@Rizwan Halim,
Not all of this post is relevant to your current issue, but it will help you to improve your methods to reduce future issues. The ideas in this post will make you money in the future if you take the time to understand and appreciate the fundamentals.
Here are the facts related to most eviction situations:
1) The cash flow has stopped.
2) The cash flow may not restart for 30 to 60 days - it mostly depends upon your actions.
3) No matter how well you screen new tenants; there will remain elements of the unknown.
4) Knowing the laws of your state and jurisdiction is critical and seeking legal advice from an attorney is wise.
Many times, it makes better business sense to put forth all efforts to resolve the current delinquent situation. Your cash flow may be restored much quicker if you find a resolution. Stability may also be a result.
Moreover, you may turn a problem into the best payer you have or will ever have.
In your case, Rizwan, you may have been your own worse enemy and what permanently killed this relationship and stopped the cash flow.
How?
Your actions and lack of appreciation for the tenant’s situation may be the culprit. I am not picking on you, just offering a viewpoint and different approach for your consideration.
Much has been written about the best way to confront an issue is to understand the position and emotions of the other side. This is a key element of proper negotiation.
I am just guessing, so please forgive any of my misunderstandings, but you stated you had a good and long-term relationship with the tenant. Yet, the tenant is only 6 days late and not responding to your TEXT.
- Perhaps what you stated in your text or how you stated it is what killed this relationship and why the tenant is not responding.
- If the wording of the text did not kill the hopes for you to get paid, filing the eviction sure will be a huge deterrent and relationship killer.
I agree that one key element of being successful in collecting money is remaining on top of the situation. I email a friendly reminder the day the payment is due, if I have not already received the payment. Key words; FRIENDLY REMINDER. I do not attempt any further communications until the 5th day. Even my third Late Letter remains friendly and requests communication so we can work out the situation together. NOTE: I will make every effort to find a resolution.
Consider this, if someone came up to you and demanded money right now or else, and had just returned from attending your mother’s funeral in another state, how would you feel about paying the inconsiderate jerk? Would you immediately begin looking for a new place to live even though you are now paid in full?
Here I find it necessary to interject the legal factors; I highly recommend you read every word of the tenant and landlord laws in your state. Thoroughly understand the tenant rights. Learn the proper procedures for landlords - including the legal notices required.Know the laws as well or better than any attorney or judge. Any questions should be directed to an attorney your hire where the property is located to get accurate legal advice. Only by asking your attorney will you know your rights and the tenant’s rights are followed and protected. Legally, legal advice can only be offered by an attorney.
The tenant still has rights during the eviction process. If you violate any of the tenant rights, at the least you may delay the eviction process weeks or more. For some violations, the tenant may be able to recover damages from you. That is right, you will owe them money. They may be required to vacate, but your money is in their pocket.
I am surprised you were not required by your state to present or post a Notice to Quit or some type of notice before filing for an eviction. If you ARE required to post or present some type of notice and did not prior to filing for eviction, you just threw away your money, wasted time, and permanently killed your relationship with this tenant. In this case, you violated the tenant’s rights and violated your state laws.
Alternative to Eviction
In the future, you may want to consider trying a method that has worked for me for many decades. Please keep in mind at all times; THE WAY YOU TREAT PEOPLE WILL AFFECT YOUR RESULTS. Treat your tenants as you would like to be treated.
Keep in mind; if the tenant could pay you, they probably would, if they are happy with the situation and relationship. The tenant is probably embarrassed that they have let you, themselves, and their family down. Most of the time, you will discover your tenant is facing financial and life challenges, even an emergency.
If the tenant is truly having real challenges and you value this tenant as a fellow human and a good business relationship, consider being understanding and sympathetic. Bad things happen to good people.
Ask what the problem is and how you can help to make their lives better. You are now in a situation of being a contributor to society. All of us have a speed bump in our lives at one time or another. You have the opportunity to help them get past the speed bump.
It is your choice. Helping tenants (people) overcome challenges is not required by law. It is more of a personal moral issue.
If it appears no acceptable solution is possible, politely ask the tenant to move. This is much easier, more economical, less time consuming (time is money), and less stressful than printing notices and filing legal actions.
If the tenant is having financial problems - if they cannot pay, they cannot pay. Being mean and adding to the stress is unproductive. Give them some time to find a new place to live and move. Be very nice and polite and it will all work out. Asking the tenant to leave is much easier and quicker than the legal process.
The legal process can take a month or so and requires your up-front money that you may never recover. Moreover, the polite approach with less stress reduces the chances the tenant may damage your income property.
The laws in each state are different. Become thoroughly familiar with the laws. Know them as well or better than any attorney or judge. A mistake can be costly and cause delays. Seeking legal advice from an attorney can be the cheapest investment you can make.
Just because my methods work for me does not mean they will work for you. Every investor and situation is unique.
Best of luck.
