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What Should You Do if Your Tenant Can't Pay Rent on Time?

What Should You Do if Your Tenant Can't Pay Rent on Time?

Evictions are everywhere these days! Landlords file 3.6 million eviction cases every year, with 2.7 million households receiving notices.

These statistics may make tenant evictions seem easy. But you need to respect your tenant's rights, even if they can't pay the rent. You need to break the eviction process down into a few steps so they leave peacefully.

What should you do as soon as you find out your tenant cannot pay the rent? Why should you examine your tenant management policies? How can you bring the eviction process to a close?

Answer these questions and you can make managing a rental easy. Here is your quick guide.

Communicate With Your Tenant

Your tenant may reach out to you in advance and tell you they cannot pay rent. If they initiate the conversation, talk to them about a solution to the problem. They may be able to make two rent payments next month, or they may be able to make small payments over the next few weeks.

If your tenant misses the rent without notifying you, you should talk to them. They may have sent you a check in the mail, and the mail may not have arrived yet. The rental payment date may be on a holiday or weekend, and they may need to wait until a business day to send you money.

Review Your Policies

You should examine your lease agreement to see when and how your tenant should be paying rent. You may have forgotten about a grace period or a holiday that your tenant is following.

Review landlord-tenant laws in your area as well. One of your policies may be in violation of the law, and your tenant may be following the law instead.

Send Legal Notices

If you cannot talk to your tenant, send them a late-rent notice. The notice advises them that the rent is due, and it lets them know how much and when they need to pay.

If you still haven't heard back, you can send them a pay-or-quit notice. This tells them that they must pay the rent in full or leave your property. Work on this notice with a lawyer so you follow all eviction protection laws.

Consider a Cash-For-Keys Deal

After sending your pay-or-quit notice, you can start the eviction process. But you can end tenant evictions early with a cash-for-keys deal. In exchange for you waiving rental payments and late fees, your tenant will move out.

You can also offer to pay for a moving company or transportation and offer to help them pack. If they say no to your deal, you can continue the eviction process. If you need help, you can pick property management services to help you evict your tenant.

Move Fast When Your Tenant Can't Pay Rent

If your tenant can't pay rent, you must talk to them. You or they may have misunderstood what the payment policies are. Examine your lease agreement together and figure out if they can pay this month's rent next month.

If you cannot contact them, you should meet with a lawyer and send your tenant legal notices. To end the eviction process before you go to court, you can arrange a cash-for-keys deal.

The eviction process can be confusing, and you need all the help you can get. Kerr Properties, Inc. assists Portland landlords with managing rentals. Contact us today.