Author Topic: Tenant not paying rent  (Read 3055 times)

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Offline sleepy5136

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Re: Tenant not paying rent
« Reply #15 on: August 12, 2021, 05:13:32 PM »
if we are about to become a landlord, what steps we can do to protect ourselves? lower the rent price to create a bidding war and ask for 2 month security deposit and 1 year prepaid rent?

This depends largely on where you are acquiring the property... tenant rights vary greatly depending on the city and state.  If you are unfamiliar with an area it's a good idea to hire a property manager initially to help you navigate the local market.

If you don't want to use a property manager than it might be a good idea to hire a local agent to help you with the process to find and screen a tenant.  Things to look for are good credit scores and high income but those just reduce the probability of getting a bad tenant, if you happen to get one there's generally not much you can do if it's in a tenant-friendly area like Socal/Norcal.

At the end of the day it's important to remember that missing out even a years rent is not really a big deal in the time horizon of owning an investment property... your payments are still paying down principal and your property will still appreciate in the long term.  And conversely if you're looking for something that needs to cash flow right away or make money quickly then a real estate investment is not your best bet to begin with.
I've been told high income doesn't necessarily mean the tenant is good. I've heard those higher income people are generally more PITA to deal with. Good credit is a must though.

Offline zubs

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Re: Tenant not paying rent
« Reply #16 on: October 22, 2021, 08:29:20 AM »
Need advice for a friend:  His story made me mad.

Tenant is an overseas student who stopped paying rent last year due to covid eviction moratorium.
Tenant now owes about $35,000+ in back rent
Tenant was going to be evicted in OCT due to CA eviction moratorium being over, but tenant paid OCT in full.

Can my friend still evict this leach?

Tenant says if evicted, he will have no where to go due to trashed credit from the 1 year of non payment.
The tenant stopped paying last year to take advantage of the COVID non evict moratorium.
My friend can't get landlord covid assistance because it wasn't a covid related stop payment.

What to do?
Property is in Riverside county if that matters.



Offline marmott

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Re: Tenant not paying rent
« Reply #17 on: October 22, 2021, 09:08:53 AM »
I’m confused, this is what the CA eviction memorandum says:

“Tenants generally are protected from eviction for nonpayment of rent due between March 1, 2020, and September 30, 2021, if that nonpayment is the result of a hardship related to the COVID-19 pandemic and the tenant has paid any required portion of the rent.”

The tenant is still required to pay 25% of the rent in order to be protected (Tenants are required to pay at least 25 percent of the rent they owe during the period September 1, 2020, through September 30, 2021).

He could have been evicted a while ago I would think.

https://www.courts.ca.gov/44660.htm: “ As of October 1, 2021, a tenant may be evicted for any legal reason, including failure to pay rent.”

Offline Mety

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Re: Tenant not paying rent
« Reply #18 on: October 22, 2021, 09:22:13 AM »
Need advice for a friend:  His story made me mad.

Tenant is an overseas student who stopped paying rent last year due to covid eviction moratorium.
Tenant now owes about $35,000+ in back rent
Tenant was going to be evicted in OCT due to CA eviction moratorium being over, but tenant paid OCT in full.

Can my friend still evict this leach?

Tenant says if evicted, he will have no where to go due to trashed credit from the 1 year of non payment.
The tenant stopped paying last year to take advantage of the COVID non evict moratorium.
My friend can't get landlord covid assistance because it wasn't a covid related stop payment.

What to do?
Property is in Riverside county if that matters.

If the tenant and the landlord both submit to that government  website posted by someone in previous page, the unpaid amount will be covered. The government will pay even though it might take about 1-2 months to process.

If possible, your friend should reject OCT payment in order to proceed eviction. Once the landlord receives any amount, I heard it might get complicated. It’s also important when the lease contract is due. If it’s past due, it’s easier to evict than still being in contract period. Also if the reason for tenant removal is because the landlord or the family member moving in, it’s better on the landlord’s side.

If your friend is thinking of eviction, he/she might already have the lawyer. The lawyer would know better how to handle this, but I also hear resolving with the tenant directly and forgiving some amount might be cheaper than going through the court and all that. If the tenant is really having a hard time, and the landlord is financially doing fine, then the landlord should be willing to work something out. But you never know if the tenant is just being sneaky and trying to take advantage of all sorts of “legal” terms.

Offline zubs

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Re: Tenant not paying rent
« Reply #19 on: October 22, 2021, 09:31:45 AM »
I believe the tenant actually paid the minimal amount, and did not go zero payment/month in the last year.
The tenant is using the CA law and moratorium to pay as little as possible to drag out his stay.
Tenant says he'll leave by end of year, but the dude is a liar.  I say better just kick him out.

The OCT payment was made in full so that my friend could not evict him.

The tenant also sub let some of the rooms in the house to make extra money in the past year.  Not sure if it's the case now.

I'm probably not getting the full story.  I would have evicted the dude long ago.
Friend says he's talked to lawyers about this case, but they have varying degrees of opinions.

I believe the tenant can pay, but since he's on student visa, doesn't care about trashing his credit in USA. 
So he's just making money off my fool of a friend.


.............and that's why you don't rent to people who don't care about their credit..............


Offline Compressed-Village

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Re: Tenant not paying rent
« Reply #20 on: October 22, 2021, 11:00:14 AM »
Beside run full credits and back ground check, I prefer family renters with younger children.

Once moved in and schools is good district, parents reluctant to move frequently and disrupt their children education. You will have a stable and long term renters.

Offline Liar Loan

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Re: Tenant not paying rent
« Reply #21 on: October 22, 2021, 12:25:28 PM »
USCTrojanCPA heckled me for selling my working-class area rentals near the beginning of this pandemic, implying that I may have missed out on lots of gains.  I'm wondering if he's read this thread.

Offline CalBears96

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Re: Tenant not paying rent
« Reply #22 on: October 22, 2021, 02:16:27 PM »
USCTrojanCPA heckled me for selling my working-class area rentals near the beginning of this pandemic, implying that I may have missed out on lots of gains.  I'm wondering if he's read this thread.

I was fortunate that my tenant kept paying rent.

But I'm tired of HoA (in Lake Elsinore) being really annoying, so I'm going to sell my rental when the lease expires next June. I bought the home end of 2005 (right at the peak), so I couldn't have sold it before the pandemic, but now it's finally not under water anymore.

Offline Mety

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Re: Tenant not paying rent
« Reply #23 on: October 22, 2021, 02:24:15 PM »
I believe the tenant actually paid the minimal amount, and did not go zero payment/month in the last year.
The tenant is using the CA law and moratorium to pay as little as possible to drag out his stay.
Tenant says he'll leave by end of year, but the dude is a liar.  I say better just kick him out.

The OCT payment was made in full so that my friend could not evict him.

The tenant also sub let some of the rooms in the house to make extra money in the past year.  Not sure if it's the case now.

I'm probably not getting the full story.  I would have evicted the dude long ago.
Friend says he's talked to lawyers about this case, but they have varying degrees of opinions.

I believe the tenant can pay, but since he's on student visa, doesn't care about trashing his credit in USA. 
So he's just making money off my fool of a friend.


.............and that's why you don't rent to people who don't care about their credit..............

I don’t know the full story either, but why did that international student dude ever rent a house? They would usually stay in smaller apartments or dorms.

Also if he does get out by end of the year, is he paying all those unpaid amount? If he really doesn’t care, he would just run back to his own country and never look back.

Compressed-village’s suggestion sounds good. Rent your house to a family with kids, not to some students.

Offline Liar Loan

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Re: Tenant not paying rent
« Reply #24 on: October 22, 2021, 03:56:28 PM »
I believe the tenant actually paid the minimal amount, and did not go zero payment/month in the last year.
The tenant is using the CA law and moratorium to pay as little as possible to drag out his stay.
Tenant says he'll leave by end of year, but the dude is a liar.  I say better just kick him out.

The OCT payment was made in full so that my friend could not evict him.

The tenant also sub let some of the rooms in the house to make extra money in the past year.  Not sure if it's the case now.

I'm probably not getting the full story.  I would have evicted the dude long ago.
Friend says he's talked to lawyers about this case, but they have varying degrees of opinions.

I believe the tenant can pay, but since he's on student visa, doesn't care about trashing his credit in USA. 
So he's just making money off my fool of a friend.


.............and that's why you don't rent to people who don't care about their credit..............

I don’t know the full story either, but why did that international student dude ever rent a house? They would usually stay in smaller apartments or dorms.

Also if he does get out by end of the year, is he paying all those unpaid amount? If he really doesn’t care, he would just run back to his own country and never look back.

Compressed-village’s suggestion sounds good. Rent your house to a family with kids, not to some students.

The credit report is the single best predictor of whether they will pay or not.  I'm assuming an international student doesn't have any credit in the US, so I would not have rented to them.

On the other hand, if you say you will only rent to families with young children, you open yourself up to discrimination lawsuits.  It's better to consider all candidates equally by having a written set of criteria you follow when deciding on renters, then choosing the first application that meets that criteria.

 

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