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BlogsMy Rental Property CoachMissed Rent Payments - Use Your Head Not Your Heart

Posted about 14 years ago

Missed Rent Payments - Use Your Head Not Your Heart

It’s always important to remember that owning rental properties is a business.  Whether you own 1 property or 20, it's important to put a system in place for yourself and follow it.  Being able to make quick and consistent decisions based on this sound system will ensure a successful business.

Evicting a tenant can be a stressful, tedious process if you aren’t sure of the proper steps to take.  There are all kinds of situations that can lead to an eviction but the most common one is a tenant’s failure to pay their rent.

If a rent check is returned to you NSF, meaning that there are non-sufficient funds in the tenant’s bank account, things can go one of two ways.  They can go well (the tenant pays you  for the missed rent and NSF charge in a timely manner) or not so well (the tenant misses this payment entirely and possibly more rent payments).  If things go in the latter direction it is very important to act.  The first step is to send them a default notice.  If they don’t respond to that by paying you the missed rent, the second step is to start the eviction process.

This is where some landlords make the mistake of using their heart and not their head.  You hear all the time that “tenants have all the rights” and “it can take forever to evict a tenant”.  More often than not though, a lengthy eviction is a direct result of a landlord not starting the process soon enough.  They listen to excuses and promises to pay, all the while paying rental expenses out of their own pocket while these promises continue to be broken.  Suddenly they find that weeks or months have passed and they still haven’t taken the steps to formally evict the problem tenant.

Starting the eviction process sooner rather than later is in your own best interest to keep your rental property business running smoothly with the least amount of out of pocket expense.  If the tenant comes through and pays you and you feel positive about having them stay on, you can cancel the eviction.  If they don’t come through, you haven’t spent so much time and money waiting for a resolution, the eviction process is already in motion.

There are certainly exceptions to this rule because ultimately, bad things can happen to good people.  If you have a long term tenant that has had a good payment history and has hit a bump in the road, you might be willing to cut them a little slack.  More than likely they will be able to set things right.  If not you can get back to your system and go forward with eviction proceedings. 

Evicting a tenant is never a pleasant process but it doesn't have to be a nightmare either.  My best advice is stay calm, respectful and methodical.  Follow your system, learn from the experience and use that knowledge to find a better tenant next time.

Comments (5)

  1. Don't assume your lease, even if ironclad, will save you. Last year I had a judge completely ignore mine, as well as ignore statutes and ignore my respectful pleas to honor both. If you get a tenant-friendly judge, they can do that. Your recourse? Appeal. Right. After the tenant last year (with at least five serious lease violations!) demanded a jury trial last year that cost me thousands to defend while his atty was free, I've decided to do everything possible to buy a testy tenant out. At the very least, offer that if they move within a few days or a week, you WON'T file eviction. "Evictions appear online, visible for all future landlords, employers and others to see. Most tenants find that this can cause many problems for them in the future." etc. Show them their record that's already online if you must, speeding tickets and all. Some don't care. But you gotta try.

    Thos, about 14 years ago


  2. thanks for a nice post. You've captured the essences of one of the most dreadful challenge a landlord faces. Just reading you post brought back bad memories. You really did nail this one. I’ve learned the hard way that once the eviction dance starts - it's best to go into a robot mode. I'm a fun loving guy - love to laugh and have a good time, but that all changes once I pen a 3-day notice. Solid advice. Thanks

    Al Williamson, about 14 years ago


  3. Hi Joshua. I agree on both counts - I've changed and revised my lease many times over the years as new experiences come up. Also I think tenants can tell right from the start of your interaction what type of landlord you are. If you're organized with a good system, the bad eggs tend to move on. Thanks for the comments.

    Shannon Pineau, about 14 years ago


    1. Sometimes those bad eggs try to put up a fight, but if you've got your systems in check, you should be good to go to get them out.

      Joshua D., about 14 years ago


  4. Nice post, Shannon. The keys, I believe, are to have a strong, legally valid lease, and to enforce that lease. Give an inch and they take a yard is as true for landlords as it is for teachers. Once your tenants know that you mean business, they will fall in line or will need to move on to someone who doesn't.

    Joshua D., about 14 years ago