How do u deal with a deadbeat tenant who's using covid-19 as a cover. Tried talking with him and the money is always coming. Got a property manager company who is doing the eviction they spoke with him suppose to be out end of month I c no movement. I really sick of landlording back of my mind it was not if but when problems would occur. My first year of being a Landlord on a Multi Family. Tenant dies, bank increased monthly payment do to escrow misc calc. I was trying to help on this handyman tenant with discount rent to help around property and got burnt. Family says I told u so. No support aside from property mgmt.
I’m new to all this but Pre-COVID-19 I had to kick my brother in law out of my house. There was no lease agreement but he developed tenants rights because here was there over a month. I went to the local courthouse to get the legal documents and paperwork necessary and I filled it out and served him a copy. I said, “If you are not out by such and such date, I will sue you for x amount of money.” He was out on that date.
It sounds like you didn’t set the stage in the beginning and allowed the tenant to take advantage of you. It’s a business and it’s impersonal. DO NOT TREAT THIS AS A HOBBY. Whatever you have in the lease regarding late payments need to be upheld. Did he lose his job because of COVID? Is he not getting paid? I don’t Understand why the government is protecting tenants and not the business owners. If that’s the case then, you might have a headache, if not, you should consider eviction or even a “Pay to Vacate”.
Pay to vacate may put a bad taste in your mouth but it’s faster and less costly than going to court with the eviction process. Basically, you give the tenant a small sum of money to move out, just make sure you have them sign all the necessary legal documents, maybe offer $500?
Like I said, I’m new to all this, but I just got done reading this book called “Rental Properties and how to manage them” and it has such great information and they explain situations similar to yours. I wouldn’t discount rent under any circumstances, but that’s just me. I’m using that book to assist in craftIng my business plan when I buy my first investment property next year
Remember, if a tenant is not paying rent, they are stealing from you and must be dealt with accordingly. See it for what it is.
Question: why are you dealing with it at all if you have a Property Manager? They should know the law and what they can/cannot do. Unfortunately, you have the misfortune of starting right when COVID hit. Wait until the moratorium is lifted, then file for eviction and get a judgment immediately. Until then, you're stuck.
We are in a similar situation, except our deadbeat tenant won't even talk to property manager. No rent since February, not paying utilities either. We tried to offer a sizable cash for keys just to get the unit empty, but other than that we have to ride it out and try not to get too upset. I've been sending letters to our various elected officials, it at least makes me feel better since they like to villanize the landlord. In real estate it is the tenants, not the properties, that bring the wealth. Need to keep a cool head and roll with the punches. Hopefully karma will eventually get them, but brace yourself to not recover any money from this tenant.
Real estate investing is not easy and self-managing is even harder, which is why you have to plan for down turns and unexpected events to happen. You have to factor in vacancy losses and eviction cost when you run your numbers. Covid is a bit different right now, but this shows how important having reserves are and planning for the worst. In Ohio we are still doing evictions and filing as normal!
I’ll be honest, I hate this “cash for keys” advice everyone keeps giving because they heard it on a podcast recently! I have never done this and this is why.......the good owners on here have great screening processes in place, but if other owners do not file evictions or send people to collections, our screening process WILL NEVER WORK, and you allow that tenant to go take advantage of another creditor with absolutely 0 responsibility. You are providing them incentive to not pay their bills, so do you really believe that teaches them a lesson? It’s bigger than any one of us and we should act as a community!
Lastly, I saw tenants called names in these posts and would only say, use caution. It doesn’t make them A deadbeat or anything else because they didn’t pay you, it makes them a non paying tenant that needs to be evicted. No reason to be unprofessional ESPECIALLY if someone has branded themselves as a low income landlord!
I get that some tenants are having a hard time right now, but communication and coming up with a plan is key. I don't understand what they are thinking when they shut off all communication. Yes it is frustrating, but as someone else said try to keep your cool and not let it get to you. Get your ducks in a row and once the eviction moratorium is lifted, start the eviction process. Had they been communicating with you, I'm sure you'd have worked with them during covid to prevent this, but that was their choice.
This is an unfortunate time for all of this but hope is not lost. Stay close with a real estate attorney as they can guide you through processes like this. With all of this going on you can work around non-payment of rent if their is other avenues they are not following IE other lease violations. Also so if you can find assistance documents from local charities as this can help with paying rent.