Do You Have Tenants That Are Behind On Payments? Here Are Your Options
Tenants who pay their rent regularly are considered heaven-sent by real estate owners. They make your life easier and prevent conflicts for both parties.
However, some tenants constantly get behind their payment schedule. Some may just be forgetful probably because they have a lot on their plates. Sometimes, tenants get short on the budget. Nonetheless, it’s always the property owner who suffers.
Doing a background check before accepting a tenant could be one of the proactive ways for you to find out if the tenant is a responsible payer. On the other hand, if you currently have an irresponsible tenant, giving them an ultimatum would be the best thing to do. Otherwise, your business could be jeopardized if you keep allowing your tenants to skip or delay their payments for the most random excuses.
Here are some other remedies you can take in case of non-paying tenants:
1. Sell Your House
Selling your house can be an option if you have already exhausted your means, and have given several reprimands regarding your tenants’ late payments. To prevent your assets from getting diluted due to non-paying tenants, it’s best to sell your house.
However, you have to keep in mind that selling your property cannot be done overnight. It’s definitely not easy. Likewise, the legalities of selling the house have to be taken into consideration as well.
Luckily, some companies can help you ease the burden of selling your house. Listing your property alone for sale might already require extra effort on your part. The tenants who don’t want to move out yet might also become part of your problem. Nonetheless, seeking help from companies who can quickly sell your house on your behalf would be best.
Some companies can successfully work on your behalf even if you will not be able to provide the documents stating that you are the owner of the house. This is vital when you want to sell a house with tenants. Know that you can do so after accomplishing all the necessary steps and giving them proper notice.
Tenants who are not paying can disrupt your business. However, you have to keep in mind that these tenants, no matter how troublesome they are, have rights protected under the law.
2. Communicate Well
Tenants might have difficulty in budgeting their expenses. If they have mismanaged their money, chances are, they might not be able to pay the rent on time. To avoid this, discussing the rules or policies before they move in is advisable. This also helps the tenants understand the payment schedule and the repercussions of paying late.
Creating a contract and having all the pages signed by the tenant also protects you from any conflicts that might occur. This serves as evidence that you’ve discussed the policies with them and that they’ve agreed to the consequences. With this, you’re also creating a harmonious relationship with your tenants.
3. Notify Them With A Termination Notice
Knowing when to be lenient to your tenants and when to give sanctions would also prevent yourself from being taken advantage of. Surely, you have tenants who are responsible payers but still get behind the schedule. However, due to some personal reasons, the tenant requested you to extend the deadline for the payment, which is forgivable.
On the other hand, some tenants enjoy taking advantage of their landowner. These tenants don’t pay on time or most often than not, don’t pay at all. They incur debts with no sign of paying anytime soon. If you’re in this situation now, then, it’s best to bring out the terms of the agreement in your contract. Legally speaking, you can use it to request these tenants to move out of the house.
Each state has its own policy for the landlord and the tenant. Depending on your state, you have to know these policies and the rights of the renters to avoid any violations. One of the policies is that as a landlord, you can provide an eviction notice for tenants who refuse to pay despite being provided ample time to move out or pay.
4. Consider Payment Plans
Other landlords find ways and still give chances to renters who are not able to pay on time. Instead of asking these tenants to leave the premises immediately, you may also try to discuss other options available to them.
You may try to defer the full payment. This way, you can still get a certain amount from them, despite incomplete. Even if it doesn’t amount to the price agreed upon, the money that you’ve collected from these renters can be used to cover the expenses needed in the maintenance of your property.
Reminding your tenants to pay on time is not easy. Some tenants know their responsibilities and pay on time without being asked to. While some, despite countless reminders, would still fail to do so. Regardless, talking to your tenants and setting out the rules clearly would help both parties. These boundaries can help prevent the tenants from being overly complacent.
Having a contract and letting your tenants sign it would give them the impression that you’re serious about the repercussions of a breached agreement. Thus, it also lessens the burden on your part, as a landlord, in collecting the payment.