Tenants Behind on Rent

Q. I moved a couple into one of my rentals last January.  Since then, they have paid their rent later and later each month until now, they are a full month behind.  Apparently, there was a job change right after they moved in and they haven’t been able to get caught up.  They have been very apologetic and keep promising to remedy the situation but it never happens.  Other than this problem, they are keeping the house up very nicely.  What should we do?

A. This is a problem that can be handled in a few different ways.  It sounds like you would like your tenant to stay if they catch up the past rent and begin to pay on time.  There are a few different ways that you could approach this problem.  Here are two:

1. Serve them a 3-Day Notice, after which time you may file a Notice of Default  and proceed with eviction through the court system to get them out.  You can then rent to someone else who will pay their rent on time. 

2. Arrange a meeting with both of the tenants present and discuss the problem.  There are a lot of people that become overwhelmed once they have gotten behind on payments, but with some direction, can easily be put back on track.  Good communication is the key. If you decide to take this approach, I suggest that you have a frank discussion with your tenants.  Let them know you would like them to stay, but economically, it will be impossible if they don’t pay their back rent and begin to pay their rent on time every month.  Many tenants don’t realize that their landlords depend on their income to pay their own bills (Yes, believe it or not!). Discuss a possible “payment plan” with the tenant. Make sure it is a realistic one.  For example, you may ask them to pay an additional $100 per month until the back rent is paid in full.  Make sure they understand that whatever plan you agree upon, the payments must be made on or before the dates specified in the agreement or all bets are off and you will proceed with an eviction.   If they are worth keeping, they will be grateful and honor the arrangements.  It’s a win-win situation of all concerned.  If you come to an agreement but they continue with their old pattern, get tough and evict them.

If you have any questions concerning your rental property, please call my office anytime at (805) 474-0100. I always enjoy hearing from you! Nancy Puder is the property manager and owner of Signature Properties, 124 S. Halcyon Rd #D, Arroyo Grande, CA 93420. Service areas are The Five Cities/Beach areas, SLO, Nipomo and Santa Maria.