Tenant not paying rent during COVID in NJ

Tenant not paying rent during COVID in NJ

Neil NagariaPro Member
Member since 2018 · 8 posts · 1 vote

Hello all

I have multiple single family properties in NJ. During these difficult times I have not pressed anyone for there rents, fortunately I’ve been paid on time by all of them except one. I believe her and her husband are getting unemployment and have received stimulus checks for the family however she’s denying it. She seems to want to work the system and have other agencies pay her rent. This has has been going on since April. She got any agency to pay $1000 of her $1800 rent.  And hasn’t paid anything for may or June. Ive reached out to her multiple times to try and work things out with her. Even sent her a certified letter with all attempted dates of communication. Her lease is scheduled to expire on July 31st. My contract states for a 30 day notice, but I’m planning to send a certified letter 45 days prior. NJ state laws are tough, and although you can’t just do a non-renewal, you can if they haven’t paid any rent. I’m not sure if the recent COVID rules apply to this,as this is technically not an eviction, which isn’t allowed at the current time based in my understanding.  I have a deposit of $2700, which she has already burned through. On vacating the premises, is it possible to take her to court for repairs/ damage?  I’d appreciate any suggestions or comments anyone else may have.
   

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Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
6y

Don't operate on fear.  Don't what-if yourself.  Operate like you OWN THE PLACE - and you do!  With the ban on evictions just days away from being lifted, those tenants who "played" the system are about to get a wake-up call.

Think NO.  NO.  No more negotiating. No more trying to accommodate.  Just "your lease will NOT be renewed.  I will be at your unit at 4:00 p.m. with a third party to complete the final walk-through."  That "third party" usually is enough to realize that the gig is up.

Send the letter with proof of delivery required and by certified mail with signature required.  Then at 30 days, also email them a termination letter.  Leave them no room to claim they didn't receive notice. 

And, not only are you entitled to all damages and unpaid rent, be sure to report them to the credit bureau and assign the amount due to a collection agency.  Your chances of collection increase greatly when they can't buy that next car, get that next credit card, etc.

You're almost done with them! Rock on...

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  • Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    Last question first:  yes, you may sue for damages after the tenant has vacated.

    The rest of your questions:  you're in NJ--better lawyer up.

  • Neil NagariaPro Member
    OP
    Member since 2018 · 8 posts · 1 vote
    6y

    I’m trying to avoid it if possible.  Any ideas of approximately how much lawyer fees would run?

  • Investor · Colonial Heights, VA · Member since 2015 · 78 posts · 53 votes
    6y

    @Neil Nagaria Another option is to offer them Cash for Keys to get them to leave and maybe 1-2 month's rent in Cash will be enough to entice your tenant to leave. The reason I am suggesting this is the last thing you want is for the eviction moratorium to get extended until 2021 and you losing out out of rental income for the rest of the year. 

  • Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    6y

    Don't operate on fear.  Don't what-if yourself.  Operate like you OWN THE PLACE - and you do!  With the ban on evictions just days away from being lifted, those tenants who "played" the system are about to get a wake-up call.

    Think NO.  NO.  No more negotiating. No more trying to accommodate.  Just "your lease will NOT be renewed.  I will be at your unit at 4:00 p.m. with a third party to complete the final walk-through."  That "third party" usually is enough to realize that the gig is up.

    Send the letter with proof of delivery required and by certified mail with signature required.  Then at 30 days, also email them a termination letter.  Leave them no room to claim they didn't receive notice. 

    And, not only are you entitled to all damages and unpaid rent, be sure to report them to the credit bureau and assign the amount due to a collection agency.  Your chances of collection increase greatly when they can't buy that next car, get that next credit card, etc.

    You're almost done with them! Rock on...

  • Neil NagariaPro Member
    OP
    Member since 2018 · 8 posts · 1 vote
    6y

    @Sudhanshu Singha is it really an eviction if the lease is up?

  • Neil NagariaPro Member
    OP
    Member since 2018 · 8 posts · 1 vote
    6y

    @Patricia Steinerthank you for the motivation!

  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    6y

    In NJ, with a tenant like that, as @Marc Winter said, lawyer up now and prevent what's coming which is 100 percent a holdover tenant, past lease-end, with no payments. Serve the notice, follow the procedures, but still be cordial with the tenant so they don't wreck the place. The evictions ban will end soon so be ready to get them out for their lease-end. Don't skimp on attorneys or try to DIY it, it will just cost you more time, which is more money, down the line. Cash for keys does not work in a situation like this unless they agree and you only give the cash after they have left or you just pay to move them as the cash.

  • Investor · Roebling, NJ · Member since 2016 · 55 posts · 39 votes
    6y

    @Neil Nagaria I am in a similar situation. I was told $400 to file the eviction by a south jersey attorney. but I was also told the courts are going to allow the tenant to stay 2 months after the case. so let's say case goes in front of a judge in July, and you win.. the courts will not remove this non paying tenant till September. this applies to burlington county but I assume its statewide.

  • Neil NagariaPro Member
    OP
    Member since 2018 · 8 posts · 1 vote
    6y

    @Jim VanhornSounds reasonable. I guess I’ll utilize attorneys

  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    6y

    I would search for an attorney that is up to date on the laws and courts in your area.

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