How Are You Handling Non Paying Tenants ?

[John Caleb Pavlus]

BP,

I have a couple tenants I can't evict during COVID who haven't paid in quite some time. What is your approach? How are you handling it?

Thanks!

~Caleb

[Alyssa Dyer]

Originally posted by @John Caleb Pavlus:

@John Underwood, @Shane C., @Theresa Harris 

Thank you all for your responses.  The moratorium in Florida does not end until Sept. 1st. 

Theresa, did you set up a payment plan for them?  Also, are you threatening eviction right off the bat or are you just letting the lease end and not renewing in hopes that you will be able to get some money out of them.  With low income rentals I know that if I evict them then I'm not going to see any money at all. 

Thanks all.

~Caleb

I'm not in FL so take this with a grain of salt. When the shelter in place really started to become a reality we went ALL IN on customer service to solidify the relationship prior to the (inevitable) stickiness that was to come. 

Anyway, we checked in with all tenants every other week thanking them for paying, reminding them we are a small business and their payment (even if just partial) was really helpful, helped several file for unemployment, and offered to pick up rent so they didn't have to come to the office. We reminded them all late fees and NSF fees would be waived. We also (after getting permission from our property owners) took an extra step and told our tenants that if their financial position became burdensome, if they could communicate that with 30 days notice we'd allow them to terminate their lease and retail their security deposit. Mostly, we let them know that we were here to help them. 

I only say all that to say, most of our tenants were so grateful to have communication from us that they reciprocated. They'd make partial payments, pick up extra jobs, communicate proactively if they wouldn't be able to pay, and/or voluntarily move out. We only had a single eviction to file (out of 140) when the moratorium lifted. We had 2 (if I remember correctly) voluntarily move out and left the property in good shape. We have ~10 who are still a bit behind on rent. 

Anyway- it put us in a really great spot on the eviction we had to file because we were able to show overwhelming support of our tenants. We had the ruling immediately and moved right along.

Tenants are people. They want respect, compassion, and to know their options. :)