to issue a 5 day notice and file on them for reason of nonpayment. Just keep pushing them that they need to move out by the date in the notice. If its not a high-end rental they likely need that month of unpaid rent as the security deposit on where they are going to move.
Why not give them notice? If they failed to pay rent, they are in violation of their lease.
Because she's looking at 2+ months of court plus sheriff time for an eviction, $1500 retainer + court costs, and no likelihood of recovering those costs. Path of least resistance is to push the tenant to move out by the notice date. The goal isn't to be right or prove a point, its to get the unit vacated for as little $ as possible as fast as possible, much like when using cash-for-keys.
No, we don't evict them. We do not renewal lease with them, we want them move out. Since they got a letter of not renewal they didn't pay us their rent. I know, we are still new landlords and this is a new situation of course.
I read somewhere that month-to-month you give 30 days notice to move out and annual lease is 60 days notice. Any way, we will be smarter next time.
Collection agency is a good idea. Thank you! We are going to send them warning letter.
We have 7 properties that are 100% room for rent. It's so much more money than renting the whole house to one family.
In any case, send them a letter that says you will be taking them to court for the unpaid rent. Verbally (not on the notice letter) let them know that even if you never collect on the money, the court judgement you are likely to get will follow them forever. It will appear on their credit or background checks. I could go into this in detail, but instead I'll tell you a quick story: One of my tenants stopped paying rent and overstayed. We evicted them through the court and Sheriff. Shortly thereafter, I received a call from a prospective employer of that tenant.
They saw "Eviction" show up on their background check. They asked me what happened. I instructed them to send me a written release from my former tenant, which they had already received as part of him filling out his job application. I told them everything. The manager was grateful that he didn't hire someone with such lack of character, ethics, and respect. This former tenant had no idea that what he had done in his past is haunting the daylights out of him. Once he realizes it, he may attempt to make things right. If he does, I'm happy to update the story I tell to his prospective employers who call me.
If your tenant thinks they can get away with not paying rent, they might. You have to make them aware of the other potential consequences they have no clue about. These are the types of things that motivate them to pay.
A final tip: When I give notice about intent not to continue my lease with them, I always do so immediately after they've finally paid rent. This way, once the process starts, there's less time behind me in which they have already paid rent. In other words, don't give them notice right before rent is due. Many people just won't pay or they will say "use the security deposit" even though the lease says they're not allowed to. At that point, there's not much you can do about that.
thank you Ebony, thanks for that detail explanation. Just another lesson learnt, yes, we know we made couple of mistakes here and there, and of course bigger pocket posters came with help. By the way, we started our landlording business with 4 units apartments building and I am hungry for more. thank you!
If you miss the 30 day notice you will need to extend to the following month. For example, it’s March 3rd and you send 30 day notice. Lease ends on April 1st. You missed the 30 day window. It will extend to the following month. Welcome to Illinois. It doesn’t mean the tenant won’t honor it, but if they challenge you, you will lose. This unfortunately is all trial and error and it’s subjective to the judge. If I’m not renewing I always send the non-renewel at least 45 days in advance. @Matthew Olszak is correct regarding 30 days. Remember Illinois law is 30 days notice for month to month and non-renewel of lease.
You always serve legal notice as soon as a tenant is late on rent. This is to mitigate your risk and is well worth the small additional investment. If you do not serve notice, the tenant may not leave at the end, then you have lost two more months of rent than you needed to AND you still have to start the eviction process.
Why not give them notice? If they failed to pay rent, they are in violation of their lease.
Because she's looking at 2+ months of court plus sheriff time for an eviction, $1500 retainer + court costs, and no likelihood of recovering those costs. Path of least resistance is to push the tenant to move out by the notice date. The goal isn't to be right or prove a point, its to get the unit vacated for as little $ as possible as fast as possible, much like when using cash-for-keys.
I wouldn't say no likelihood of recovering costs. If they get a judgement on the tenants credit report, it may be collectible. I have seen cases where tenants intend to buy a home and they are forced to clean up their credit report, so landlords can get checks years later.
If the tenant has no intent of paying further rent and no intent of leaving, then serving notice as soon as possible is critical. The majority of people will leave when faced with eviction. Only a tiny percentage will refuse and show up in court.
It is not about proving a point, it is about following a standard business practice to legally regain rights to your property.
our tenant called us about 10 days ago and informed us that they are going to use their deposit for next month rent, and they are going to move out of our building at the end of the April, she also apologized us for giving us short note for her plans. So, hoping that all turns well for us, we already found a new tenant who already paid deposit and first month rent and will be ready to move in in first week of May. Time is ticking and we have just 6 days left to see what will happen. If you have any piece of advise for me, how to make sure it's smooth transition, please feel free to drop some words.
Congrats on dodging that bullet! I used to have this same problem, but now I collect first/last/security deposit all up front. It dramatically reduces the volume of applicants I get, but not the quality.