Rent collection is one of the reasons why people invest in rental properties. It provides them the ability to collect a passive income stream every month. However, sooner or later, most landlords deal with a tenant that stops paying rent.
If you're currently dealing with a renter who has stopped paying rent, we've created a post entirely for you. If you ever wondered what to do when a tenant stops paying rent, continue reading.
1. Talk With the Tenant
The first thing you should do is have a take with your tenant. There are many reasons why a tenant stops paying rent, and it's important to understand what the issue is in your case.
You may want to provide a letter stating that their rent is late and that they will now owe a late fee. If this has happened before, you might want to reach out over the phone or in person to find out why.
In some cases, it could be that the person has lost their job or has become too sick to work. You can work together to develop a payment plan, especially if they've been a good tenant in the past.
2. Send Out a "Pay or Quit" Notice
In most states, landlords must send out a "pay or quit notice" after a tenant fails to pay rent. It is a formal letter that expresses that the tenant has forgotten to pay rent.
It also explains how late the bill is and how long the tenant has to pay the bill. Last, the letter explains that if the tenant cannot pay the bill, they will be forced to move out.
Typically, the tenant will have between three to five days in most states to pay the rent. If this doesn't work, there are other options available to you.
3. Paying Cash for the Keys
If your tenant hasn't paid rent due to a financial situation, you may want to consider paying them to move out.
Because this option is often quicker and less expensive than dealing with the eviction process, in some cases, when you pay a tenant to move, you eliminate the need for costly fees and lost rent collection.
It's important to treat the issue with tact and care, like a professional. Working with your tenant for an amicable solution is the best way to avoid eviction.
4. Consider Hiring a Property Manager or a Lawyer
If all the other options have failed to produce positive results, your next step is to hire a property manager or lawyer. Property managers can work as a third party to negotiate an eviction. A lawyer can help with sending formal notices about the consequences of not paying rent and possible eviction.
Dealing with eviction can be a frustrating and personal process. Hiring a third party to handle these issues will make it easier for everyone involved.
Get Reliable Rent Collection With Property Management in San Antonio?
If you're looking for reliable rent collection in San Antonio, it's important to hire a property management company that knows the area. Home River Group has been helping landlords in San Antonio since 2016. Our professional staff will ensure you get the best tenant for your residential property.
For more information about our services, please contact us online or call 210-340-1717.