What To Do If Your Tenant Doesn’t Pay the Rent?
The idea of having a few properties to rent out of your own and make a living from is quite an intriguing prospect. Many people rent out their properties to enjoy some additional income, whereas, for some, it may be the only source of income. It’s all good until your tenant stops paying the rent. It could be because the tenant lost their job, had to spend their income in an emergency situation, are out of means to pay the rent, or are just plain bad tenants. Whatever the case may be, it is the worst nightmare of every landlord.
If you’re stuck in such a situation and can’t figure out how to deal with bad tenants who don’t pay rent, don’t worry. We’ve listed down some of the things that you can do to ensure that your tenants pay your rent on time.
1. Talk to Them
We know how frustrating and stressful it can be when your tenant doesn’t pay their dues, but taking an aggressive approach won’t help you. Try to talk to them, especially if they’ve been good tenants in the past. Try to ask them what the problem is. Make them understand how much you depend on the rent they pay. Being considerate and understanding is always good. Not every tenant who is unable to pay the rent is a bad tenant. Remember that!
2. Pay or Quit Notice
If you think talking to your tenant won’t help, you can abide by the state laws and send your tenant a Pay or Quit notice. It is a legal reminder to the tenant that they haven’t paid their rent, and if they fail to clear their dues in the stated number of days, the lease will be terminated. If that happens, the tenant is obliged to move out. If the tenant still doesn’t pay the rent or refuses to leave your property, you can take a more aggressive approach and file an eviction.
3. Send An Eviction Notice
If the tenant doesn’t budge despite multiple friendly attempts, the landlord has the complete right to file for an eviction. It will legally force the bad tenants to leave your property. You get help from the sheriff. You can never turn off the basic utilities to force the tenants to evacuate. Filing for eviction is much more aggressive and rogue action that many landlords try not to opt for. However, if your bad tenants have left you no other option, you can always opt to go this way.
4. Cash for Keys
If your tenant is unable to pay the rent due to financial problems and you know the tenants aren’t bad, otherwise, you can take another possible route. Instead of taking things legal, you can offer to pay them to leave. It may not sound right, but you got to weigh the risk versus benefit ratio. Even if you do decide to file an eviction, it may take longer than you anticipate. So, offering your tenants a cash for your house keys is another possible solution to your problem.
5. Hire a Property Manager
If you can’t seem to handle the situation on your own, you can hire a good landlord or property manager to look after the matters on your behalf. Property managers have experience dealing with bad tenants and difficult situations. They’ll help you come up with the best solution.
Dealing with bad tenants can be very stressful and frustrating. However, knowing that there are many things that you can do to deal with bad tenants whom don’t pay rent can help alleviate your stress to a significant degree.
Let ERG’s knowledgeable associate advisors help you . Get in touch with us today if you have any questions.
Author: Jivko Stefanov
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