If you have tenants that have demonstrated on time rent payments for at least two years and then for whatever reason, begin a pattern of struggling to pay rent each month, how do you deal with these tenants? Do you begin the eviction process or do you communicate with them and try to work something out.

In these situations, are there any alternatives to eviction?

At the risk of sounding like a broken record....

... I always follow the same process. This ain't Mayberry and I'm not Sheriff Andy. With that in mind.

ALL TENANTS ALWAYS... have until the 7th day late to pay or get on an arrangement I approve**. So if rent is due the 1st, I file on the 8th, or if it's a weekend/holiday I'll file the next day courts are open.

** The only arrangement I will approve is weekly payments, starting within the next 24 hours from the time we chat. So if rent is $1000, I divide by 4 and they pay that amount plus the added late fee every week until they are fully caught up AND can pay the next full rent installment due. Any deviation from this for any reason or no reason results in immediate filing for eviction.

I used to jump through hoops and agonize over crap like this until I realized every instance of non-payments or late payments with every tenant was the same game but we just changed the names of the players. Once that sunk into my skull, I realized that when I develop a process that fits my desires and follow it to a "T", my life got infinitely better and my tenants started paying on time. Everyone got a win out of this.

To summarize: K.I.S.S.

Sid,

In the past, with other similar tenants, I have tried splitting the rent in half and each bi-monthly payment being tied to their payday. This system worked out fine for about 3 months until they got accustomed to it and then they started paying late with the bi-monthly amount.

RB,

this is actually a timely post for me.

I have a tenant that I have had since 2017 and I tried to be nice and let her split the monthly payment with no late fee. This worked for several years. This month her ACH bounced so now I am wording my response letter. I think I am going to tell her she needs to get the account current, there is no more split payments, and late fees will be turned back on for next month. Then the usual wording about eviction etc.

Tough call... if they are new, then I don't typically give them any grace and hammer them. If they are "talking" (and I don't mean giving me a story but mean they are ACTUALLY having a conversation and will only be a few more days late - like won't have the payment until the 7th or something) then I'll hold off. After that... I start the eviction.

In the PAST (and somewhat current) I will give them some grace if they are longer term (again, TALKING to me) but most are ending up in evictions "now". It's tough... times have changed in the past few years (literally) and if you don't move quick (at least here, in NY) you can be a few months or more before you can get them out. You are better off just starting the process. Honestly, if you do and they do end up paying, then you are out the money of starting eviction. If you don't... then you are out the money you paid (and are paying) for the eviction PLUS the rent lost and most likely clean-up, etc.

Given that extra information, and assuming they have previously been taking good care of the house in addition to paying on time:

I would take what I consider a balanced approach. I would talk to them; what happened; what are you doing about it; who do you have who can help you financially in the meantime?

If the answers are responsible & reasonable ie: she's getting a second job but doesn't have her first paycheck yet; or Relatives are sending big bucks- check should arrive tomorrow, dropping the platinum Disney channel, selling some things, etc, I would write up an agreement for them to pay the arrears while still paying regular rent on time. And I would probably ask them if they are aware of how to apply for assistance like SNAP, and where the food bank is, etc. And, I would hope they can get it together and catch up, because I don't want to lose otherwise decent tenants who truly just fell on hard times and do not want a turnover. Plus, it looks very good to the judge to have tried to work it out this way.

I just had a court date on Monday for the brother of your tenant, he's on the way out. He's been a good tenant for 3.75 of the 4 years he's rented from me. Like Sid, I have a hard cut-off at the 8th. I post the cure or quit on the 5th, if they haven't paid by the morning of the 8th then I file the eviction. If they push up against this limit repeatedly then I will non-renew.

1) I continually communicate my rules to tenants once they are late. Late fees will get you until the 8th at which point I file and will not allow you to stay under any circumstances.

2) After I post on the 5th they get a text that basically says you are welcome to borrow from friends or family, the TX statutes do not allow me to garnish wages so I can not let you stay so it's your choice either pay at least half or be moved out by the 8th. Once I file with the court you will not be allowed to stay.

3) If they can't pay at least half by the 8th then they have burned all their other bridges. If you think about how many options there are for unsecured loans in today's world that is a pretty significant feat. If none of the loan sharks will loan them money then why would it be a reasonable thing for me to?

And by the way, don't assume that since they went silent that their phones have been disconnected. They are just as likely to be using that as a delay tactic which is why you need a policy that you stick to that doesn't require their response.

More directly to your eviction alternatives question. That to me centers around communication. If I do a good job of communicating the rules and more importantly the consequences of breaking the rules, particularly when you get that first indication they are late then the majority of reasonable people will comply by paying if they can or moving out if they can't. To me that is a reasonable solution and better for everyone, thus an eviction alternative. It doesn't work for the lower-end tenants, those with an entitled attitude, or those with no other options but for reasonable people it works reasonably well. I will even wait until after work to deliver a cure or quit so that I have an opportunity to emphasize again what I need them to do. I'm pretty good with the "Stern and unbudging" voice.

Years ago in materials from Jeffrey, he suggested making a list of available places that you could provide tenants when they need temporary assistance to get back on their feet, i.e. churches, and those DJ mentioned, etc.

It may not help now, but something for all of us to think about when tenants fall on hard times.

Depends on the situation. I have a family that had rented from me for nearly 5 years, on time with just a few slightly late payments. She had double hip replacement surgery and was out of work for a couple of weeks. Then she got covid. She reached out proactively with a detailed plan for getting caught up. I agreed to it and she kept her part of the bargain. They still rent from me.

Another tenant switched jobs, wasn't getting enough hours, started applying for jobs, and told me (didn't ask) that he would pay me what he could when he could. I hear a whole lotta "hoping" in his problem-solving. He got a three-day notice and moved out just ahead of the court filing.

Roy,

My STRONG advice: in today's economy a LL CANNOT afford to allow a renter to fall behind. You will NOT get your money and lose months of rent.

The old phrase was "if they fall 60 days behind you won't see any money". That changed to 30 days.

*I* now say "if they fall a WEEK behind you are in trouble".

I get nervous when LLs use the description "A good renter". GOOD means PAYS ON TIME, so a late or non-payer is no longer GOOD.

LLs must realize there often comes a time when your good renter's life has changed and they are no longer good.

If you took a fresh application you would have to deny them for lack of income.

Good LLing/Managing is making the tough decisions.

Back when I would "work with" people I lost THOUSAND$$$ and our stress level was at 11!

When I needed to survive we changed - treat everyone exactly the same. Catch up in 3 days for face sheriff eviction/lockout. I now allow 24 hours.

AMAZINGLY those "work with" cases instantly PAID IN FULL.

And autodraft makes a huge difference.

Anyone who tests with "I can pay next week" is automatically moved to weekly.

BRAD

My current alternative:

If they will move out within 7 days and sign paperwork agreeing to move out and pay $_____ I will not go thru court and it will not appear on their public record which makes it very difficult to find a new place AND hits their credit, which can also affect job hunting.

I add $1000 for cleaning with the promise to deduct any cleaning they do. (They don't do any!)

My court now seals evictions so really nothing would show on their records or credit report anyway.

I have 2 on this program right now so we'll see.

PS

I will no longer accept trustee vouchers and other aide. Too many delays, extra paperwork. and hoops. It is a clear signal they cannot afford the home. Just delaying the inevitable.

I cannot recall a time when the aide fully caught them up and did not end in eviction anyway.

PS

I will no longer accept trustee vouchers and other aide. Too many delays, extra paperwork. and hoops. It is a clear signal they cannot afford the home. Just delaying the inevitable.

I cannot recall a time when the aide fully caught them up and did not end in eviction anyway.

Congrats!