In two previous articles, "Rental Basics: Tips and Tricks to become an Efficient Landlord," and "Maintaining Rental Relationships: Tips for Landlords," finding and maintaining a good relationship with tenants were the main focus. However, what happens when things go wrong?
In a perfect world, everyone would treat their responsibilities to others with great care; however, this is not always the case. What are the rights of an owner/landlord if their renter refuses to pay rent?
Depending on the State Law in question and what steps the owner took to protect their investment; the homeowner will be fully within their rights to evict a non-paying tenant.
The First Step is Patience
If a renter has fallen behind on their rental payments, the first step is to speak to them and work out a plan for them to catch up. If the owner is willing to break up the rental payments into bi-weekly or even weekly payments and the tenant makes a concerted effort to make these payments then the problem may resolve itself.
However, the owner must be clear with the tenant that their expectation is to be notified in writing if there is an issue with payments. The owner should keep all written and verbal encounters in a record book in case of further difficulties.
If at all possible, if a good working relationship has been established, all efforts to maintain this relationship should be used until exhausted.
After all, the owner is responsible for the property and home owner payments. They want to make their best effort to work with the tenant and resolve any issues before they must resort to further actions. This is a business agreement and as such the owner must look after their interests.
There is unfortunately no place for friendships or sympathies in rental relationships. The owner/landlord after making all reasonable efforts must eventually realize that this relationship may need to be severed.
The Second Step is Written Notification
Depending on the state that the rental property resides, a written notice must be processed and served by law enforcement in order to begin the eviction process.
The owner would take their contract and all payment receipts to the County Clerk's office and fill out an eviction notice that would then be served. Most states require at least thirty days notification before a renter can be evicted.
If in that given timeframe, the renter catches up on all rent owed, then the owner may allow them to maintain the occupancy. However, in the initial contract, there should be a clause about eviction.
The owner must cover themselves by having the tenant agree that if there is cause to evict then even if rent is paid in full, the owner can evict if the renter falls behind after an eviction attempt.
Hopefully, the owner and tenant can come to a mutual compromise, but all owners should have written protection in their contract about evictions, deposits, and damages caused by the tenant.
As long as the owner has obtained all necessary signatures and they have kept exceptional records than they will be able to regain their property and start anew.
After Eviction
If the worst occurs and the tenant must be evicted; the owner should make all necessary efforts to prevent damage and destruction to their property. Hopefully, they chose a renter that had great character, but just had financial woes that prevented them from meeting their obligations.
If this is the case, then their property should be safe and if the tenant does pay their rent in full before eviction, then their security deposit can be returned. The owner must have a clause about deposits and in what circumstances they would not be returned in full. This protects both parties from further litigation.
Unfortunately, the owner will then have to start over and find a new tenant. Starting the process over again can be time consuming and costly for the owner. However, hopefully they will have better luck with the next renter.
It is extremely important that their rental contract covers all eventualities so that both parties are legally bound to their responsibilities and that all expectations are clear and in writing.
Korie Schmidt - I am a former High School and Middle School English Teacher that decided to stay at home after the birth of my second child. I am a ...
