furloughed tenant (by Beth [GA]) Oct 1, 2013 2:28 PM|
furloughed tenant (by Txmike [TX]) Oct 1, 2013 2:31 PM
furloughed tenant (by Brad [IL]) Oct 1, 2013 2:36 PM
furloughed tenant (by S i d [MO]) Oct 1, 2013 2:50 PM
furloughed tenant (by Rodney [PA]) Oct 1, 2013 3:58 PM
furloughed tenant (by Rodney [PA]) Oct 1, 2013 4:01 PM
furloughed tenant (by Mike45 [NV]) Oct 1, 2013 5:15 PM
furloughed tenant (by Nellie [ME]) Oct 1, 2013 5:28 PM
furloughed tenant (by K [MN]) Oct 1, 2013 6:18 PM
furloughed tenant (by tryan [MA]) Oct 2, 2013 5:17 AM
furloughed tenant (by frank [NY]) Oct 2, 2013 5:21 AM
furloughed tenant (by Chris [CA]) Oct 2, 2013 4:14 PM
furloughed tenant (by gevans [SC]) Oct 2, 2013 6:09 PM
furloughed tenant (by Larry [NY]) Oct 3, 2013 1:20 PM
furloughed tenant (by Fuzzy [NY]) Oct 3, 2013 1:41 PM
furloughed tenant (by frank [NY]) Oct 3, 2013 1:56 PM
furloughed tenant (by Spacey [TX]) Oct 3, 2013 2:14 PM
furloughed tenant (by Greg [VA]) Oct 3, 2013 2:45 PM
furloughed tenant (by p m h [TX]) Oct 3, 2013 6:03 PM
furloughed tenant (by BRAD 20,000 [IN]) Oct 3, 2013 6:31 PM
furloughed tenant (by solutionguru [VA]) Oct 4, 2013 5:20 PM
furloughed tenant (by Greg [VA]) Oct 4, 2013 5:40 PM
furloughed tenant (by Kyle [IN]) Oct 4, 2013 6:30 PM
furloughed tenant (by Nellie [ME]) Oct 4, 2013 7:02 PM
furloughed tenant (by Rick Lutz [NM]) Oct 5, 2013 12:49 AM
furloughed tenant (by solutionguru [VA]) Oct 5, 2013 6:50 AM
furloughed tenant (by Beth [GA]) Posted on: Oct 1, 2013 2:28 PM
I have a tenant that has been furloughed because of the government shutdown. She is on a bi-weekly payment plan and her next rent payment is due 10/11. She has been there 15 months with no problems.
I haven't heard from her yet about not being able to pay on the 11th but expect to by tomorrow. How would handle this situation?
furloughed tenant (by Txmike [TX]) Posted on: Oct 1, 2013 2:31 PM
I would begin eviction proceedings as soon as rent is late. I am sure they will pay though, as they should have an emergency fund to pull from
furloughed tenant (by Brad [IL]) Posted on: Oct 1, 2013 2:36 PM
What would the bank do if you can't pay the mortgage? --50.203.xxx.xxx
furloughed tenant (by S i d [MO]) Posted on: Oct 1, 2013 2:50 PM
It's up to you, but the pertinent questions I'd consider are as follows:
If she had worked for a civilian employer and was furloughed, fired, laid off or the business closed its doors, would you still expect rent to be paid? If yes, why is being a federal worker any different?
If she goes into other businesses and tries to utilize the goods and services they provide, will they allow her not to pay? If they demand payment, why don't you?
It really boils down to a question of being prepared. None of us are guaranteed that the job and income we have today will be there tomorrow, so the wise person sets aside savings to cover life's little hiccups. Call it an emergency fund, a rainy day fund, grandma's cash tucked under the mattress, whatever...
The foolish and their money are soon parted. Truer now than ever.
She should have friends, family, church, community organization or someone else who can float her a loan if she's trustworthy. You are not her bank. If she doesn't have access to any of these resources, that says volumes about your tenant's (lack of) character that they have no relationships built on trust.
So I'd do what I normally do. If not paid today, tomorrow I would text "Rent?" If no response by the 4th, I'd make 1 courtesy phone call and leave a message saying "rent is not paid and I need to hear from you in the next 24 hours to avoid any potential issues." If no response by the 7th, I'd file eviction. Modify as needed if your state requires a "Pay or Quit" on the front door or some other type of notice.
furloughed tenant (by Rodney [PA]) Posted on: Oct 1, 2013 3:58 PM
Agree 100% with Sid.
furloughed tenant (by Rodney [PA]) Posted on: Oct 1, 2013 4:01 PM
If you've lived beyond your means, whose fault is that?
furloughed tenant (by Mike45 [NV]) Posted on: Oct 1, 2013 5:15 PM
I hate to say it, but I don't fully agree with Sid.
This furloughed employee will soon be back to work and will be given back pay for all the furloughed days. It is not like a civilian situation, where the money is gone -- this is just a situation where the paycheck is being delivered late, through no fault of the tenant.
Yes, the tenant should have some savings, a nest egg and cushion. But the tenant will be getting all of the back pay, so I would "work with" the tenant.
furloughed tenant (by Nellie [ME]) Posted on: Oct 1, 2013 5:28 PM
Mike, if they are hourly employees, though, they will not get the opportunity to work those missed hours. Can they collect unemployment? --70.16.xx.xxx
furloughed tenant (by K [MN]) Posted on: Oct 1, 2013 6:18 PM
It depends on the state whether they can collect unemployment and it is up to congress as to whether they will get back pay. If they are a good tenant and you think they could be a long term tenant that might affect your decision. The biggest cost to our business is time and money spent finding a good tenant. --96.42.xxx.xxx
furloughed tenant (by tryan [MA]) Posted on: Oct 2, 2013 5:17 AM
I had an IRS employee/tenant thru the last shutdown. It was a PAID VACATION ... she slipped a couple weeks then caught-up in one lump sum when the vacation pay landed.
Serve your notices ... but I would expect the same outcome. --24.128.xxx.x
furloughed tenant (by frank [NY]) Posted on: Oct 2, 2013 5:21 AM
For markets like mine that take 6-8 months to remove a tenant, I would/will work with the tenant. What are the judges response to a tenant that has been furloughed? in my blue state, "it is ok, make a payment plan with landlord and catch up when the govt is running. "
What is more scarier is local govt not paying section 8. Some folks whole portfolio goes in the trash.
furloughed tenant (by Chris [CA]) Posted on: Oct 2, 2013 4:14 PM
Evict - and enjoy a vacancy lasting till Spring? No, for once I would be working with such a tenant! I've reacted in anger, then I had a long time to repent that foolishness. (It depends on the type of tenant, of course, me assuming this is a top notch tenant who likely will have reserves and not live paycheck to paycheck).
Partial payments at worst? Have someone keep the house heated! --1.4.xxx.xx
furloughed tenant (by gevans [SC]) Posted on: Oct 2, 2013 6:09 PM
I have one furloughed tenant. I'm leaving him alone. He's a good tenant and I expect he will get his back pay before I could boot him and find a replacement.
If he doesn't... I gambled and lost. But I'm willing to take the chance. --74.222.xxx.xxx
furloughed tenant (by Larry [NY]) Posted on: Oct 3, 2013 1:20 PM
For the last 25 years I always worked with a tenants who had been in good standings. To date I haven't been burned. Sometimes it pays to have a little compassion. --130.199.x.xxx
furloughed tenant (by Fuzzy [NY]) Posted on: Oct 3, 2013 1:41 PM
Where is the guarantee that the furloughed government employee will ever get the back pay? Certainly they should, but who knows what kind of games Congress will try next? Layoffs? Elimination of positions and even entire departments? I agree that there are situations where we should try to work with delinquent tenants, but I just don't trust Congress. And, I totally agree with Brad about the mortgage. --184.74.xxx.xxx
furloughed tenant (by frank [NY]) Posted on: Oct 3, 2013 1:56 PM
Who will rent the apartments if we eliminate
all folks on public assistance
military and govt employees
any employee who works for a company with govt contracts
any employee of a company that has been bailed out by the govt
I guess I'm in good shape, I rent to wall street guys/gals. Oh wait, the govt wants to be in charge of them too. --108.54.xxx.xxx
furloughed tenant (by Spacey [TX]) Posted on: Oct 3, 2013 2:14 PM
So I am a federal employee in addition to a LL. I will point out that we are talking about a hypothetical situation... the tenant is still current.
Also worst case she is still getting a check on het next normal payday though it may be about 2/3 of its normal amount. I don't know about your areas but around here banks are all offering furlough loans to their normal customers. WWith normal reserves I bet she still pays on time. --98.195.xxx.xxx
furloughed tenant (by Greg [VA]) Posted on: Oct 3, 2013 2:45 PM
As long as the tenant has possession of the property, the landlord is in compliance with the lease (assuming all else is in order). Give the tenant the standard notice and proceed.
There is no guarantee that any federal worker will be paid for the time off, and, coming from a person who works in DC, there is little reason to assume this will be settled quickly.
Moreover, were are three days into the shutdown -- anyone who becomes destitute in that time, considering that most of the federal workers were just paid, is a tenant not worth keeping.
Give the standard notice, and work with the tenant to secure alternative funding but move on at the same time. It's not the landlord's fault the tenant is in the situation s/he is in, and the landlord is not a social-housing provider.
We all know there are *** many *** other sources of income and support for times like these (including many government programs) -- don't take on that burden yourself.
I've been through these sorts of situations many times -- and ever time I bent my own rules, the loser was always me. ALWAYS.
Be sure to be exceptionally careful about accepting any form of partial payment and do not waive any late charges.
This is business, and nothing else. --69.255.xx.xxx
furloughed tenant (by p m h [TX]) Posted on: Oct 3, 2013 6:03 PM
everytime we have gone through these "furloughs" the govt workers have been paid for not working. the house will be voting on this again tomorrow and guess how they will vote...yes. so she has not paid rent. she is using that as an excuse. so post the pay or quit, raise the rent and find another renter. --97.94.xxx.xxx
furloughed tenant (by BRAD 20,000 [IN]) Posted on: Oct 3, 2013 6:31 PM
Beth, Great question!
My advice is to stick to the lease. You can always delay eviction at your own choice.
Send proper late notices on schedule. Do NOT let extra days pass or slack off.
Keep the proper business and legal wheels turning
You have no guarantee on how this will turn out.
Too many times we have been patient with residents who with overdue rent, with the promise of insurance checks, tax refunds, money from parents, etc only to have them use that lump of cash for a new car or deposit on another house, leaving us high and dry.
If things go sour you will not lose time.
If you choose you can be flexible and work with them.
Yes, just like any other resident with temporary jobs problems we would work with them. "Work with" does not mean to sit idly by. It means THEY are actively doing everything they can and communicating with us.
Part time jobs, borrow, parents, unemployment, etc.
Big lesson for us all:
- save an emergency fund
- everyday the govt gains more control of persoanl income, INCLUDING my rent income. --67.175.xx.xxx
furloughed tenant (by solutionguru [VA]) Posted on: Oct 4, 2013 5:20 PM
This is not a matter of a delinquent tenant. And there are some legal complexities.
1- You may not be able to evict a furloughed tenant for missing one rent payment due to some statutory protections for them.
2- In Virginia it takes 6 weeks to evict, (ok give the required notices if you feel you must. But in this economy how long will you have a vacancy?
3- Again, this is an unusual situation if you do not have a contingency reserve top cover a missing rent payment you do not belong in this business.
4- If you need every penny of rent to keep your rental property afloat you do not belong in this business.
5- The Military and Federal and State employees are the best tenants you can have.
My opinion is give them some space, let them know about your concerns then let them be. They have other expenses as well. 17 years ago when this happened, a law was passed prohibiting interest, late payments ,and evictions of furloughed Fed employees and contractors. I suspect the same will happen this time.
Explore your own asset options. If you do not have emergency reserves, "Shame on you, you do not belong in this business" !
furloughed tenant (by Greg [VA]) Posted on: Oct 4, 2013 5:40 PM
"Some statutory protections"? Would you please elaborate on what they may be?
And, how do you come to the conclusion that it takes six weeks to evict in VA?
The issue here is not the landlord's financials, the issue is paying rent timely. So, please keep shame out of the discussion. --69.255.xx.xxx
furloughed tenant (by Kyle [IN]) Posted on: Oct 4, 2013 6:30 PM
I may be able to pay all my expenses without collecting any rent for months or even years, but that doesn't mean I should. Who knows when the federal workers will go back to work? And there is no guarantee they will be paid for the days they spent not working. I am curious about the law mentioned above preventing evictions, etc. from the last shutdown, I cannot find any information about this anywhere else. Does anyone have a source they could cite? --50.129.xx.xxx
furloughed tenant (by Nellie [ME]) Posted on: Oct 4, 2013 7:02 PM
Got my NG active duty tenant rent today (within the time frame they usually pay). Hopefully it won't be an issue next month. --70.16.xx.xxx
furloughed tenant (by Rick Lutz [NM]) Posted on: Oct 5, 2013 12:49 AM
Furloughed by a leadership failure of Congress? 46 million fellow Americans living at or below the poverty level. We never leave an American behind. I will carry them with my own personal contingency fund That I set aside yearly for each rental unit; 64 total. I have no desire to see America become a ruthless version of Wall St. If my fellow citizens and tenants through no fault of their own are cut off from income I will not kick them to the curb. What would you want if your bank sold all your paper and you had to come up with all cash or lose everything? How would you like to be treated by your mortgage lender? Rewarded for your years of honesty and loyalty or thrown under the bus? I work with my money sources and my tenants because I usually am the one who helps them move from renter to owner even if I have to carry their note for a while. --63.231.xxx.xx
furloughed tenant (by solutionguru [VA]) Posted on: Oct 5, 2013 6:50 AM
RE: Rick Lutz- BRAVO !!! --173.66.xx.xx