Do a short or long term payback agreement for Tenant who is behind?

Jersey City, New Jersey
Managing Your Property
3yFollow

Do a short or long term payback agreement for Tenant who is behind?

Timothy Heck
Member since 2023 · 19 posts · 4 votes

Hello,

I have a tenant of my parents who is now 3 months behind, their lease is up in 3 months.  It was 2 brothers and their mother and the mother has moved out.  As well one brother is a trucker who has said the loads are slowing down.  Bottom line their income is down and I don't see signs of getting better as the economy slows down.

Should I offer a payment plan to the end of their lease or give a longer timeline?  Or just keep it short to look to evict?

I've heard its a landloard market so i shouldn't worry about getting someone maybe late summer or fall.  This is not in a great town but close to NYC and they have some new condo buildings that are renting for $400 more than ours currently, our building is 15 years old, not luxury but definitely modern.

0Reply
29 views

Most Popular Reply

Richard F.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
3y
Aloha,

If Mom was on the Rental Agreement to begin with, she (along with the brothers if they were named on the Agreement and of age) is still responsible unless you either specifically removed her from the Agreement in writing, or you have no written Agreement to begin with. Either way, definitely do not give them a pay back period longer than the current term, and do not renew them; give them the notice per local law of non-renewal and the need for them to vacate.
1Reply
See this reply in the discussion

3 Replies

Jump to latestLatest
  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Aloha,

    If Mom was on the Rental Agreement to begin with, she (along with the brothers if they were named on the Agreement and of age) is still responsible unless you either specifically removed her from the Agreement in writing, or you have no written Agreement to begin with. Either way, definitely do not give them a pay back period longer than the current term, and do not renew them; give them the notice per local law of non-renewal and the need for them to vacate.
    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Timothy Heck:

    I would not offer a payment plan. They can't afford their monthly rent, so they definitely can't afford the current rent and past month's rent.

    If it were me, I would give them until the end of March. If they meet it, I would apply their deposit and cut my losses. If they refuse to leave, I'll evict and demand payment of every dime owed. Most people will leave.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    1Reply
  • Joe Xiang
    Property Manager · Jersey City, NJ · Member since 2023 · 8 posts · 1 vote
    3y

    Depends on your relationship with this tenant, but usually not a good plan.

    What you need to d first is to file eviction immedicably, since the eviction case in NJ will take 3-5 month before you can get the case number.

    Then, discuss with your tenant. Your goal is to let this tenant leave and get as much money back as you can.

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