Evict now or wait?

Question

I got this message from my PM today:

"The resident in unit 3 has not paid his monthly rent and owes $50 for last month.  I just spoke with him on the phone and he said that a couple years back someone had used his social security number to work under.  He has no idea who it was.  He said that the IRS took his income, which is from Social Security for back taxes.  Since his source of income is Social Security Disability if he works they will cut it off.  So as of right now I do not know if it has been stopped because he shows income earned or if the IRS actually took his funds. 
 
He said that he does not want to lose his place of residency and would like to make arrangements to pay his balance.  I asked him if he will be receiving his funds next month and he said hopefully.  I informed him, in situations like this we are able to work with most residents however we need documentation, verifiable proof that the situation he discussed actually occurred and that his Social Security will be reinstated.  I told him that he needs to go down to the Social Security Department Monday and request this documentation.
 
At this time it is completely up to you how you would like to proceed.  He has been served with a 3 day notice to pay rent or quit.  We can proceed with an eviction at anytime.  Would you like to wait and see if he is able to provide the appropriate documentation?  He should be able to get it no later than Wednesday of next week.  Please let me know your thoughts and how you would like to proceed."

The tenant has been in place for about 5 months and has been paying on time up to this point. He also keeps the place clean and hasn't really been an issue until now.

Should I give him some time or file eviction immediately? 
The property is in California.

Jon Holdman · Answer

I have worked with tenants when they had some problem.  However, their problem is ultimately not my problem.  I'm providing a product and expect to be paid.  If you can't pay, you don't get the product.

Today is the 11th.  Rent for me is due on the fourth, late on the fifth.  If you're going to be late, I want to know about it before the fourth.  I want a plan in place by the fourth for how its going to be paid.  I want the rent and ALL late fees paid by about the 15th at the very latest.  Being $50 behind on April rent would have been a problem a month ago.  Still being late on that and, apparently, having no way to pay May rent even now would be a huge problem.  I would not be waiting for documentation on the 11th.  I would already have that doc, if it exists, and I'd be expecting a payment very soon.

This part really bothers me:  "Since his source of income is Social Security Disability if he works they will cut it off."  So, he could work, but chooses not to so he can continue living on the dole?  Am I reading that correctly?  Tough noogies.  If you can work you you're not really disabled, and you?  Get a job and pay your bills.

I would want to know when am I going to get my money for April and May?  That better be in the next week or so.  And, how are you going to pay June rent.  If these answers are solid, I'd give it a week (maybe, no longer) to get April and May rent.  Not documentation.  Rent.  If the answer are "I'm trying to sort it out" then start eviction.  You have a lengthy eviction process in front of you.  The sooner you start the sooner it ends.  If the money suddenly appears, and you choose to keep this tenant, you can stop the process.

Tod R. · Answer

Hey Andrew Jones.  How strong is the leasing market?  I would take this into consideration as well before evicting.

Account Closed · Answer

Andrew:  I'm pleased to hear that you have a PM who already served a 3-day.  That's proactive for our area. :)  But what's the story with the $50 from last month?  Were you aware of that?   I can't see how your PM is saying the tenant's been on time till now when he hasn't.

How much is the SSDI income?  If it's reinstated, and he receives it at the end of next month, will it be enough for him to pay this month and next month (and the remainder of last month) when and if he gets it?

If you wait for the reinstatement verification til Wed and/or if you find out that the income just won't be enough to let him catch up, I'd try to arrange getting the tenant to vacate without an eviction.  If he has anyplace to go, and this is often the issue, I'd offer to give him some cash to move instantly.  I've done it and it's worked well about half the time, but it really depends on a lot of resource issues (family/friends, car, ability to get storage, physical ability to move, etc.)

I'd say your numbers for costs for evicting and lost income are about right, but I disagree that you have to automatically sign up for 2 1/2 months lost rent and concessions.  Really depends on the tenant's motivation and resources.

Jon Holdman · Answer

What happens if you don't start eviction and one month from now you still don't have the April, May or now June rent? You've just lost another month's rent.  And you still have to incurr all these costs.

Again, you or your PM needs to play hardball with the tenant.  You need some money SOON.  Not excuses, not documentation.  Money.  No money, and you start the ball rolling on kicking them out.  That may well motivate them to come up with the money.

This story may be true or it may be total poppycock.  If you just say "ok, fine, figure out when you can pay and let us know", the tenant has very little motivation to do anything about it.

Arthur Garcia · Answer

I would wait until Wed. if you don't get the info you need by then, start the process.  The last thing you want is a guy trashing the unit when you could have just waited a week, IMO.

AG

Account Closed · Answer

Hey Nathan I've never heard of a notice fee, and I'm not sure if that's even legal where I am... Rent is due on 1 and late on the 2nd.. Can't charge a late fee until the 5th.. But they're late on the 2nd, so thats when I drop off my ten day notice... That way I can evict as soon as possible if they're not going to pay.. I had some tenants keep running late and waiting for naive agencies to pay their rent.. I ended up not taking that money anymore and evicted them....

Account Closed · Answer

unfortuntately, i predicted this as i read your thread....best policy i have is to go ahead and evict..and tell tenant, i'm happy to work with you, provided you pay all debts, late fees and court costs before court date...(even after court date, they have 10 days before i can file a writ to have sherriff lock out, so even then, you could technically still work with them)....that gives them enough time to get their butt in gear or go to some agency that helps them with rent...it seems my tenants love getting 10 day  notices on their doors bc they take them to agencies that pay their rent....

Account Closed · Answer

Andrew: thanks for the update.  You say you worked something out with the SS payee?  Does that mean the tenant was working under someone else's SSN? Seen that before. There's a saying that RE agents have in our area:  1 year of experience in Kern County is equal to ten years elsewhere.  I think you're on the fast track to being a heavily seasoned landlord.

Nathan Emmert · Answer

Do you enforce a notice fee?

I have a few tenants that seem to be similar... takes those notices to the local ward and get a bishop to write them a rent check so they don't get booted.  I need to start enforcing my notice fee... I'm they are going to be a pain in the butt, I should be compensated!

Andrew Jones · Answer

Another update:

Tenant was unable to pay even after my PM spoke with his SS Payee and worked out a payment plan. So I did end up filling eviction in the second week of June using a 3rd Party for $615. I am currently awaiting the lockout date.

Evict now or wait?

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