Moratorium extension in Wa and tenant says has no money or plan

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Moratorium extension in Wa and tenant says has no money or plan

Patricia Vildozo
Brier, WA · Member since 2013 · 29 posts · 4 votes

Hello community,

A while ago I decided to rent my primary home located in Wa, and rent another house in a better school district. I divided that house into two units; the main house ( unit 1) and a separate entry bedroom w/ bath ( unit 2) and since then I had great tenants. Everything was fine until the Corona Virus crisis hit us all , the tenants from the bigger unit payed April’s rent on time and said that they are economically stable . However, the tenant from the second unit who moved on November of last year told us that he can’t pay. We understand that many people is going through really hard times , including us since I’m afraid my husband job is also on jeopardy, thus we offered different options to pay this month.

First, we gave him a discount of 20 % if he payed on time.

Second, a payment plan so he pays 20% on time , and the rest over two months .

And third, we offered to break the lease without penalty and apply the last months rent for the month of April and just let him go without any penalty.

Since then he has ghosted us until two days ago letting us know that he still doesn’t have money. Also, he hasn’t chose any of the options offered.

Our next step was to send him a 30 day notice to vacate this 18 of April which was when the moratorium was going to end. However, now the governor extended the moratorium until early June.

We feel that we gave him options, and we are afraid that he won’t be able to pay the money owed at the end of the moratorium either since all the balance is going to accrue and we might end up going to court or collections which we don’t want to do.

I would really appreciate some advice...

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    This is a common mistake. You're under the impression your renter will appreciate your kindness and try to do the right thing. That's incorrect more often than not.

    When push comes to shove, your tenant could care less about you, your family, your mortgage, or your desire to build wealth. They are looking out for themselves, period.

    Any time you try to communicate with your tenant and require a response, you should include a deadline. If you ask your tenant if they want to renew the lease, tell them you need a response no later than [DATE] or you will consider the lease terminating and start marketing for a new renter. If you offer your tenant a discount or a payment plan, tell them you need the response within seven days or you will revert back to the original terms of the lease and expect full payment on time.

    He knows the rent is late. Sending additional reminders, nagging, threatening, cajoling, or even offering discounts usually only serves to scare them or make them mad. They're going to shut down communication, hunker down, and hope nothing happens. He's probably low income with bad credit so there's really nothing you can do to hurt them.

    I would send a letter that simply says, "We offered you assistance but you've refused to respond. We are rescinding that offer and expect rent to be paid per your agreement. If you are unable to pay, we expect you to give us notice of when you intend to vacate so we can terminate the lease and look for a new renter."

    That's it. Don't mention the moratorium on evictions, offer a payment plan or cash for keys, etc. Just because the state doesn't allow evictions doesn't mean the debt is forgiven or forgotten; it's just pushed down the road.

    If the tenant still hasn't paid by May 1st, I would send another letter of similar vein reminding them of the amount due and that you intend to collect or require them to leave. 

    If they don't leave and don't pay, be prepared to start the eviction process the very moment the law allows.

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  • Damaso Bautista
    Rental Property Investor · Hawthorne, CA · Member since 2018 · 655 posts · 900 votes
    6y

    @Patricia Vildozo

    You need to document the case as you would during any other time.  The moratorium should have no effect on your process.  So think to yourself what would I do if my tenant stopped paying rent.  Then go through that process.  Give notices required by law, document service, get and attorney to file or file for eviction yourself.  Then it is in the courts hands.  What the court does is on them.  The only thing you can do is document what occurred the best that you can so that it can be explained in a court hearing later on.

    I hope this helps.  Good Luck!!!

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