Tenants from 32 Unit apartment in Houston Won’t Pay Rent

7 Replies

As much as I hate to admit it, I expect to see more and more of this happening across America.

https://www.reddit.com/r/realestateinvesting/comments/fotvwa/please_help_my_tenants_organized_and_are_saying/

I question that reddit thread.  I also don't believe most tenants won't look out for #1, and they also don't want to be evicted after the reprieve and are smart enough to know that could happen.

If it was to happen to me as a landlord, I'd simply write to each tenant and explain the reality in a nice, factual way, of what will happen if they, as an individual, don't pay their rent.

We received a letter in my senior apartment complex just this morning explaining that we are responsible to keep paying rent, that if we can't due to the coronavirus and can document that the inability to pay rent is directly related, to contact management to work out a payment plan.  It also includes a couple of resources such as charities who have benefits we could apply to if help paying the rent is needed.  It was written in a nice, friendly, but factual and firm way.  

Originally posted by @Pete Abilla :

As much as I hate to admit it, I expect to see more and more of this happening across America.

https://www.reddit.com/r/realestateinvesting/comments/fotvwa/please_help_my_tenants_organized_and_are_saying/

If they're not paying, there is no downside to aggressively doing everything in your power to evict them. Smash all of their credits, rental history, and sending them all to collections.  That's not mean.  These tenants are organizing to STEAL from you.  It's ZERO difference than if they all got together to go into your house and steal the $ from your safe.  How would you respond to that?   These tenants don't give a s*** about the owners own bills, or the family he has to feed, or staff he has to pay, or taxes he'll have due.

Nope.  No way.  If I were that guy I'd start HEAVILY marketing the property for lease RIGHT NOW to people with $0 move in and 25% lower rent.  Let the existing tenants know you have a waive of people ready to take their place.  I'd also do EVERYTHING I could do (legally) to get them out.  Lock them out (you have to then let them in later).  Contractual liens, etc. 

Harsh tone aside -- we *ARE* working with tenants that are legitimately hurting right now.  We'll treat them on a case by case basis based on how long they've been with us, what they can pay now, their deposits which might be able to be used.  If we can move them to a less expensive property, to even outright pausing their payments due if they agree that doesn't make it go away (they can pay $x/month more later).  But while I'm happy to work with tenants like that -- if they all got together (in good times or bad) to try to steal from me? I'd do everything I could legally to fight them and any help I'd normally offer would be off the table. 

I don't use reddit much but how is that an investor focused subreddit?  Every comment was bashing the owner for being a leech and parasite?  I assume that post got advertised to more socialist targeted subs and they all jumped into that investor page to comment?

But then again the first comment from the mod says they're locking the thread and there have been lots of helpful comments.  Uh, really?  Not that I saw.  It would be interesting to view those commentors profiles and see what other subs they frequent?  I bet they all came from one of a few places.