So I have a tenant that receives Local City DSS Payments for rent. Her payments were recently reduced from 90% of the rent to about 40% of the rent. She recently qualified for section 8 and I will actually be raising her rent on the next lease from $750 to $850.
That $850 will be completely paid for by section 8 but I have the feeling she is going to try to stiff me on the cash she owes me from her portion of last months rent.
Do I evict her or suck it up for the the payments that I know I will receive? I know if I evict her I will lose the money she owes me anyway? I feel like she has me by the onions on this one.
So, she owes you 50% of one months rent, so $375? Are you holding a security deposit?
Yes, can I legally deduct from that?
You cannot deduct deposit from rent unless specified on the lease. Your lease have to have Liquidated Damages clause. I have a similar situation tenant rent is $925 and section 8 paid $750. He owes me around $300. I choose to work out and keep collecting as much as I can instead of evicting him for $300 because the money I will loose on evictions and getting another tenant will be at least 3 months of rent. I know the tenants rarely will delay payment on purpose cause if they are evicted most likely they will loose Sec. 8 support. But sometimes they are just too poor and don't have the money. As long as he can keep paying me bit by bit I
not sure about NY, but in NC you can definitely used the deposit to pay for unpaid rents.
I would suck it up because you will get more with the rent increase.
I would set up a payment plan where they pay a small amount and a modest late fee to get caught up over the next several months. As long as they continue to make progress and you get some late fees, ride it out. I generally wait until tenants move out before deducting late rent from their deposit.
From a business stand point i'd definitely suck it up. Not saying give up trying to get what's owed but you're likely going to lose way more evicting her, and getting a new tenant in than you would if you collect. As others said if it's still owed at the end of her tenancy then deduct from the security deposit.
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