Both tenants in duplex are having problems paying rent

[Nathan Mount]

Here's my scenario, and am looking for some help figuring out how to handle it.

2 units - leases end on Oct 31.

unit 1 - renter came to us last week saying she wants to apply for rental assistance thru the state of Indiana because she's not working as much due to Covid.  She has consistently paid her rent, early, but now she needs until the end of Sept to pay this month.  She has a co-signer on the lease, which in my eyes, should take up the slack.  Do I contact the co-signer?

unit 2 - renter said he needs to pay Sept in 2 installments, which is fine with me.  But I'm worried he may have a steady income any longer due to the pandemic.

I don't want to renew leases if neither of them can pay.  Should I just give them notice now that we won't be renewing their leases?

Thanks

[Adam Martin]

Assuming you have a notification period of 30 days I would not send them a notice of non renewal now or you are highly unlikely to see any of the money from this month.  I had a tenant with this issue where they got behind but got caught up within a few weeks once unemployment benefits started coming in.  They were at the end of their lease and I thought about non-renewal but they are caught up and current now.  I did not put them on another term lease and we are staying month to month to allow everyone greater flexibility. With the new CDC guidelines we can still evict for violation of lease terms which I hope includes staying past the lease but we'll see.  If they aren't current by the first this will be your chance for the 30 day non renewal, but I'd give them time to see if they are true to their word.  If they are they probably just legitimately having a hard time like a lot of others but if they make you a priority while they are struggling, that is the tenant you want to have.