Landlords generally have a protected right to receive payment from tenants. However, some tenants may come across situations in their life that make it difficult for them to financially handle this, thus leading to troubles paying rent.
Fortunately, there are ways to handle these tenants before having to turn toward eviction.
Payment plans and partial payment
U.S. News discusses how to handle tenants who do not pay. First, you can come up with partial payment or payment plans. If you can empathize with a tenant who reaches out to you in a time of financial duress, it will preserve your relationship and likely give them a reason to stay on as a tenant.
Consider waiving late fees or even creating a unique payment plan that provides flexibility for a tenant struggling financially. You can even work out a partial payment plan, because receiving part of a payment is better than receiving none at all. Of course, these measures are all temporary in nature, meant as a “bandaid” of sorts as the tenant works through this difficult financial period.
Utilizing the security deposit
You can also allow a tenant to use their security deposit in some cases. This is a good option in the midst of financial crisis. This allows a tenant the ability to make a full rent payment. While it also leaves you without a fund in case damages need repairs, you can also still charge the tenant later for damages they caused while in the home.
In some cases, you can also break lease. If a tenant wants to break the lease, consider allowing them to do so without penalty, as it allows you a quicker turnaround time to get a new, paying tenant in.