A dear friend of mine called me the other day to tell me that he has to get rid of his tenants. They have 
not paid the rent in over 5 months now - OUCH! This friend knows that he is much more tolerant than I am of a nonpaying tenant.
For me, if they don’t pay, they don’t stay. Period. It’s not rocket science.
It’s a business and I treat it like a business.
You do the math. If they don’t pay their rent, then the burden falls on me to come up with the money to pay the mortgage payment. I can’t just stop paying, just because they do, although I know many landlords that do.
I just finished an eviction. They had been with me for 15 months. The tenant’s wife left him, probably because he couldn’t get a job.
I didn’t get the rent, called him, then went knocking on his door, “Oh just give me till next Tuesday,” he begged.
“Well, did I hear that your wife moved out?” I knew she was the one paying the rent.
“Well yeah, but I’ll have the rent Tuesday, okay?”
“Are you working?” I asked. “Well no.”
“Are you starting a new job?” I asked. “Well, no.”
“Do you have someplace you can go to get the rent? Do you have family here?” I continued. “No.”
“Okay, so how are you going to have the rent for me on Tuesday? Do you have any of it right now?” I prodded, “Well, no, not really.”
“Well, then you’ve got to go. I'll give you till the end of the weekend to get out. You can go peacefully, or I’ll have to evict you.”
The tenant got most of his things out and then decided to get belligerent. He told me he had no place to go, so he was staying. Apparently, he had spoken to some of his friends, as he was getting ugly about it. "It will take you months and months to get me out." he hissed. I had never seen this side of him before, although I do know that money difficulties can change people.
This is not the first eviction I have done, nor will it be the last I ever do, unfortunately. It's the nature of the beast, with multiple rental properties. Luckily, though, they are few and far between. Thank goodness!
I served him with a 3 day notice. He didn't pay or respond. So, I filed the eviction papers and had my final judgement and writ of possession inside of a month. He left. His security deposit covered the loss of rent and there were no damages to the house. The house is back up for rent.
It's not a game for me. The burden of the monthly payment falls on me if the tenant doesn’t pay. It’s a business, and I treat it like a business.
Back to my friend of over 10 years, whom I love dearly. He has a heart of gold, to his detriment. I have helped him buy and sell over 18 investment properties. He is so lenient that he gets himself into a mess with tenants. He gives too much and is taken advantage of. I advised him years ago to stop buying rental houses. He knows I feel this way about him being a landlord, as I remind him that he is too nice. Tenants LOVE him! I really do not care to do his property management for him.
So, for his tenant living in his house, rent free for the past 5 months, time is overdue for getting them out! He is going to serve the 3 day notice. Don’t know where they’re going to go without any money. But, they always come up with something.
Landlords must cut their losses with a non paying tenant. Some are of the attitude that maybe they'll pay money they owe someday. The further they get behind, the less likelihood that the landlord will get their rent.
GET THEM OUT AND RE RENT TO A PAYING TENANT!
As a footnote, if you haven't done an eviction before and are unsure of how to proceed, you may want to contact a real estate attorney that specializes in evictions.
This article is authored by Sandy Shores, Melbourne FL Realtor, Brevard County Florida's Space Coast.
that for you
Sandy, I love the "business tone" you took in this post and with the tenant husband. You are not being cruel to these people, but factual. They have to be responsible or you will be for them. Go get them, and help that lenient friend landlord guy. Men are too nice sometimes. Train him how to do property management right.
Good post. In Massachusetts, the tenant rights legislation often causes the courts to protect the rights of tenants to the consternation of landlords who want to evict. We have strict procedures that must be followed and we have a mandatory 30 day notice to quit before eviction proceedings can even begin. I like the "business tone" that you used, but I'm afraid that if you showed up at their door after giving them notice to quit, this could be viewed as "harassment" in our state - which could then be used as a defense by the at-will (or squatter) tenant.
Best advise I can give landlords, is to let an attorney handle anything to do with an eviction. It keeps the emotions out and protects you, the landlord, from the tenant and the courts.
Hey Gary, I try to be as "middle of the road" and factual as I can be with these people. If they don't pay, they don't stay. I don't like to have to pay the mortgage payment when they can't pay the rent payment. Food off my table! I love my friend, and he has asked me for years to manage his properties - and I don't care to because I know about all his tenants. He is toooooooooooooooo nice. I think he needs to just sell the last of the properties he has left. He gets killed as a landlord. He always tells me that I am a real meanie!
Sandy, Nice job explaining the "business" aspect of this. Some landlords think their lot is to help out others. Not necessarily. Your friend with all the properties may do well SHOULD hire a property manager.
List and Sell (and manage properties as an investment) Gary @ RentonHomeFinder.com
Wow, 3 day notice! That is a pretty landlord friendly state. I always like to quote a Realtor friend of mine that has been a landlord for many years. He says "I give each of my tenants a free month of rent every year, whether I like it or not." Unfortunately, that is the way it is.
Hi Martin, I think here in Brevard County the courts are fair to both tenants and landlords. Our notice is a 3 day notice. 30 days there - OUCH - that would be terrible! I always go to my tenant's houses to pick up the rent. I told him to get out by Sunday, and then I served the formal 3 day notice to pay or leave. Then, unless they call me I don't usually go to see them again. I can certainly see where it would be considered harassment if you kept showing up looking for your money. Point well taken - let an attorney handle an eviction - thanks for passing the info along, I added that footnote to the post, giving you credit for it.
Hi Gary, My friend has his friends do his property management for him. Not a good option. He has asked me numerous times to do his management for him, but as I mentioned, I know his tenants, and I really don't care to be in that position with him. Good advice!
You sound like you have your business sense under control. Time is money when your dealing with tenants that don't pay their rent.
Hi Brian, Sounds like your friend has been a landlord for a good long time. So true. Sometimes we do give our tenants free rent, whether we like it or not. Often times it is a curse of the business, But, when their situation changes, and they lose a job, gotta jump on it, especially if we see they're not jumping on it (getting a job).
Hi Jennifer, In the tenant/landlord business, time is money. There is no question about it! We must stay on top of those non paying tenants.
Have you seen "Pacific Heights"?
Never ever gamble with a tenant whether when taking a lease or when a situation pops up. It rarely if ever pops up. Just took a risk 2 months ago knowing I was going to have 12 months of agony, but I was nervous about the home staying vacant another 4-5 months as the rental market stinks here. So I get what I wished for....a pain in the neck. 10 more months....but at least they are paying....so far; but one 30 day late and there will be a sheriff with zero negotiations save full payment of the remainder of the lease. We tend to learn the hard way....and then we forget and do it over again.
Hi Tim, No I have never seen Pacific Heights. But, I have certainly been in your shoes - wondering if you should take that difficult tenant. And in the past, I have and they were a pain in my butt. Funny, in the landlord business, we try so very hard not to make the same mistakes over again. You're not the only one who has done it, fearing that you'll have an empty for an over extended period of time! Their paying the rent is a very good sign...hang in there... I truly feel for you! Hopefully we don't forget what we did, and do it all over again.
Hi Sandy
There are a lot of horror stories about tenants not paying rent and in many markets the eviction are increasing. In almost all cases the tenants just can't catch up with the rent unless they get help.
Good luck and success
Lou Ludwig
Sandy, Renting out property is a business. Do other businesses let you go without paying for months with no consequences? Some tenants try and find that soft spot to their advantage.
You're right its not rocket science if they don't pay they can't stay. I'm in the middle of an eviction right now. It's a tenant who just moved into a house in October. Her monthly payment is $1300. She paid her deposit and both October and November rent. In December she paid $350. She hasn't been with me long enough for me to consider doing a payment plan. Not that I would anyway I'm sure that with her it would be a mistake. Like you said evictions are just part of this business. My biggest issue right now is trying to separate myself from the property management side of things after having been involved with it for so long. Sometimes I think the property management company we have is too nice. But they do a good job. I consider myself a pretty nice guy but there's no way I would let my tenants walk all over me and live in my house for 5 months rent free. That's unfathomable.
Sandy,
FIVE MONTHS??? Oh my gosh. That is horrible.
Ann Hayden in temperature dropping Wildwood, Missouri
Sandy, That's why I only have one rental property left. The landlord tenant laws have been changed to protect not only people in need but free loaders. It's only going to get worse now...
Hi Lou, It seems that it is becoming more difficult for some tenants to pay the rent. And we have also heard that evictions are up. I hope it's not a trend for 2009.
Hey Justin, Good luck on the eviction. It is a necessary part of the rental business - there's no question about it! Sometimes it must be done - it doesn't pay to be too nice in this business - you may get walked on. I wouldn't set up a payment plan with this brand new tenant either. If she can't pay the 3rd month in, forget it - you and I both know it will only go downhill from there. Cut your losses.
Hi Ann, My friend is soooooooooooooooooooooooooooooo nice, that it literally bites him in the butt, being a landlord. You know landlording is not for everyone!
Hi Paul, I know we are hearing alot of the same thing - that landlords are getting out of the business, as laws in some areas are becoming more strict. Here in Brevard County they are still somewhat favorable to the landlord - it's not too bad. However, as I have told my friend this, he must be on top of his difficult tenant situations. They should be out by now. If they can live there rent free, and someone is going to allow them to do it, then some are going to do it - landlord's fault.
A friend of mine told me he has had his rental house rented now for 6 months but he's only received 1 months rent. I said, you don't have it rented, you have it occupied! Get the money!
Hi Ron, Ugh - I hate hearing stories like that! I'm not that nice-if it were my tenant they would have been long gone. You gave him great advice - get the money!
Sandy,
It sounds like he should hire someone to help him be more assertive. I could not afford to carry a tenant for 5 months...
Ann Hayden shivering in Wildwood, Missouri
Hi Ann, He has asked me to do his property management, but I prefer not to. I've known him too long now, and know his tenants and houses too. No thanks. He can't afford to either!
Sandy,
I am sorry he is in over his head... It is too bad for him.
Ann
What an idiot. You let him go with out an eviction on his record and he refused. See what he can rent now with the eviction popping up.
Hi Ann, He is so good hearted. He'd give anyone the shirt off his back. Not always a great quality for being a landlord.
Hi John, I know, now it's going to be very difficult finding anything with that eviction hanging over his head.
Thanks Sandy for your perspective, I too am a landlord here in Brevard and have had to file several evictions, unfortunately. They usually take 30 days or so,uncontested, that is. I had a local attorney give me this advice: pay your tenants to leave. sounds strange but considering the cost, (approx $400 with service fees, etc) offfering the tenant a couple hundred bucks to disappear may be a bargain. Some folks can't get past the idea of rewarding bad behavior, but sometimes its simple economics. Most tenants fail to understand that an eviction hangs around for a long time and most of us landlords know how to check public records. If we all had zero tolerance on evictions ( i certainly do) then they(the tenants) may take the threat (or promise) to evict more seriously!
Hi Charles, Well, glad to know you, neighbor! Yes, I have heard of paying a tenant to leave. My broker had done this in the past. Considering evictions have gone from $118 to over $300 you're right, it may be a bargain!