Author Topic: Tenants are in hospital  (Read 791 times)

umterp1999

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Tenants are in hospital
« on: March 20, 2017, 02:57:34 PM »
My tenants are older, probably in late 60's.  they have been tenants of mine for 12 years and are good people.  They've fallen on some hard times health wise.  The husband has had a series of strokes over then past few years and she was recently diagnosed with lung cancer and has been in the hospital for the past two weeks.  She was already one month behind on the rent because she requested she had to pay her deductible.  She is currrently payment plan for that but has only paid back 1/3 of that and is now five days behind on this months rent. Spoke with her today and she sounded awful and is in the hospital again.  Her husband is in some sort of nursing facility because he can't be by himself.  Meanwhile I have a mortgage to pay.  I'm trying to be understanding but she's been chronically late with rent over the years, but she always paid.  When I spoke with her last week, she was supposed to put a check in the mail last Monday, as she was to be at home then.  Today she said her plan is to give her keys to a friend to go in the house and get her bills, including rent, paid.  Any ways I'm kind of freaking as is my wife.  We can't afford to carry two mortgages for all that long.  Anyone ever deal with a similar situation?  And advice/thoughts?

Guizmo

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Re: Tenants are in hospital
« Reply #1 on: March 20, 2017, 03:15:48 PM »
It sucks but you have to kick her out. Heck I'd even be understanding and not try to pursue what she owes in court. At the end of the day, you have to do what's right for you and yours, especially if you can't afford both mortgages.

hoodedfalcon

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Re: Tenants are in hospital
« Reply #2 on: March 20, 2017, 03:24:27 PM »
There are a number of non-profits or churches that will step in to pay the rent in times like these. Before kicking her out, maybe give her some period of time to try to find rent money? Suggest some places she might approach? I know that would be above and beyond what is required of you but I personally would have a hard time making a sickly elderly couple homeless. Maybe she will soon be going into assisted living as well? I don't know. It's a tough spot. I am also sympathetic to you needing to pay your bills too. I am sorry. : /

former player

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Re: Tenants are in hospital
« Reply #3 on: March 20, 2017, 04:08:05 PM »
Check out lung cancer survival rates: your tenant is very probably dying, and very probably pretty quickly.

As a small act of political resistance, perhaps you could ask your elected representatives what you should do?
Be frugal and industrious, and you will be free (Ben Franklin)

Spork

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Re: Tenants are in hospital
« Reply #4 on: March 20, 2017, 04:12:34 PM »
The short answer here is: You gotta do what you gotta do.  If your cash flow is so tight that a mortgage hinges on the rent check being on time: You have to force her hand.  Either pay or start the proceedings to set her out.

The longer thing to think about: This is me reading between the lines.  I might be misinterpreting you.  I hope I am.  But it almost sounds like you might be a little in over your head.  It is sort of like you are margin trading and suddenly got a margin call ... and you don't have the cash to pay it.  I might be looking at leveraging yourself a little less.  Any number of normal every day occurrences could put you in a position to be not collecting rent for several months in a row.  If you can't make your mortgage payments when that happens, you're likely over extended.
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Or lose the race to rats
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And start to dream of somewhere
To relax their restless flight

YttriumNitrate

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Re: Tenants are in hospital
« Reply #5 on: March 20, 2017, 05:01:43 PM »
The longer thing to think about: This is me reading between the lines.  I might be misinterpreting you.  I hope I am.  But it almost sounds like you might be a little in over your head.  It is sort of like you are margin trading and suddenly got a margin call ... and you don't have the cash to pay it.
Unless it's a million dollar rental, umterp1999 has a fairly big safety net:

Quote from: umterp1999
NW increase of 48K in 2015 to just over 800K.  Not too shabby on a teacher's salary with a stay at home wife for the past two years (supplemented with a lot of stipend positions, such as coaching, and school clubs).

umterp1999

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Re: Tenants are in hospital
« Reply #6 on: March 20, 2017, 05:12:26 PM »
Thanks for the replies. Yes I have probably six months to a year of reserves to ride this out.  Not to say it isn't anxiety producing, and I don't want to be uncaring but I also need to run my side business effectively.  That's where I am.  I have always tried to treat any of my tenants as I would like to be treated.  I feel I've been more than fair over the years, but I'm just one guy with a small real estate business, I'm not some big rental agency.
The other part is that this couple has struggled financially and has basically been pay check to paycheck for the past 12 years.  They certainly are a case study in why it's important to manage money wisely, especially as you age.

Blindsquirrel

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Re: Tenants are in hospital
« Reply #7 on: March 20, 2017, 05:51:20 PM »
   The Salvation army also helps folks in this situation (they have helped former tenants), and if they are Masons or Eastern Star those organizations also help members out) and that is worth a shot also. Maybe she qualifies for Section 8 but they are slow and often have long waiting lists but worth a shot. At the end of the day, you have to decide if you would write them a check for their rent out of your personal account. Them not paying while occupying an asset worth tens of thousands of dollars is exactly the same thing. Also, she has chosen to place paying a multi-million dollar medical company ahead of paying you so there is that.  After 12 years I myself would be slower on the trigger to evict rather than super quick but at the end of the day, you have to make the call.
Even a blind squirrel finds a nut once in awhile.

lizzzi

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Re: Tenants are in hospital
« Reply #8 on: March 20, 2017, 06:18:55 PM »
Do you have any idea who their relatives are? Is there a good adult son or daughter who can step in and help them with the bill-paying while they are laid up? If not, perhaps she is going to use that friend you mentioned, and if so, you should be getting your money if the friend is reliable. I don't think it's as mean and heartless as it sounds to evict them. It sounds like neither one of them is really appropriate anymore for living in your apartment. It sounds to me as if they need a higher level of care. Perhaps the husband needs to stay in the facility, and the wife needs to be referred from the hospital to a nursing facility or perhaps a Hospice. So in a way, you are shoring up a shaky situation by trying to continue to carry them...and evicting them will actually serve to force them into more appropriate and safer living conditions. Sometimes it is just time to turn off the lights, lock the door, and move on. (I'm speaking as a public health nurse here--not as a landlord type of person.)

Kroaler

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Re: Tenants are in hospital
« Reply #9 on: March 21, 2017, 03:41:50 PM »
Unfortunately, if your not careful the media can make you look like the devil.

http://articles.latimes.com/2001/mar/17/local/me-39067

Heres this on bigger pockets dealing with a similar issue.
https://www.biggerpockets.com/forums/52/topics/354635-my-tenant-has-cancer-rent-is-latenow-what-do-i-do

rachael talcott

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Re: Tenants are in hospital
« Reply #10 on: March 21, 2017, 07:21:16 PM »
You should look up the rules for evictions in your state. In mine (TN) it takes 3 months to evict.  Many landlords will just pay tenants to leave because it's cheaper in the long run.  That might help your tenants get situated somewhere else. 

Ocinfo

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Re: Tenants are in hospital
« Reply #11 on: March 21, 2017, 07:48:19 PM »
Unfortunately, if your not careful the media can make you look like the devil.

http://articles.latimes.com/2001/mar/17/local/me-39067

Heres this on bigger pockets dealing with a similar issue.
https://www.biggerpockets.com/forums/52/topics/354635-my-tenant-has-cancer-rent-is-latenow-what-do-i-do

I was going to post pretty much the same thing regarding media so glad to someone else thinking that way.

Lung cancer sucks, having seen it first hand with 2 grandparents. There's a very real chance that she is not going to get better and likely to get worse very quickly. Talk with the friend or any family to either keep up with the rent or hasten a move.

You've been patient and it sounds like a just a little more patience might be needed. Money isn't everything, I know I wouldn't be happy with myself evicting an elderly person with lung cancer unless it was an absolute last resort.


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Blonde Lawyer

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Re: Tenants are in hospital
« Reply #12 on: March 21, 2017, 07:56:05 PM »
If she is in the hospital, she might not have the physical logistics, like her check book to pay the rent.  Cut her some slack. Give her a few weeks to pay up.  I have a very wealthy client that was just in the hospital.  He had a similar issue.  He had money but he couldn't access it. Pro-tip, if you pay all your bills online, make sure someone has access to that info so if you are incapacitated, they can pay your bills for you. 

Another Reader

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Re: Tenants are in hospital
« Reply #13 on: March 21, 2017, 08:07:23 PM »
They should have given you family or friends as references and/or contacts when they filled out the rental application.  A friendly concerned phone call to a child or other relative may get things moving.  If not, ask your tenants directly if they have family, church, or friends helping them.  If they are completely alone, you may need to contact Adult Protective Services. Find out who makes welfare checks in your jurisdiction.  Sometimes they can take action when it is clear the person can't be left alone in the property.

I'm going through this with my elderly tenants right now.  They have no children but their "church family" is handling everything for them.  They have moved to assisted living, and the church handled the Medicaid application, the move, and cleaning the house out and disposing of the unneeded possessions.  They are doing a much better job helping these folks than a lot of children of parents in this situation I have seen.

Blatant

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Re: Tenants are in hospital
« Reply #14 on: March 21, 2017, 08:22:36 PM »
I'm not a landlord, so take it for what it's worth. But I am a human being.

This situation certainly sucks. Were I in your shoes -- and assuming it would not literally be taking food out of my children's mouths -- I would not want to go to bed at night knowing I made the lives of two elderly folks coming to their end even more terrible and scary.  If you can, be a better human than that.

SwordGuy

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Re: Tenants are in hospital
« Reply #15 on: March 21, 2017, 09:39:00 PM »
Luckily, we could handle this for a goodly while if we had to.  I would hate to be in your shoes because there simply aren't any good answers.

It sounds like a month or two's grace would not break the bank, and being a decent human being is it's own reward.  You'll sleep better for delaying FIRE for a month or three.  Decide what you can afford, double check that against the local laws so you don't get a multi-month delay as a surprise, and communicate that clearly to them, in writing.  They aren't going to be at their best, so take pains to be extra clear.

If it comes time for them to move out, help them move.  If they're both in the hospital or nursing home, rent them a storage unit and help them by moving their stuff to storage instead of tossing it out to the street.   You can hire folks to help move via UHaul.

Now, if these folks were just scum-sucking grifters who were in the habit and mindset to cheat their landlords (and anyone else), I would say file the paperwork to evict first thing in the morning.

Best of luck.


Another Reader

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Re: Tenants are in hospital
« Reply #16 on: March 22, 2017, 05:42:04 AM »
Luckily, we could handle this for a goodly while if we had to.  I would hate to be in your shoes because there simply aren't any good answers.

It sounds like a month or two's grace would not break the bank, and being a decent human being is it's own reward.  You'll sleep better for delaying FIRE for a month or three.  Decide what you can afford, double check that against the local laws so you don't get a multi-month delay as a surprise, and communicate that clearly to them, in writing.  They aren't going to be at their best, so take pains to be extra clear.

If it comes time for them to move out, help them move.  If they're both in the hospital or nursing home, rent them a storage unit and help them by moving their stuff to storage instead of tossing it out to the street.   You can hire folks to help move via UHaul.

Now, if these folks were just scum-sucking grifters who were in the habit and mindset to cheat their landlords (and anyone else), I would say file the paperwork to evict first thing in the morning.

Best of luck.

I agree with you in theory.  There may even be a legal basis that as part of the eviction process, you can move their personal property into storage.  However, I would want to make sure that I was doing everything according to the rules of your jurisdiction.  Ultimately someone is responsible  for these folks and their welfare.  If there is no family or legally assigned representative, you may be held liable for your actions by the County Guardian or other public agency. 

I would probably go to the hospital and ask them both what they want to do.  Try to convince them to appoint a personal representative to handle their property and the lease obligations. If they do not return to the property, you may have to go through the abandonment eviction process if no one is appointed.