Tenant asked to borrow money from ME!

General Landlording & Rental Properties
5yFollow

Tenant asked to borrow money from ME!

Jiva SegaranPro Member
Flipper/Rehabber 路 Easton, MA 路 Member since 2014 路 84 posts 路 22 votes

SHe said the previous landlord used to front her money several times because she was good for it. She needed $500 to do something but her ss check wouldnt clear till tomorrow. She would write the check to repay along with the rent money which I can cash the next day.  Never a dull moment in the world of landlording.  Would anyone do it to help a tenant out for one day?  Happy New Year!

2Reply
80 views

Most Popular Reply

Neil Schoepp
Real Estate Investor 路 Milford, PA 路 Member since 2014 路 395 posts 路 299 votes
5y

So it's that time sensitive that it can't wait one day? 

No I wouldn't. I run a business, one that provides housing. If I was interested in loaning money out I would become a private lender or a bank. 

10Reply
See this reply in the discussion

19 Replies

Jump to latestLatest
  • Neil Schoepp
    Real Estate Investor 路 Milford, PA 路 Member since 2014 路 395 posts 路 299 votes
    5y

    So it's that time sensitive that it can't wait one day? 

    No I wouldn't. I run a business, one that provides housing. If I was interested in loaning money out I would become a private lender or a bank. 

    10Reply
  • Christine Kankowski
    Real Estate Broker 路 Temecula, CA 路 Member since 2014 路 992 posts 路 782 votes
    5y

    That is one reason to state you are the property manager, and not the owner...  I am am business, not a bank.  I've never lent money to a tenant.   WE ahve had one, in a home for 17 years now, and they pay twice a month, because it is easier for them.  It is written in the contract and we both have agreed to it. 

    3Reply
  • Robert Fitzgerald
    Merrimack, NH 路 Member since 2020 路 6 posts 路 4 votes
    5y

    @Jiva Segaran

    As you said, never a dull moment!!!

    0Reply
  • Kyle J.
    Rental Property Investor 路 Northern, CA 路 Member since 2012 路 5k+ posts 路 5k+ votes
    5y

    Not in a million years.  Especially since it sounds like she expects it to be an interest-free loan.

    The closest I've ever come to doing an interest-free loan for a tenant is when rent is due on the 1st of the month, late on the 2nd, but they technically have until the 5th to pay me before a late fee kicks in.  As far as I'm concerned, if they pay anytime after the 1st, but before the late fee kicks in, that's me giving them an interest-free loan.  :)

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 路 15k+ posts 路 11k+ votes
    5y

    No.  If there was a problem with their paycheck and they needed to pay on the 2nd instead of the 1st, I'd be fine with that as a one off, but no way would I literally lend them money.

    1Reply
  • Joe Edwards
    Investor 路 Northern New Jersey 路 Member since 2020 路 94 posts 路 96 votes
    5y

    @Jiva Segaran

    Nope not at all. That would be creating a bad habit for someone who has to pay me on time every month. SS check or not, sorry can't do it. I only lend money to people I can afford to never see it again! Standing practice for me to keep my life drama free

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 路 15k+ posts 路 11k+ votes
    5y

    Tell her to ask the previous owner for a loan.

    4Reply
  • Michael Plante
    Deland, FL 路 Member since 2017 路 2k+ posts 路 1k+ votes
    5y
    Originally posted by @Theresa Harris:

    Tell her to ask the previous owner for a loan

    LOL. Awesome answer 

    0Reply
  • Steve Vaughan
    Rental Property Investor 路 East Wenatchee, WA 路 Member since 2014 路 10k+ posts 路 16k+ votes
    5y

    My tenants are more likely to ask if I need a loan.   Just a handyman in a minivan they feel sorry for.  

    So the answer would be yeah right, let me know if you find somebody to do that.  Then we'd have a chuckle. 

    1Reply
  • Bill P.
    Investor | Syndicator | Instructor 路 Cincinnati, OH 路 Member since 2008 路 435 posts 路 198 votes
    5y

    @Jiva Segaran in today's environment she can borrow money from you and then not pay you rent because of covid. We live in interesting times.馃榿

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker 路 Cody, WY 路 Member since 2010 路 28k+ posts 路 41k+ votes
    5y

    Send her to one of the payday loan or cash advance stores. That's their business, not yours.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    1Reply
  • Jonathan R McLaughlin
    Rental Property Investor 路 Boston, Massachusetts (MA) 路 Member since 2016 路 2k+ posts 路 2k+ votes
    5y

    "Oh, I'm sorry, I'm not in a position to do that"

    0Reply
  • Mario Jones
    Member since 2018 路 4 posts 路 1 vote
    5y

    @Jiva Segaran I wouldn鈥檛 loan the tenant money, but would offer advice on how they could rearrange other payments to fit their SS payment schedule. Usually waiting one day for a check does not equate to an emergency need. It鈥檚 also a red flag, if they are comfortable asking you for temporary loans.

    1Reply
  • Account Closed
    San Jose, CA 路 Member since 2015 路 4k+ posts 路 3k+ votes
    5y

    LOL, never.  Some tenants need to learn how to prioritize their money, but you can rest assured that they do know who they have to pay first.  If they know they will lose their housing if they don't pay you first, usually they will pay you first.  Then go get their $500 tattoo.  

    I inherited tenants who got away with murder, who started out showing me their expensive new tattoo or that they were going on vacation - and that's why they couldn't pay their rent on time this month.  The previous manager (one of the previous owners) let them get away with this.  I very nicely, but firmly, explained that I was hired to collect the rents on time and would really, really hate to have to evict them.  

    Most started paying on time every month.  I did have to evict one who just couldn't help getting more new tattoos instead of paying rent.  She couldn't believe I really meant it.

    You can do it nicely.  But, no need to go into a huge explanation.  They're just listening for a definite "no," and if they don't hear that, they will keep pushing the boundaries.  So, nicely but firmly say - no.

    0Reply
  • Jiva SegaranPro Member
    OP
    Flipper/Rehabber 路 Easton, MA 路 Member since 2014 路 84 posts 路 22 votes
    5y

    @joe edwards  That is the first thing that went through my head, oh so this is going to be a regular thing. I was just so thrown off guard .

    @theresa harris - Excellent reply! lol

    @Jonathan R McLaughlin - thats my new go to reply. love it

    @Account Closed Yes, I do not like to get into tenants business because we all know they all have stories, and while some are true, many are distorted.  And I don't giving explanations, or lying.  Just keep it simple and "Oh, I'm sorry, I'm not in a position to do that" .

    Searching for a large multifamily to purchase now to get this 2021 off crackin! Lets go BP! ALoha

    0Reply
  • Jiva SegaranPro Member
    OP
    Flipper/Rehabber 路 Easton, MA 路 Member since 2014 路 84 posts 路 22 votes
    5y

    Omg, had to post the update, I went to collect the rent and turns out the tenant had needed the $ to go to the casino because she "needed to screw".  She went the next day anyway.  I didnt want to hear details. Just thought yall could use a chuckle with this update.  Never a dull moment, but I love this real estate business. 

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 路 15k+ posts 路 11k+ votes
    5y
    Originally posted by @Jiva Segaran:

    Omg, had to post the update, I went to collect the rent and turns out the tenant had needed the $ to go to the casino because she "needed to screw".  She went the next day anyway.  I didnt want to hear details. Just thought yall could use a chuckle with this update.  Never a dull moment, but I love this real estate business. 

     Glad she has her priorities straight-not.  What a clown.

    0Reply
  • Enrico Angella
    Rental Property Investor 路 Rome Italy 路 Member since 2020 路 42 posts 路 19 votes
    5y

    These days some tenants are crazy! I'm always fascinated how tenants sometimes ask landlords things that are out of this world. The fun part is that they will behave like they just asked you the most normal thing and make you feel a moron if you tell them no!

    My strategy after over a decade of the most stupid/annoying requests our tenants constantly ask is this one:

    1. the whole guilt part a tenant puts on you is a strategy, nothing more. And you shouldn't care at all

    2. always put yourself out of the contest, using "we" or "the other owners" etc. or quoting policies that you use to treat every tenant the same way. 

    3. keep the relationship with any tenant as formal as possible, it is a business matter. You provide a safe and pleasant living environment to your tenants, trying to respond as fast as possible to any maintenance request. They have to pay rent on time, maintain your property in good condition and respect the lease agreement they signed.

    Best of luck with this annoying tenant!

    0Reply
  • Rafael Zavala
    Investor 路 Lebanon, PA 路 Member since 2016 路 62 posts 路 65 votes
    5y

    Ask yourself, are you an investor or a bank?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free