Offering to Move Struggling Tenant to Cheaper House

[Chris Lynn]

I have a tenant that has been in place for a year and a half.  They have never missed a payment, but circumstances have changed in the past few months and I'm know that it's getting harder for them to pay rent.  They keep the house in great condition and have not been a problem at all.  I have another house that I'm about ready to put on the market that is nice, but in a less nice neighborhood.  I told them about it a month ago asking if they knew of anyone that might be interested in renting it.  They didn't take the bait.  I'm considering being blunt and offering to transfer them to that house, which would be have materially cheaper rent.  Curious if anyone has done this before and how it worked out.  Thanks for any feedback. 

[Patricia Steiner]

I've never been in your position but I have a client who did something similar but for a different reason.  Her long time tenant rented a townhouse in a highly sought-after area where rents increase substantially year-over-year. With rents soaring even higher, she wanted to raise the rent more than before which she knew would be financially unfeasible for him.  So she basically leveled with him, offered him another townhouse nearby - but not in a comparable area - for less rent.  And, it didn't go well. The tenant took it as a slight that she somehow saw him more suitable for "that other neighborhood" and resented that she thought she could make a financial decision for him.  When it was all said and quite done, I felt that a line was crossed with the tenant. Although she meant well, one person's "act of kindness" can easily be seen as "you're in my business."  

My recommendation would be to pose it as an opportunity:  "as you know, I have another house that is going on the market for $x rent and before I start looking for a tenant, I wanted to give you first opportunity at it."  It gives them "an opportunity" rather than points out a financial situation that could very well be a temporary "life hurdle."  

Good luck with it...and you're a good guy for trying to help.