Last fall, 15% of American households were behind on their rent. As inflation rates continue to rise, landlords face tenant problems as more people are having trouble paying rent.
But what can you do if tenants can't pay rent?
Before you start evicting a tenant, you should try the strategies in this article. These tips will help tenants with money problems so you won't miss out on monthly income.
Tips for Tenants That Can’t Pay Rent
It's easy to assume the worst when a tenant can't pay rent, but in some cases, they simply forget the payment date. For people on a monthly salary, their job might pay them later than the rent due date. You can contact your tenant and arrange a new date in these situations.
If a tenant can't pay rent for several months, you need to start sending paperwork to their home.
Send Late Notice
After calling your tenants and not getting a response about the rent due date, you need to send a letter of notice. This document reminds renters that they have missed their payment schedule.
This document should contain the outstanding amount plus the late fees for not making the due date. You should also warn that legal action will occur if the tenant doesn't pay the required amount.
This is an important step for property owners if you need to go to court over tenant evictions. You need to keep several copies of the letters of notice for the future.
File an Eviction
If the tenant cannot pay rent, you will need to file an eviction notice. You will need to contact the local authorities to find out what paperwork is required for eviction. This is where the late notice documents will be essential. They prove that you attempted to settle the dispute before taking legal action.
There are two ways to deliver an eviction notice. You can send the paperwork through a letterbox or have a third party deliver it to the tenant.
Speak to Your Tenant
Tenants may still contact the landlord once they have received an eviction notice. It's a good idea to speak with your tenant to understand their situation. There are usually personal reasons like loss of work or illness that have caused tenants to be unable to pay rent.
If tenants have access to benefits or other financial aid, you can come to an agreement about payment dates and fees. This would allow your tenant more time to pay rent and pay off any outstanding debt.
It's worthwhile having a conversation with your tenant to see if there's a solution before you take legal action. Tenants who refuse to contact you should be issued a document from an eviction lawyer.
You should then inspect the property for damages and consult with your lawyer about the court hearing.
Hire a Property Manager to Help
Dealing with tenants who can't pay rent can be challenging if you don't have experience with these situations or have a busy schedule. Hiring a property manager will give you support with the process. They can handle the beginning stages of sending rent notifications and letters to remind tenants of their payment dates.
Talk with our team about our property management services here and learn how they can help you.
