Tenant won’t pay last month’s rent. Is eviction process worth it?

[Ashley Cao]

Hello BP Nation!

One of the inherited tenants (month to month lease) in my first investment property was given notice to vacate as we are looking to do some rehab work on the property. It is now the last month and tenant says they can not afford to pay it since they will need to put a deposit and first months rent for their next property. We have served the late notice, but nothing. 

I know I should be looking at this through the lens of a business, but I also want to be as compassionate as possible. 

Is it worth starting the eviction process now that we are in the middle of the month?

What other solutions are there?

[Russ B.]

The risk here is that you'll get into next month, they'll still be there, and still no rent. Then, it'll take at least another month to get rid of em. Most leases specify that the deposit can't be used as the last month for this reason, and because you'd be left with nothing to cover any damages. 

I'd tell em that you need to do it by the book. You'll have their deposit ready to go on move out day (assuming they haven't destroyed anything), but if they don't pay, you'll have to initiate eviction proceedings.. which will make it much harder to get in anywhere else.