I have seen the current economy take it's toll on some of my tenants here in Brevard County Florida. A couple have been laid off. Some have had hours cut at work, Some have lost their jobs. Good things happen to good people. Some have less than desirable spending habits. Regardless, of what the issue is...some rents, from some tenants, are becoming a bit more difficult to collect.
So, we have been setting up payment plans with our own tenants. Some can afford to pay $200 a week, while they've got the money in their hand, rather than wait to gather a full $800 for the month. Some cannot get the full amount together, as it is a bit too tempting to have that all at once, and they're afraid they'll spend it. Some are better with their finances than others. In some situations, depending on the individual tenant, I will agree to take payments, that suit their lifestyle, that will work best with their pay periods.
Let me qualify this by saying I will NOT, UNDER ANY CIRCUMSTANCES ACCEPT PARTIAL PAYMENTS FROM A TENANT IN MOVING INTO A PROPERTY I HAVE. I also will not accept partial payments from a tenant that has not rented from me for a period of time. I must know them and feel comfortable with setting up such an arrangement. I will also say, in taking payments I will not allow one month to flow over into another month.
However, landlords must be cautious, as in some states, if you accept a partial rent payment from a tenant, and they do not come up with the rest of the rent, you cannot begin eviction proceedings until the beginning of the next rent payment due date, ie; after the first of the next month (or whatever due date your lease specifies). So, you can lose time in an eviction. And, time is of the essence to a landlord in an eviction.
First, check the laws in your state before agreeing to partial payments. Accepting partial payments can put you in a precarious position, if you're not careful. For me, I only set up a payment plan with tenants that have been renting from me for over 2 years. BUT REMEMBER, THIS IS NOT ALWAYS THE BEST OPTION FOR EVERYONE! Do your homework FIRST!
Fortunate for me, I have not yet had to evict a tenant that is on a payment plan. (There's a first time for everything in the rental business, I know.) It may sound a bit ironic, but I have found that the ones that set up a payment plan are not the ones getting evicted. It's the ones that don't care, that don't bother to set up a plan, that don't or can't pay.
As a landlord or property manager, have you noticed a shift in the market with your tenants?
Do you take payments from your tenants?
This article is authored by Sandy Shores, Melbourne FL REALTOR.
South Brevard County, Florida Space Coast.
that for you
1.jpg?1325278599)
;)
;)
;)
I have definitey seen more and more tenants having problems paying their rent on time. We always have to usual ones who never pay on time, but in the last couple of months the number has gone up! We do not take partial payments. On the other hand several tenants have broken their leases in the last couple of months due to jobs lay offs. Hopefully 2009 will be a better year!