Habitual Late Paying tenant! To evict or put up?

31 Replies

She may be telling the truth about borrowing from her 401k. That bothers me worse than if she said she just forgot or was to busy to get around to paying on time.  You might want to direct her to a third arty place that can give her help and help her turn her finances around or you could have an eventual eviction in the future as it sounds to me that she is digger herself a financial hole. As far as late fees, I would address the current late fee and tell her you will waive all past late fees amounting to XXX as a show of good faith to get her back on track while drawing a line moving forward.  

@Jacob Beg She has just gotten too far behind to catch up. But if she is borrowing from her 401k, she probably understands it is not sustainable to keep paying 3 weeks late. When she gets caught up, remind her that rent is always paid in advance before it is consumed, and that is fair; and thank her for getting caught up. I don't like turnovers and I don't like the current covid environment but it is up to you which is riskier, renewing or not renewing once the lease comes up.

@Jacob Beg

She’s in your kitchen. That’s a problem. I like what Jim said, next time don’t let it get to this point. Spending even one minute stressing about this kind of thing isn’t worth it. Solve the problem, and next time prevent it as opposed to solving it.

I take 2 accepted methods of payment: auto debit, etransfer. Anyone who is late loses their monthly auto discount of $1-$200. Anyone late twice gets the Reebok. And if the market gets warm enough credit card backup is a requirement, right now it’s optional.

Let them know that it's expected on time from this point on - enforce the late fees.  after Nov., file an FED after the 15th if not paid up in full.  If she doesn't take well to the retraining, there's no shortage of qualified tenants willing to pay over-market right now.

Depends what your goals are. If you are trying to reach financial freedom or improve your financial stature, then any approach other than eviction is not going to move you towards your goals. Evict, learn and set the behavior at the start.

Run it like a business, in order to be treated like a business. Relying on emotions for decision-making rarely make a profitable business in real estate.

With that being said, if you value kindness and are ok with making the world a better place by potentially losing some profits, then that too is dependent on your goals! It is always up to you :)

@Chris Levarek well said. This pisses me of because I do value kindness. And I’m starting to question my approach. I don’t strictly enforce late payments to give tenants a break if they are a few days late here and there. I have been particularly cognisant of this due to the pandemic. 

So she promised to have the rent deposited by today. I can already tell that next month will be late again if she is just depositing 3k and the rent is due by 1st of each month. 

As someone else said, perhaps start serving pay to quit notice and that might bring her back to compliance. My experience is that sometimes it has an opposite effect, escalating an adversarial stance resulting in larger uncollectible rental loss and potentially malicious damage. It’s a balancing exercise but her annual  lease was renewed recently so I’ve got to find a way to curb this conduct and terminate when it comes time for renewal unless there is a radical departure to this sordid affair.