Tenant stopped paying rent

[mom-from-missouri]

I have a tenant, who has stopped paying rent. This may sound stupid--but I DONT want them to move out--I'd rather them pay partial rent than to loose them.

Why? Several reasons...

1. while they are living there, they are paying the utilities, and we are going into winter--this will save me $500 a month by not having to pay the utilities in a vacant house.

2. This house won't re-rent quickly. It is in a college town-people are already in their housing for now. The "hot time" to rent is in June-July area, where they are securing housing for August. I've had a renter leave in Dec before (military) and the house sat empty until the following June.

3. They have been there for 4 years--good, until this summer, when the mr got hurt.

I'd like to send them a letter, but am confused on the wording. My first draft made it sound like I was a push over (and I don't want to be taken advantage of). My attempt to locate a sample letter on line sounded so harsh that we though we thought they would read it and run.

Any suggestions??

[Petunia 100]

I have a tenant, who has stopped paying rent. This may sound stupid--but I DONT want them to move out--I'd rather them pay partial rent than to loose them.

Why? Several reasons...

1. while they are living there, they are paying the utilities, and we are going into winter--this will save me $500 a month by not having to pay the utilities in a vacant house.

2. This house won't re-rent quickly. It is in a college town-people are already in their housing for now. The "hot time" to rent is in June-July area, where they are securing housing for August. I've had a renter leave in Dec before (military) and the house sat empty until the following June.

3. They have been there for 4 years--good, until this summer, when the mr got hurt.

I'd like to send them a letter, but am confused on the wording. My first draft made it sound like I was a push over (and I don't want to be taken advantage of). My attempt to locate a sample letter on line sounded so harsh that we though we thought they would read it and run.

Any suggestions??

I suggest something like "We are aware of your current difficulties. How can we structure your rent payments so that you can eventually become current?"

Or, if you are willing to forgive unpaid rent, "How can we structure your rent payments so that you can stay in the home?"

Do you know for certain they are current on the utilities?

[hamchan]

How long has it been since they've paid? Would you be wanting them out one the rental market gets better for you?

Maybe just explain that you would prefer that they stay there, and you understand that their financial situation has changed, so you'd like to agree upon a new rent amount temporarily. Maybe throw out a number that will work for you and see what they say?

[mom-from-missouri]

They have not paid all year. But, its not like I didn't let it go--they normally pay 6 months worth at a time, and 3 months behind and 3 months ahead. They have done this because the wife gets school grant money twice a year--usually in late Dec and again in mid July. They last paid in Dec of last year, and that covered up thru Feb of this year. The July payment didn't come because he got hurt in June.
I have checked with the utilities, and they have paid them. It is set up that if they are disconnected for non-pay, the electric automatically comes into my name, so the house won't freeze.

[riverwed070707]

I wouldn't write a letter, I'd call them. Confrontation is hard but it will also be harder for them to be dishonest with you in person. Be personable and understanding to what their going through and work through a solution that works for both of you. Maybe you charge them half rent (each month! not semi-annually!!) until they get back on their feet and then they pay an increased rent until they are caught up. Make sure whatever you agree on they genuinely feel they can live up to. If they can't, it might be best to cut your losses and move on.

[97guns]

once a tenant falls behind its very tough for them to catch up, often times it is easier for them to move on than to catch up several thousand in back rent.

i would make contact and see if they will leave on their own, if they wont then i would start the process right away, it will be another month if you evict them through the legal process

[hamchan]

once a tenant falls behind its very tough for them to catch up, often times it is easier for them to move on than to catch up several thousand in back rent.

i would make contact and see if they will leave on their own, if they wont then i would start the process right away, it will be another month if you evict them through the legal process

She doesn't want to evict them because they are paying the utility bills and the house will sit vacant for months if they leave.

[rennigade]

What kind of home costs $500/month in utilities when no one is living there? Im guessing since this is for college students it isnt a mcmansion? Id give them the boot asap.

When I was in school we rented an entire house and all of our utilities combined werent close to $500/month...and that was with 5 people who didnt conserve anything.

[Joan.of.the.Arch]

Perhaps you can squeeze a couple drops of blood out of this turnip.

Do the the tenants have any skills to barter? Maybe they know how to install a new water heater, make some window quilts for your house, clean out a drainage ditch that has been silting in, shovel manure to the garden, fork over the garden, dig holes for tree planting, play music at a party, you know--whatever they can do that you would like to get done. Of course you'd need to be very careful that they really can do the jobs correctly.

[97guns]

She doesn't want to evict them because they are paying the utility bills and the house will sit vacant for months if they leave.

yes, i saw that in the opening post but any landlord should not think like this, that is how you end up loosing thousands more.

landlording is nothing more than a business, do you hand out free lunches if you have a restaurant?

evict and take your chances filling it with another tenant, there are many incentives you can give to fill it. 2 months will turn into 4 then 6

[Augustine]

landlording is nothing more than a business, do you hand out free lunches if you have a restaurant?

Business is business. What you are doing may sound noble but don't let your emotions get in the way when it comes to money.

Just because the house won't re-rent quickly does not mean that you should accept the situation as it is.

Look at it this way. If your tenants get more problems and are totally unable to pay you, by next June you may end up paying their utility bills yourself and that harsh letter will certainly come handy.

For a start, you can give them a 'polite reminder' making reference to the lease agreement and letting them know that they are actually in arrears.

[autoxer]

And as rennigade said, the utilities should be far less when the house is vacant. Without anybody in the house, you won't be using water, electric will be minimized and you don't have to keep the house at a comfortable 70°, just warm enough so the pipes don't freeze.

If you want to be charitable towards them, that is fine, just don't convince yourself that they are saving you money, because that is far from true.

[dczech09]

I agree with 97guns.

Either the tenant pays up right away and they stay, they leave on their own, or the eviction process starts.

OP is concerned about not having a paying tenant for months... NEWS FLASH: they have not had a paying tenant for months! Allowing the tenant to stay even this long without paying was a bad idea as it sets a bad precedent.

The apartment that I live in has one simple rule- you pay your rent on or before the 1st of the month. If you wait until the 2nd, an eviction notice is sent. Pretty simple- it means pay your rent on time!

Being complacent will not do you any good. You do not need to be nasty about it, but you need to be assertive. A tenant staying in your house and not paying their rent is costing you money.

Even if they pay, you should consider getting rid of them. The fact that they are falling this far behind is a sign that they have financial problems and are not a good tenant. Good tenants pay on time. Period.

After they are evicted- they still owe what is past due. You may need to get legal counsel for that if they refuse to pay.

Ultimately, this whole situation has gone way too far.

[kyoko]

I have been through similar situation in NW NY, where the winter is so severe you don't want to have your house vacant!

But I agree with many of people here. I understand for students, major income source is from the overage of student loans which come to them every three months or so... but they shouldn't decide when to pay rent. Regardless they bring 6 months rent in one month, it is a bad cycle and they know they can get away with it.

I think you should send them a 3 day notice... pay or leave (you can google, and I believe there are plenty of sample letters). Even though they leave without paying, you could still bring them the small court to recover the unpaid rent. If you don't want to deal with it, you can seek the RE attorney. They will simply take some % from the money as you recover.

[delemag]

in which state is that ?