Unpaid rent from vacating tenants

[Greg Mayer]

Hello BP community,

My wife and I purchased a duplex in a B class area about 1.5 yrs ago and inherited 3 adult tenants in one of the two units. This was my 1st property.

I live in one of the duplex units (my wife lives in another state) right after purchasing the duplex. 

My tenants would pay rent late almost every month with late fees. Eventually one of the 3 adults became unemployed. The rent couldn't get paid. I gave them a pay-or-vacate notice, they decided to move out. It looks like they are moving out at the end of the month (we'll see).

The tenants are telling me they would like to pay the remaining rent, when they are able to, after they move out.

The letter I mentioned above was a pay OR vacate letter, not a pay AND vacate letter. But if they want to pay unpaid rent ... I don't see why I would say no. 

I was looking into promissory notes as a way to collect that unpaid rent, but don't know a lot about them.

What do other landlords out there do with unpaid rent from tenants who vacate before the pay-or-vacate term is up? 

[Nathan Gesner]

@Greg Mayer tenants will often say they intend to pay everything owed but it's extremely rare that they make good on it. I'm assuming they owe more than the deposit can handle.

After they move out, use the deposit to cover cleaning and repairs first. Then apply it towards unpaid utilities or other expenses, with rent being the very last thing you apply it towards. Contact them in writing and demand payment of any unpaid balance. Assign them a deadline of 30 days to make good. If they ask for more time, give them up to 90 days but develop a written payment plan that includes everyone's signature as proof of agreement. If they miss a deadline, take them to Small Claims. That may prompt them to pay. If not, get the judgment and send them to collections.