Property owners often ask us what to do when a tenant stops paying rent. At Gulf Coast Property Management, we’re process-driven. So today we’re telling you about how we handle this situation and the tenant eviction process.
Three Day Notice
First off, a courtesy call on the final day of the ‘grace period’ is made to remind non payers that rent is about to be considered late. The very next day we deliver our Three Day Notice. This is the first step in the tenant eviction process and it also puts the tenant on notice that we’re serious about collecting the money.
Communication and Compromise
Thereafter, if the tenant doesn’t pay after the three days have expired, we talk to the landlord to discuss how we want to move forward. We will share information about anything the tenant has said. Sometimes, even the best tenants who are well-screened will fall into unforeseen circumstances. Life happens and tenants lose jobs or have to relocate or get divorced. Unfortunately, the landlord is one of the victims of these circumstances.
Rather than take the person to court, which can take four to six weeks, we work with the landlord and the tenant to find a solution that everyone can live with. Sometimes, this might mean letting the tenant out of the lease early with a penalty. Or, it could mean that we reach an agreement that allows the tenants to leave if they promise to pay the overdue rent in six month’s time.
Remember this isn’t personal – It’s business.
Getting the property back into the possession of the landlord so we can get it re-rented is the ultimate goal to these negotiations. By having the tenant stay in the property, it lengthens the legal process while you’re not getting paid. There is no guarantee you’ll recover costs or lost rent even with the court action. As a result, we look for compromises and make a business decision. Ultimately, that could mean letting the tenant go so we can re-rent the property immediately.
This is how we handle a tenant who isn’t paying rent. You might want to consider this with your own property. Communication is important, and you want to collect as much rent as possible.
If you are concerned about a tenant not paying you, please contact us at Gulf Coast Property Management. We would be happy to help you.