When a Good Tenant is Late with the Rent
What do you do when a good tenant is a couple days late on her rent because she was laid off? While some landlords would evict their grandmothers over a late rent payment, others won’t evict tenants no matter what. Most landlords probably operate somewhere in between these two extremes.
Here are a few tips from some understanding landlords about what to do when a good tenant is late with the rent:
1. Talk to the tenant: Quick communication is key. Don’t wait, and don’t ignore the problem.
2. Consider the market: If you’ve had trouble filling your vacant rentals, you might give the laid-off tenant more time to come up with the rent. It’s still cheaper and easier than kicking her out and getting a new tenant in.
3. Find out the bottom line: Is the laid-off tenant going to receive unemployment benefits? If so, that’s a good sign. Is she planning on staying in the area and looking for a new job? Does she want a different lease, or out of the existing lease? Answers to these questions will help you make good decisions.
4. Consider offering a month-to-month lease: This gives you the most flexibility. If she finds a new job, you can always start over with a one-year lease.
5. Remember, she's a good tenant: If there have been no other problems, complaints, or property damages, you might be better off to just add your late charges and let her stay.
6. But, don’t be a pushover: Just because you are willing to work with this good tenant doesn’t mean she's in control. Be firm, be clear in what you will and will not tolerate, and back up your words with actions.
Every situation with every tenant and landlord is different. If working with a good tenant who is having a tough time works for you, by all means do it. If it doesn’t, you’re under no obligation other than fulfilling your responsibilities under the lease.