As rental rates continue to rise, as many as 8 million Americans are behind on their rent. If you own rental property and find yourself in this situation, there are steps you should take to resolve the issue. Consider taking these five steps when dealing with past-due tenants.
1. Check Your Records and Lease
The first thing you should do when a tenant is late paying rent is to check your records. Some landlords keep immaculate records, but not everyone is this organized. If you think your tenant has not paid their rent, check your records to confirm this. Perhaps you have misplaced their payment or forgotten that they paid.
The next thing you should do when a tenant is late paying rent is to check your lease. This may sound silly, but you want to make absolutely sure that you follow your lease to the letter. A lease is a contract, so you must follow the terms as much as the tenant. For example, your lease may contain a grace period. If it does, you must abide by this before taking action.
2. Talk to the Tenant
Tenants are people, and life has a way of being unpredictable. Even the best tenants could face tough times and struggle to pay their rent on time one month. If your normally punctual tenant is late, try talking to them. A little communication goes a long way in maintaining a positive relationship with your tenant. You may find that they are a little short and can make partial payments until they are caught up. Or perhaps they just need an extra day to pay. Working with your otherwise stellar tenant can encourage them to renew when the lease is up. This benefits you in the long run.
3. Review the Law
Before you move forward with the eviction process, take some time to review the law. Failure to follow the requirements could result in you being unable to proceed with the eviction process. If you are unsure how to proceed, speaking with a real estate lawyer can help. Schedule a consultation with a lawyer to discuss your situation and gain insight into your legal options.
4. Send a Written Late Notice
Once you confirm that the tenant is indeed late, you need to notify the tenant of this fact. Florida law outlines that this notice must be in writing. This step is crucial. It is the first step of the eviction process. If you get it wrong, you must go back to this step and start this process over.
Once the tenant receives the three-day letter, they have three days to either pay the outstanding rent or move out. Should the tenant fail to do either of these things, you can move forward with the eviction process.
5. Gather Your Documents
If you go through the eviction process, you must provide documentation to the court. Gathering your documents now will make this process easier when the time comes. While having an organizational system and accounting in place is ideal, not every landlord is well organized. At a minimum, you should have a copy of the lease, a record of tenant payments, a copy of your three-day letter, and proof that the tenant received it.
Take Action When You Have Past-Due Tenants
You purchased a rental property hoping to generate an additional monthly income stream. So it can feel frustrating when you have past-due tenants. However, you have plenty of options as a landlord. Start by talking to your tenants. If this doesn’t resolve the situation, you may want to speak to a lawyer about pursuing your legal options.
Schedule a consultation with one of our knowledgeable real estate lawyers to discuss your options for dealing with a past-due tenant.
