Do I move on from tenant?

Question

I have a 2 year tenant on a property I'm managing who has been behind multiple months on several occasions. Ive been patient with them and allowed them to get caught back up best as possible.
It's been an ongoing issue with late payments for about a year now but they are almost caught up and lease ends 5/31/25.

Question is do I consider extension of an extra month to allow them to move and find a place as they are asking (they assumed they could resign) or just remove them as I reached out 45 days prior to lease end to advise lease would be ending 5/31/25.

I know vacancy is the worst thing to have in the industry - pull the plug on them or work with them??

NOTE; Current Rent is:1750 - they stated they could pay more if needed but that seems far fetched

TIA!!

Greg Scott · Answer

Actually, a vacancy is not the worst thing.  Much worse is having someone living in your unit who is not paying.  They are costing you wear & tear and utilities and you have no revenue coming in.

You have been very lenient, and now you have set the expectations that you do not follow your own lease.  I would say that you should let this tenant go, mostly so you can start over and set appropriate boundaries.

Marc Winter · Answer

@Greg Scott is right:  the only thing worse than a vacant unit is having a bad tenant living there.  Cut the cord, do not extend or delay.  Be prepared for a mess to clean up.

BTW, letting a tenant get 30--60+ days behind is not good property management.  Make sure to follow your own rules (lease).  By letting the tenant slide, you will be responsible for all the expenses without the rightful income.

Our policy is simple: our lease states rent is due on or before the 1st, late if not received by the 5th, and proper notice to pay or quit will be posted on the 10th.

BTW, along with the posted notice, we attached a list of local community/government agencies that have helped people in need in the past.  Help comes to those who help themselves.

We just follow the lease. Agreed, it's not always easy--but running a business does come with both challenges and rewards.

Good Luck!

David Peschio · Answer

With nearly 30 years in property management, I can confidently say that adhering to your established guidelines is paramount. While vacancy may seem daunting, deviating from your principles often leads to costly mistakes and regrets.

Your tenant's history of multiple late payments over the past year indicates a pattern that could continue if they remain in the property. Despite their nearing the end of the lease term, extending it could inadvertently encourage further delays and complicate future management. You have already provided ample notice regarding the lease's conclusion, aligning with standard practices.

Maintaining firm policies not only protects your financial interests but also sets clear expectations for all tenants. While vacancy poses challenges, it is preferable to have an unoccupied property than to retain tenants who consistently fail to meet their obligations.

In summary, trust in your experience and uphold your standards. This approach will safeguard your investments and ensure long-term success in property management.

Adam Bartomeo · Answer

If they were good tenants in every other way and they were 100% caught up then we would put them on a month to month lease until they prove that they can pay the rent on time. This gives you the ability to remove them at anytime without being locked in.

Tony Savage · Answer

Hey Chris,

Stick to your original 45 day notice.  They had and have more than enough time to find another place to live.

Loren Clive · Answer

Technically, this is the owner's decision not yours since you're the PM. What does the owner say?

I would advise them not to accommodate this tenant. There are better tenants out there.

Drew Sygit · Answer

You stated ongoing issues for a year and only now they are getting caught up.

Doesn't sound like they can afford the current rent, let alone an increase.

To avoid animosity, you might tell them you plan to sell as them being behind on rent has stressed you out too much!

Joseph Bui · Answer

I have 10 doors across Memphis and Detroit. There is one particular tenant that pays late fairly often and occasionally will short me a month, but usually makes up for it in the following months. That being said, if the tenant is caught up, I wouldn't move on. I get that it can be a little stressful, but I would rather have some money that no money and deal with an eviction. I would leave them month to month and if they fall behind too much, then move to evict them. As long as they eventually catch up, I would leave them. Happy to chat more and share stories and resources :-)

Ryan Spath · Answer

We understand how challenging tenant situations like this can be. However, we do have a clear policy in place: if a tenant is late more than once within a twelve-month period, we do not offer a lease renewal. In this case, the tenant has been consistently late multiple times over the past year, even though you've been patient and allowed them opportunities to catch up.

Given that the lease ends on 5/31/25 and you provided appropriate notice 45 days in advance, you are well within your rights to end the tenancy. While they are requesting an extension and suggesting they could pay more, based on the history of payment issues, that promise may not be reliable.

While vacancy is never ideal, continuing with a tenant who has an ongoing pattern of late payments often leads to more stress, lost income, and potential legal headaches. It may be in your best long-term interest to stick with the lease-end notice and plan for a new, more stable tenant.

If you want to show a gesture of goodwill, you might consider offering them a strictly non-renewable 2-week extension (with clear written terms) to aid in their move-out — but only if you believe they’ll honor it and leave cleanly. Otherwise, it may be better to follow through with the original plan and start marketing the property immediately.

Chris Chisholm · Answer

First off, only you with the relationship you have with this tenant can say whether it's worth moving on or not.  Is his a new problem?  How bad it is?  A few days late?  Several weeks or months late?  What are there reasons?

I've been on both sides of it.  I have a tenants that probably has only paid the rent on time 5 times in the 4 years I've owned the place.  BUT he's ALWAYS communicating and paying it when he says he will (AKA easy to work with and plan around).  He's ALWAYS fixing stuff up around the place and keeping it well maintained.  Overall a great stable tenant other than some cashflow issues at times.  He's even recently split with his now ex who is still living there and he still helps take care of the place for her.  Flipside...had a tenant just move in, was late from day one and was every month...eventually got worse and and she stopped paying the rent.  Never ending list of excuses and "next week I'll...".  Her 2 dogs I allowed, ended up being 10 because the one was pregnant when she moved in.  She made a mess of the place and the dogs made a mess of the yard.  She lasted 5 month...It's never fun evicting a single mom 2 weeks before Christmas, but this was snowballing to be worse and worse.  I kept the place vacant for about a month and a half to clean/reno some things and found a new tenant that is SOLID and they are paying about 30% higher rent than the one I evicted.  Sometimes you have to take a couple steps backward and have a vacancy to take 10 steps forward to more profitable.

Do I move on from tenant?

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