Renting an investment home to tenants can be extremely beneficial for everybody involved. But there’s also several problems that can arise – perhaps the most common being late rent payments or no payment at all.
If you have found yourself in this situation, consider the following tips to resolve the issue with as little stress and hassle as possible:
No. 1 – Always Have a Plan
Regardless of who your tenant is, you should have a clear and concise plan established well beforehand regarding how you will handle late rent payments. These terms should be outlined clearly in the written lease to ensure all parties involved understand exactly what is to be expected.
No. 2 – Post a Late Rent Notice
Depending on the grace period allowed by the lease, you should promptly post a late rent notice once this period is breached. This notice should include the total amount due and any late fees associated with the delay in payment.
No. 3 – Make a Phone Call
If the tenant hasn’t contacted you concerning their late payment, call them up on the phone to find out what is going on. Hopefully, the tenant will be available to take your call and you can resolve the issue with a simple conversation.
Many times, tenants plan to pay but are simply too overwhelmed with their financial situation to call you first. That’s why it’s always a good idea to keep the lines of communication open between you and your tenants.
No. 4 – Post an Eviction Notice
While it’s never a fun thing to do, if a tenant has shown no effort or good faith to pay you what they owe – it’s time to post a notice of eviction and/or attorney’s letter on their door. Ask your lawyer to prepare this letter for you to ensure it’s up to your state’s standards.
No. 5 – Take Legal Action
If after you have taken all of the steps listed above and your tenant still has not paid their rent, it will be time to take legal action against them as a last resort.
However, it’s important to realize eviction laws are tricky and going to court isn’t the easiest process – especially if this is the first time you’ve had to evict somebody. Consider hiring a lawyer who is highly skilled in eviction law to make the process as quick and painless as possible.