Author Topic: Need Advice- Tenants not keeping up with rent  (Read 1092 times)

kaypinkHH

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Need Advice- Tenants not keeping up with rent
« on: April 20, 2019, 07:04:23 AM »
Hi all,
Would love some advice!

We bought a 2 unit property in December, took on an existing tenant and part of the conditions was that the seller had to find a new tenant for the vacant unit (with our final say on who the tenant was). All that got sorted, but then immediately the new tenants started having issues with rent.

The wanted to move to paying every 2 weeks, which we figured would be fine- first mistake.

Then things started to go bad....the missed the first payment ($650) (A third roommate was suppose to move in but bailed on them...or they just included him on the application to get the unit) but then, got another roommate, and were able to make their payments (mostly...one time they sent us $640 vs $650), but were always that first payment behind. We met with them early March and agreed to let them spread out the missed payment over the rest of the year. 

We agreed to this because they are good tenants in every other way. Unit is clean, they keep us informed about missed payments, they get along with the other tenants. They admitted that this unit is a bit of stretch financially, and have been working at other employment opportunities. They want to stay in the unit for a while (they have young kids and are sick of moving). 

However, since that discussion they continued to be about 15 days late paying. In our province you can send a notice to quit at 15 days, then the tenant has 15 days to pay or leave the unit. They keep paying just in time to not get a notice (ie 15 days late). Finally it caught up with them.

Their April 5th payment ($650) was due today (if not they would get a notice to quit), plus the next payment...and we received $400...and another message with an excuse why they didn't have the full amount. Apparently they both have new jobs now, and we will see the remaining payment next week. (Note we have been hearing stories like this since January).


I haven't accepted the $400 yet (e-transfer), as I know accepting partial payment means "accepting rent" for the month, but I'm torn. Do we send them the notice to quit? I feel like if we don't stay true to our word this will be an ongoing thing. Honestly I don't really want to evict them (for the reasons mentioned above), as I'm worried if we do, then find new tenants we could end up in the same situation with worse tenants....at least these guys aren't trashing the place! 

Alternatively, I was thinking we could ask for their employer info and confirm their new employment to ensure we will be getting our rent going forward.

At this point we are short the original 1/2 month rent ($650) + $250, plus the additional $650 that would have been due today. We do have a security deposit for $650 from them, that we would be entitled to keep at this point if they left.

Thoughts?




Blindsquirrel

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Re: Need Advice- Tenants not keeping up with rent
« Reply #1 on: April 20, 2019, 07:56:17 AM »
kick them out ASAP. 25 years as an investor. They occupy an enormously valuable asset that is a negative yield. Give them a pay or quit notice and if they do not pay, out they go. You are running a business with your families economic future at stake, not a flop house. Not meaning to be a dick but tenants who do not pay must go, ASAP.

Another Reader

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Re: Need Advice- Tenants not keeping up with rent
« Reply #2 on: April 20, 2019, 09:39:43 AM »
kick them out ASAP. 25 years as an investor. They occupy an enormously valuable asset that is a negative yield. Give them a pay or quit notice and if they do not pay, out they go. You are running a business with your families economic future at stake, not a flop house. Not meaning to be a dick but tenants who do not pay must go, ASAP.

+1.  The seller took the first applicant to satisfy the terms of your sales agreement, not because they were good tenants.  Kick them out and move on.

Freedomin5

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Re: Need Advice- Tenants not keeping up with rent
« Reply #3 on: April 20, 2019, 04:20:31 PM »
Yes, start procedures to kick them out. Keep a copy of all documentation/communication  that you send them and that they send back. If it ever lands in front of the Landlord and Tenant Board, you need to be able to prove that you did everything by the book.

marty998

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Re: Need Advice- Tenants not keeping up with rent
« Reply #4 on: April 20, 2019, 04:25:19 PM »
kick them out ASAP. 25 years as an investor. They occupy an enormously valuable asset that is a negative yield. Give them a pay or quit notice and if they do not pay, out they go. You are running a business with your families economic future at stake, not a flop house. Not meaning to be a dick but tenants who do not pay must go, ASAP.

Yep, @kaypinkHH you're being had. Your good nature is being taken advantage of here.

Plenty of other good tenants around who do pay their rent on time. Find one of those.

Bracken_Joy

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Re: Need Advice- Tenants not keeping up with rent
« Reply #5 on: April 20, 2019, 05:07:11 PM »
Yeah, unfortunately, I think they need that notice. You aren't a charity =( You didn't make the choice for them to take the unit. It's unfortunate, but you truly have extended far more good grace than they would get elsewhere. It's more than enough already.

lollylegs

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Re: Need Advice- Tenants not keeping up with rent
« Reply #6 on: April 20, 2019, 05:57:43 PM »
get rid of them,  this is why I have a managing agent -worth the cost to deal with the problems.

kaypinkHH

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Re: Need Advice- Tenants not keeping up with rent
« Reply #7 on: April 21, 2019, 04:34:48 AM »
Thanks everyone, seeing it all written out even I was like...yup we need to take action.

We are giving them notice today. They have 15 days to come up with rent or leave.

Xlar

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Re: Need Advice- Tenants not keeping up with rent
« Reply #8 on: April 24, 2019, 08:13:08 AM »
kick them out ASAP. 25 years as an investor. They occupy an enormously valuable asset that is a negative yield. Give them a pay or quit notice and if they do not pay, out they go. You are running a business with your families economic future at stake, not a flop house. Not meaning to be a dick but tenants who do not pay must go, ASAP.

+1.  The seller took the first applicant to satisfy the terms of your sales agreement, not because they were good tenants.  Kick them out and move on.

+2. Having the seller fill the vacant unit was a big mistake. They had no vested interest in finding a good, long term tenant.