Rental Property Investor · Bay Area · Member since 2014 · 49 posts · 5 votes
One of my tenant has owed 3 months of rent now. They paid some to their arrears when they have money but It’s so far behind, even when they get their job back (blue collar) they wont be able to pay their arrears in full anytime soon, esp with Covid is spiking again.
What are my options here? My PM suggested to offer them a 2 months period to find another place to move out with their written consent that they cant afford the rent and need to break the lease. Is that a reasonable approach compared to eviction? Thanks
Suduk, I'm sorry to hear about your situation... I'm undergoing the same problem here in Spokane, Washington. I've been in touch with my lawyer and some property managers in my area and they are suggesting that I offer a repayment plan (formally, send in the mail and document/make copies) and then they will either accept and pay as needed or not. If not, when the eviction moratorium lifts in your state (mine is August 1st) you can begin to evict. Offering cash for keys is definitely a good approach if your moratorium won't be for a few months.
Good luck with your situation. Please let us know how it goes.
Suduk, I'm sorry to hear about your situation... I'm undergoing the same problem here in Spokane, Washington. I've been in touch with my lawyer and some property managers in my area and they are suggesting that I offer a repayment plan (formally, send in the mail and document/make copies) and then they will either accept and pay as needed or not. If not, when the eviction moratorium lifts in your state (mine is August 1st) you can begin to evict. Offering cash for keys is definitely a good approach if your moratorium won't be for a few months.
Good luck with your situation. Please let us know how it goes.
There is an exception in WA now if you declare you want to move into the house or sell the house. I've periodically moved into and lived in some of my rentals so it's something I'd be willing to do again...
One thing that I think is an important lesson here is not to rent to blue collar workers. My tenants at MOST of my rentals are usually white collar: Dr's, ivy league educated programmers, etc.
I've had a slew of unemployed bartenders apply lately at one rental I've generally also found the more blue collar the job the lower the credit and the more problems with the tenants.