Life as a landlord is not all about passive income. Most people dream of an easy life (and income) when they think of owning a rental house. That’s far from the truth. Tenants will damage your home. At times, the house will be vacant without earning you any money. And then there are tenants who don’t pay rent. You might be dealing with tenants who don’t pay rent. Your options are limited, but you’re in the same boat with other landlords. Many of us are facing the same situation. Eviction is one option, but many landlords don’t want to take this route.
Here’s how Lawton landlords are dealing with tenants who don’t pay rent. The best defense is a good offense. A good screening is the first step to avoiding issues as a landlord. If you have hired a property manager, he will take care of this step. You want to do a background check and ensure that your tenants can afford your home. Outlining a detailed contract also helps but that’s something you could do in the past. If you did all that and you’re still dealing with tenants who don’t pay rent, then, here are your other options:
#1. Avoid the situation
Most landlords adopt this strategy. You send a notice and hope that the tenant catches up with payment. This is definitely not the best option but it is an option that many landlords take. You can just ignore it and hope they’ll pay on time next month.
Frankly, it may not happen (it rarely does) but it could happen so we’re including it here as a possibility. Many tenants are either facing financial difficulty or delaying your payment intentionally. In both cases, waiting is not going to resolve the issue. It would be challenging for them to come up with 2 monthly payments in the next month.
When dealing with tenants who don’t pay rent, we don’t recommend this strategy because it opens the doors to the possibility that your tenant will take advantage of you. If you remain silent, the tenants can assume that you don’t care about on-time payments. It’s best to get on the call and inquire about the payment. Ask why the payment is late and if they need your assistance with something.
#2. Negotiate
Bad things happen to good people. Life happens. Sometimes your tenants need a different payment schedule especially if they are behind on payments. They might not be able to pay you a lump sum so you might have to break down the payment into installments.
Not everyone can pay easily each month; some renters can pay better by the week because it’s a smaller payment. Or maybe you can get them to do some work around the property in exchange for a discount on the rent. If you choose to negotiate with your tenant, make sure you get an agreement from them that works for both of you, otherwise, you’ll just feel even more frustrated!
#3. Evict
Eviction is often the last strategy. As a landlord, you can exercise your right to evict tenants if they don’t pay your rent. Be aware that this can be a complicated, time-consuming process that may involve some legal hassles too. Eviction is very difficult to do, especially since many laws favor the tenant over the landlord. It may be worth doing this in the long-run, though, if you can get a paying tenant into your rental property.
#4. Sell
Another option is to sell. If this is just one of many frustrations you’re facing with your rental property, then it could be your best option! Just imagine selling the property and getting on with your life—and not having to deal with tenants their annoying troubles any longer. Many landlords love the new-found freedom they get when they sell.
At DHS Realty Group we buy rental properties from landlords like you who are burned out, worn out, frustrated, and just want to get their lives back. If you’re stuck with tenants who don’t pay rent, give us a call. Click here and fill out the form. We will get back to you with a fair cash offer.