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Tenant stopped paying rent

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  • #16
    Act clever

    It is good that they are paying the utility bills but as you are not getting the rents you are losing on the money. But if there is no rent on the property then you have to devote your time & money for the maintenance. So even if the rent is not coming, the property is being looked after in a good way as well the utility bills are not to be paid by you. Also you can approach the insurance companies to find out if they have any policies which can cover this type of problems.

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    • #17
      Originally posted by mom-from-missouri View Post
      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??
      Have a heart to heart talk with them and figure out their current situation. See if they are trying to avoid paying because they are planning on moving and want to avoid rent or if they still want to stay. Once you figured it out just try to figure out a payment structure in which they are able to pay. Maybe give them a month off so they can generate more capital and start paying you again (its better than the alternative of having to get them to leave and finding someone new at this time.) But if it seems that they can't pay you back in the future because of a new situation in their lives, it seems you will have to use the boot on this one.

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      • #18
        Originally posted by Rogerthat11 View Post
        Have a heart to heart talk with them and figure out their current situation. See if they are trying to avoid paying because they are planning on moving and want to avoid rent or if they still want to stay. Once you figured it out just try to figure out a payment structure in which they are able to pay. Maybe give them a month off so they can generate more capital and start paying you again (its better than the alternative of having to get them to leave and finding someone new at this time.) But if it seems that they can't pay you back in the future because of a new situation in their lives, it seems you will have to use the boot on this one.
        Who cares if they are moving and want to avoid rent? That is completely irrelevant to the discussion. The fact is that they are behind on rent. They breached their contract with the OP. That is grounds for eviction, which should have been done a long time ago.

        The current apartment that I rent at does not tolerate any late payments whatsoever. If I am even 1 day late, eviction! And honestly, that is the way it should be.

        Evict the tenants and bring them to court for the difference owed. That way, a court order will be placed that they HAVE to repay all of the past due rent that is owed at this point. Once you do that, set up a payment plan with interest and penalties for non-payment.
        Check out my new website at www.payczech.com !

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        • #19
          You can contact an attorney and take his help in this regard. He will help you in drafting the letter.

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          • #20
            Took 90 days, but they have now received an eviction notice. They are to be out Jan 31.

            Someone above stated these were college students and it wasn't a mcmansion....These are not college students. This is a family in my former home, almost 4000 square feet. Its a very nice home in a very nice neighborhood.

            Since it is located in a military and college town, it is hard to find families to rent--I don't want it to be full of college students, in fact, the hoa for the area forbids more than 3 unrelated individuals living in a leased home to prevent the frats and party houses.

            Also, since it is a college town, a vacant home is a target to be broken into and destroyed or torn up. I wish it could be seen from neighbors, but it isn't visible from the neighbors home.

            I can't shut the utilities off during the winter, as I will be going up to check on it and probably spending the night when I do. The home is all electric, so I will have water and electric to pay. If water is on, you have to also pay the sewer. And, the hoa doesn't let you drop the trash service, even if there is none. I will also have to put the phone back on for the alarm system. So, yes, in the winter, the utilities will be close to $500 if it is cold. That is for water, sewer, phone, alarm, trash and electric.

            This is why I stated I would rather have someone in there for free, than me paying the utilities. In addition, my insurance will go up because the house is unoccupied--at least it has in the past when I reported it as vacant.

            After they are out, I will be going to court to sue for back rent. Providing I win (and I should), I will then put in for a garnishment of wages....but, it won't do me much good--he hasn't worked in months since falling off a scaffolding and since has also had a heart attack. She is a full time student and just works odd jobs here and there now.

            But, I am wondering this......How can I report this to the credit bureaus??? Or, can I??? I hate to see another landlord get burned by them.

            They were good when they moved in. Since then, I have done a public record search and found they have had a car that has been repossessed, failure to pay the hospital and several credit cards.

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            • #21
              Originally posted by mom-from-missouri View Post
              Took 90 days, but they have now received an eviction notice. They are to be out Jan 31.

              Someone above stated these were college students and it wasn't a mcmansion....These are not college students. This is a family in my former home, almost 4000 square feet. Its a very nice home in a very nice neighborhood.

              Since it is located in a military and college town, it is hard to find families to rent--I don't want it to be full of college students, in fact, the hoa for the area forbids more than 3 unrelated individuals living in a leased home to prevent the frats and party houses.

              Also, since it is a college town, a vacant home is a target to be broken into and destroyed or torn up. I wish it could be seen from neighbors, but it isn't visible from the neighbors home.

              I can't shut the utilities off during the winter, as I will be going up to check on it and probably spending the night when I do. The home is all electric, so I will have water and electric to pay. If water is on, you have to also pay the sewer. And, the hoa doesn't let you drop the trash service, even if there is none. I will also have to put the phone back on for the alarm system. So, yes, in the winter, the utilities will be close to $500 if it is cold. That is for water, sewer, phone, alarm, trash and electric.

              This is why I stated I would rather have someone in there for free, than me paying the utilities. In addition, my insurance will go up because the house is unoccupied--at least it has in the past when I reported it as vacant.

              After they are out, I will be going to court to sue for back rent. Providing I win (and I should), I will then put in for a garnishment of wages....but, it won't do me much good--he hasn't worked in months since falling off a scaffolding and since has also had a heart attack. She is a full time student and just works odd jobs here and there now.

              But, I am wondering this......How can I report this to the credit bureaus??? Or, can I??? I hate to see another landlord get burned by them.

              They were good when they moved in. Since then, I have done a public record search and found they have had a car that has been repossessed, failure to pay the hospital and several credit cards.
              If they were good tenants and turn bad because of medical problems and other bad lucks, then why sue them? You got what you want, them to move out.

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              • #22
                Originally posted by emanon1501 View Post
                If they were good tenants and turn bad because of medical problems and other bad lucks, then why sue them? You got what you want, them to move out.
                Because they had a written contract stating they could live in the apartment in exchange for money. Its as simple as that. Not the landlords problem what kind of financial trouble they ran into. The tenant agreed to pay to live there...now they have to pony up!

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                • #23
                  Just because he got sick, that doesn't excuse them from paying their bills or release them from a legally binding contract.

                  What about the wear and tear on my home? What about the paperwork I had to file at my own expense to start the process to get them out?

                  What about the fact that I could have had someone else in the house that WAS paying rent.

                  If your employer gets sick, and quits paying you would you accept that?? You would get a different job....ok, so now you have a different job, so why sue your employer to make good on your past pay???

                  I can tell you for a fact, having done another check on them, that they now owe the IRS, state, and credit cards, and an auto dealership. You think they will excuse them because they got sick?? NO. So, why should I?

                  If that is your line of thinking, why do we pay hospitals?? Typically we only go there when we are hurt or sick....yet, the hospitals and doctors still expect payment.

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                  • #24
                    i never let a tenant dig such a deep hole that it makes it worthwhile for me to take to court. for future endeavors, if you start eviction right away you minimize your losses, cut them loose and move on

                    i have a tenant that is $350 behind, has been for 2 months now. if he does not make it up on the 2nd of january with his rent i will serve him, no more games with this guy, you give any tenant an inch and they take a foot.
                    retired in 2009 at the age of 39 with less than 300K total net worth

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                    • #25
                      Guess I have been lucky....in 30+ years first time I have had a problem.

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                      • #26
                        Originally posted by mom-from-missouri View Post
                        Guess I have been lucky....in 30+ years first time I have had a problem.
                        Wow, thats a heck of a track record. From everyone Ive spoken to who does rent, they've at least ran into some issue where a tenant trashes the house or they dont pay rent...youve been really fortunate.

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