Will you compromise with your tenants?
I have a tenant that pays his rent late every single month. In fact he doesn’t even bother mailing it anymore. I usually meet him somewhere depending upon my location. He pays with cash because we no longer accept checks from him. This is one compromise that landlords cannot afford to make. Too many bounced checks are never a good thing to your bank. He doesn’t want to get a money order because it costs too much. For tax reasons, cash is not the best way to conduct business. However, I would prefer to be paid then not. Did I mention he pays a late fee every month as well? This would be a serious problem if all tenants paid this way, so make sure word doesn’t spread to your other renters.
Compromise is what I’m getting at in this article. I make a little more every month but have to wait (sometimes weeks) to get it. Renting can be a hassle at times but there is no better way to own a house after 10-20-30 years and have someone else pay for it. That is a sacrifice I am willing to make. There are some scenarios however that compromise is not an option. My parents still own the first house they ever purchased. The current tenant has family members that are destroying the property. In fact they and are not supposed to be living in the house at all. This property is no longer generating positive cash flow not to mention the tenant’s breach of contract. It’s going to cost more to repair the property than what it grossed in two years. An eviction is not always necessary but if the tenant does not cooperate, it may be the only option.
Work with your tenants to come to an agreement that you both can live with. If you have a renter that takes care of your property and treats it like a home, you should be willing to work with them. We all go through financial difficulties and your tenants are no different.
