My tenant began struggling to pay rent what should I do to help?

Question

One of my tenants just gave the notice they began struggling due to loss of job related to COVID and would like the opportunity to make partial payment and a way to repay later.

Is there any legal forms or document available we should have them signed or should I make my own agreement? The property is in Houston TX. Thank you all for your advise!

Daniel Cisneros · Answer

Thank you all very much for taking the time to help and your wise advice, I really appreciate it! My tenant end up paying last month but we put something in writing taking points from all your wisdom and they will begin making partial payment this month Nov. They don't want to move and they are trying their best to stay and we are certainly trying our best to keep them and help in any way possible.

Elias Camhi · Answer

Hi Daniel, we are a property management company in Houston and there are a couple of things that we have been able to do to improve the circumstances.

1) There are funds available from Harris County that you and the tenant can register for and obtain for a couple of months worth of rent.  Take advantage of this, it is being handled by BakerRipley

2) Induce them to vacate.  The rental market is pretty strong and if they can vacate to a more economical or with someone that can better assist them, that would be your next best scenario.  Do not penalize them for moving, maybe assist them in the transition.  If you can get your property back, you can search for a new tenant.

Unfortunately, we don't know when the end to this pandemic will be and owners as much as tenants are struggling, so it is not an easy situation to navigate.

Hope this helps to some extent.

Adam Martin · Answer

Due to the cdc moratorium on evictions you don’t have much of a choice but to work with them and just be thankful it sounds like they are willing to pay partial. You need to talk to them to get a timeline for what they can pay for now and how long this should last.  The moratorium ends dec 31st for now nationally but with you being in ca who knows for you.  Make sure to document it and hold them accountable and document all payments preferably electronically.  We don’t have a lot of protection right now so I suggest being as accommodating as possible to try to get whatever you can.  The last thing you want to do is take too hard a stance and then they start googling ways to get out of paying.  It may also help to look up some local programs helping tenants pay rent and see if that may help but be careful and read any documentation they have because I have seen some posts that some have strings attached.  Good luck and let us know how it goes.  As far as documentation just bring a pen and paper and write something out.  It doesn’t have to be too formal just include partial payments, dates, and when they will start to catch up.

John Underwood · Answer

Just type something up that says what you need.

Christen G. · Answer

https://www.biggerpockets.com/...

Patricia Steiner · Answer

Refer the tenant to the Housing Authority to see if they qualify for assistance based on their job loss.  I appreciate that the tenant came to you and wants to see if a solution can be found but ask that they exhaust the other venues available to them first - like unemployment and  housing assistance.  If they've been a respectful tenant, you could also deduct the reduction from their security deposit which is permissible in California:

"California Civil Code Section 1950.5 only permits a landlord to use a tenant's security deposit to pay for the costs of: (1) unpaid rent; (2) cleaning the rental unit after you vacate (but only to what it was before you moved in); (3) repairing damage caused by the tenant that goes beyond normal wear and tear; and (4) ...(https://www.yourlegalcorner.co...)The security deposit could be rebuilt in installments (as it will be deducted to offset reduced rent payments) following re-employment.  This way, you get paid-in-full, their security deposit actually benefits them in time of need, and you can have them repay the security deposit in installments once employment is acquired.

Put it all in writing, everyone signs/dates, and move forward.  Be sure to give them an accounting of the amounts deducted from the security deposit each month and a running balance.

Hope this gives you another option...

My tenant began struggling to pay rent what should I do to help?

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