Week to week rentals?

Question

Hello everyone,

I have . A tenant who has not paid rent this month and I'm worried they will not pay next month either. I'm wondering if it is legal/ advisable. To set up rent on a week to week basis, like a payment plan for the tenant, as opposed to giving the notice to quit. Just thought this might be a better option. My concern is if they pay one week and not the next, would that be considered as accepting partial payment, therefore I cannot legally evict tenant? If so, what would be the best way to structure the lease agreement? Thanks so much for any advice!

Sebastian Roy · Answer

@Nathan Gesner @Ray Hage Thanks for the feedback. Unfortunately sometimes we get into these tough situations and have to make choices. I'm in a similar situation with your tenant on week to week. This tenant has been a mutual friend for over 10 years and also doesn't really have another place to go. He does however gross 3x the monthly rent, so he is certainly able to pay, he just decides to spend his money on other things. His father is a cosigner and paid the first month and security deposit for him, so this is literally his first payment and he missed it...

Sebastian Roy · Answer

@Ray Hage Sounds like you're enjoying Florida better! How do you like being an agent in Fort Lauderdale? I plan on moving to Florida within 5 years myself!

Sebastian Roy · Answer

@Ke Nan Wang @Nathan Gesner. I will certainly take that advice and stick to the eviction process if it turns into that.

Ke Nan Wang · Answer

In our state, accepting partial rent only reset the eviction process (LL has to post another 3 day notice with the remaining balance, not forfeit the right to evict). So first check your state law.

My reaction to these scenarios are all different.

I tend to be very strict in the beginning. There are different rent paying behavior from all sorts of tenants. Some tenants will do everything to pay early or on time. If they are one day late because work schedule they will feel embarrass and apologetic. For these tenants, if things happen to them I tend to work with them more.

I've also inherited a number of tenants where they always paid before the grace period ends. So they pay on the 5th day of the month. Since I didn't train them right in the beginning and they always pay before the 5th, I'm okay with letting these tenants slide.

For every new tenant I put in, I set the expectation straight upfront with them when signing the lease. I told them rent is due on the first and late on the second. If I don't see rent on the first, I'll post three day notice on the second day of the month. I don't let emotions getting involved. They can tell me sobbing story all they want, I told them I feel sorry for them but still post3 day notice on the second day if I don't see rent. I charge late fee per the lease agreement and file for eviction when the 3 days up. I don't have any problems with any of my new tenants. Even I do, I carry out my procedures. The earlier you start the process, the less loss you take.

Nathan Gesner · Answer

My definition of "friend" is clearly different than yours.

He does have a place to go. He can move in with his dad, live in his car, sleep on someone's couch, find a homeless shelter, etc. You'll have a difficult time making it as an investor if you feel obligated to take care of people that don't take care of themselves.

The good news? It's a free country and you can choose to take a hard line or go easy on him and see how it plays out. My experience tells me you'll end up kicking him out sooner or later and you'll wish it had been sooner.

Ray Hage · Answer

Absolutely agree with @Nathan Gesner. You got to remember this is a business and not a personal relationship. Now if he has been your tenant for 5 years and absolutely was amazing (never missed payment, took good care of the place, etc), you could go a little easier on him but if he is in a desperate situation, he may go from being amazing to amazingly difficult.

I have one tenant who does make weekly payments because he is living month to month with nowhere to go honestly. He always catches up and he has been my tenant for 4 years. If he loses his job, guess what, he won't have any money and I will have to ask him to leave or evict him. I really like the guy (super friendly, alerts me to issues, fixes things on the property sometimes) but if he doesn't pay and doesn't leave, 3 day notice and if necessary, go through the entire eviction process.

Nathan Gesner · Answer

Accepting a partial payment, even $1, will be viewed by a court of law as an agreement of continued tenancy.

The best thing to do is suck it up and start the eviction process. Most Tenants will either pay the rent or pack up and leave before standing in front of a judge.

Sebastian Roy · Answer

Hey @Callaway Pate. I agree with you, this is my first tenant and he is a mutual friend, unfortunately in this business, you need to make some tough choices, but it is best for me in the longrun.

Callaway Pate · Answer

Hey @Sebastian Roy, it's a hassle but it'd may be a good idea to an eviction process. You are right that letting your tenant pay week to week counts as partial payment. This means that in court they'll consider it as continued tenancy and make it harder to evict the person. The sooner you cut ties the less of a headache you'll have in the long run.

Best of luck!

Week to week rentals?

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