All Forum Posts by: Jorge Caceres

@Jorge Caceres

1. Conversation.

- Do you have a plan to cover the rent?

- If I allowed you to break the lease and move, is that something you would consider. IE move in with family member etc. If so, maybe I reimburse your security deposit if you leave it move ready..

- Could you prepay half of next months rent now?

- Perhaps make an amendment going to weekly or semi monthly payments until things smooth out?

2. Write up whatever plan is hashed out with dates and expectations. Have them sign and date. Last line should be something along the lines of. If this plan is not followed eviction process will begin immediately, without any concessions.

3. Keep them on a short lease knowing it is extremely difficult to catch up once someone falls behind.

I've had good tenants go both ways. Move out quickly and quietly. I was happy to give them their deposit if they left the place in good shape. I could always rent within a month in my area. Usually within 10 days.

Also had them prepay and go weekly for a month or two..

Sadly, I've also had those that we had to go full court press on.

Communication is the key.

If they go silent. Be ready to serve up the required notices.

Hi @Jorge Caceres, I would have a friendly discussion with him in September after he submits his monthly rent.  This way the tenant feels more comfortable explaining his current financial hardship and will likely provide more information vs you demanding an answer now. 

If the tenant has hardship, try and work a payment plan with him short term 1-2 months and go from there.  The tenant seems like a respectful tenant, wouldn't want to replace him with a destructive tenant.  

Like others have stated, find out his game-plan and go from there. If the tenant knows he will have an issue paying rent even with 1-2 months of help then move on to the next tenant. 

Quote from @Jorge Caceres:

Hi everyone, I have a pretty good tenant who has been paying rent without any problems for 8 months. He just informed me that he got laid-off as something that I should be aware of. He is a very responsible person and I am sure he is actively looking for a new job, but I doubt he can pay the rent if he doesn't have a job. My question is, is there something I should start doing pro-actively? Should I be asking him if he found a new job or just wait? 

The earth turns, time marches on, rent is still due.
That's the way God made it.
Once you can control time, you can determine when rent is due. Meanwhile, that is figured out for you every month.

Now, what he does with his new found spare time will tell you what kind of man he is.  Delivering pizzas is enough to pay for rent.

I once bought a 5 bedroom house that was in pre-foreclosure.  I bought it for $112,000, they moved out and I "sold" it on a lease option getting $12,000 immediately for an option fee and cash flowed $975 a month.  A few years later I sold it for $380,000.

There were eight adult relatives and 1 small child living in the house and the mortgage was $997 a month.  Between the 8 of them, they couldn't (wouldn't) figure out how to pay $997 a month mortgage. They could have been the ones selling for $380,000 if they simply looked for work and paid the monthly mortgage. Life is hard. People can be lazy. Sometimes people (even if they are nice and likable) simply need to look for a job. 

Aloha,

If the Tenant is in financial difficulty after only 8 months, and you "doubt" he can pay the rent, it seems like you may need to tighten up your screening process. In the meantime, provide the Tenant with contact info for filing Unemployment, and possibly any covid rental assistance programs that are still available in some areas.

Since the Holidays are not that far away, depending on your market, you may be better off to let him go early without penalty, just paying for days of occupancy and leaving the place clean.

You did not indicate your location, but in most areas, ANYTHING is cheaper and faster than eviction, BUT, you should still initiate the process at the earliest lawful date.

Its important to reach out to him and ask him his game plan. Keep him accountable to his game plan. I wave late fees (only once) for my tenants that are proactive in letting me know there will be difficulties paying rent. But, I hold them to their game plan and make it clear that I can wave the rent and that the following rent will be due on time. Beyond that the future is in his hands, if he doesnt pay he cant stay.

if you did the background on the guy you should have a pretty good sense of his history. If he rarely changes jobs and has been consistent at paying rent and I could afford to carry the mortgage I would give him another month. If he has been taking care of the property it should be an easy turnover and you can keep the security for the missed rent. now if he finds a job then catches up he will be grateful and probably be a good tenant until he leaves.