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The Non-Paying Tenant - Part II

June 20th, 2008 at 07:46 am

I heard back from the non-paying tenant. She will pay $500 cash today toward last month. As of today she owes (assuming she pays cash at 6:30)$2,485. In the message I left her stating pick up time, I asked for a written plan/timeline as to how she plans to become current with her rent. It will be interesting. DH thinks we should see what her plans are before we decide to not renew her lease. I agree; however, being the worrier that I am I feel as though I need to plan for the worst.

DH's salary is enough to cover our basic living expenses (mortgage/utilities/simple food/clothing). Also minimums on the credit cards. This month we will have saved $500 - $400 for retirment and $100 into HSA. So there is room for additional money should we suspend/alter those contributions.

I am trying to plan for several months NO RENT should we decided to get rid of tenant A and opt for a go around with new tenants. There are several houses comparable in the area already FOR RENT so DH thinks it might be best to work with the tenant we have. I am not sure of this.

Worse case scenario - I don't receive another dime in rent this year - my deficit would be $4K - I suppose that DH's irregular salary from side jobs would be roughly $2K to $3K so I would have to take $1K to $2K from savings to pay the last installment of real estate taxes and Cathoic school tutition.

I feel somewhat better, but not sure I am completely fiscally comfortable.

8 Responses to “The Non-Paying Tenant - Part II”

  1. Joan.of.the.Arch Says:

    Oh, dear. How long has this person been your tenant? Has your tenant lost a job or something? At what point would you decide to start eviction process?

  2. klbb90 Says:

    You didn't ask, but I would advertise for another tenant to truly get a feel for the market as a way to have further information in the decision process. See what happens.

  3. simpleyme Says:

    I did not read part one of your saga but I have a property manager handle collecting rents the are experts at eviction and collection we have never lost any rent owed to us in the past decade, you may want to consider that, in my state one you start accepting partial rents you have changed the term and are screwed,
    interview property managers today! get one with a big company that handles many rentals not a small company good luck

  4. mom-sense Says:

    simpley, did you find one that manages one unit? i looked into it awhile back (two years) and the places i called weren't interested in one single family unit - i definitely am considering it. thanks for the advice.

    klbb, that is a great idea to see what the actual interest in renting is.

    thanks!

  5. simpleyme Says:

    wow things are differnt in differant places aren't they ,I had not considered that agents in your area couldn't be bothered ;-( the economy is different then it was 2 years ago maybe they will be hungrier

    if nothing else i would not renew the lease with a nonpaying renter
    unless she gets current before the end of the lease
    I hope the best for you and i hope you got your 500 bucks



  6. Maria - Frugal Homesteading Says:

    I hope she pays up. My parents just evicted a non-paying tenant, and never did get the last two months' rent out of her. I hope you fare better. We will soon become landlords as well ... not by choice, but because our house did not sell.

  7. onesexylady Says:

    WOW!!! I didn't know that a tenant could fall that far behind on there rent and still have a roof over there heads. I don't think that non renewing her lease should be a hard decision. I'm hoping she's experienced job loss or some tragic event in here life that has caused such a financial hardship because if she hasn't and she's working every thing she's pulling a big fast one. I don't think she is too responsible I never understood how ppl can go to work everyday and neglect to pay there rent. Some ppl deserve to be on the street because they have the funds and just choose not to pay rent is due on Monday for cris sakes. Unbelievable I paid my rent today and I don't take that too lightly even paying on the 5th.

  8. MileHighGirl Says:

    Did she contact you regarding her hardship? (job loss, medical issue, etc). If not, it's time to evict her, although I understand your hesitation, the renter might trash the place or make off with some of your property.

    I think having a property manager def helps with the headache, but when you're not netting much it can really eat away at your profits.

    If you haven't already I'd contact her and tell her to meet with you and explain why she isn't paying, and to determine a plan of payment. If she fails to meet you half way, you really shouldn't waste anymore time and money on the situation.

    Just my 2c.

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