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How should you handle a tenant not paying rent?

On Behalf of | Nov 23, 2021 | Estate Planning | 0 comments

As a landlord, you have the right to receive payment from your tenant. Unfortunately, people sometimes have financial hardships that can impact their ability to pay rent. If your tenant goes without paying for over a month, you may want to talk about your options.

The U.S. News, there are ways to handle a non-paying tenant without resorting to eviction first.

Consider payment plans or partial payments

If your tenant reaches out to you about financial hardship, you may want to react with empathy and understanding. If you can empathize and help your tenant, he or she will likely work to repay the kindness and may remain a tenant. When talking to your tenant, look for signs of financial hardship. If necessary, consider a flexible payment plan. You can split the full amount of rent over a period of time. Otherwise, you may consider waiving late fees.

Additionally, consider accepting partial payment. Receiving partial payment is better than no payment at all. Remember that any partial payment or payment plan should be a temporary solution until your tenant can begin to pay in full again.

Utilize the security deposit

In some cases, you may want to allow the tenant to use the security deposit. Many landlords choose to go this route during a financial crisis. It allows you to have access to a full rent payment. While this does mean you no longer have a deposit for potential damages, you can still charge fees for those damages if necessary.

Sometimes, it is better to break a lease than to worry about payment. The tenant may request breaking the lease without penalty. You may save money if you let the tenant go so you can search for a new one.