Do you have tenants that aren’t paying rent? Wondering if you should sell your rental property in Savannah? When you’re a landlord, one of the most frustrating aspects of owning a rental property is not receiving rent when it’s due. Let’s talk about how some Savannah landlords are dealing with tenants who don’t pay rent.
If you have tenants who aren’t paying rent, then you’re facing the same dilemma that many Savannah landlords go through at least once. It is incredibly frustrating because even though you aren’t receiving rent, you still need to make your mortgage payment. Unfortunately, your options may be very limited. If you find yourself in this situation, here are 5 steps you can take with tenants who aren’t paying their rent.
As the saying goes, the best defense is a good offense. Before you find yourself in this situation, you can make sure that you place the right tenant in your rental property. Perform a thorough background check on your tenants, have a rental agreement that is very clear and direct in their responsibilities will help. But once the tenants have occupied your rental property, here are some other options.
#1. Avoiding the situation
In my opinion, your worst option could be to just avoid the situation and hope that they pay. This is definitely not an option we would use or recommend, but it is an option that many landlords take. You can just ignore the situation and hope they’ll pay on time next month and maybe even catch up. Quite honestly, it probably will not happen (it rarely does) but it could happen so we’re including it here. When dealing with tenants who don’t pay rent, we don’t recommend this strategy because it opens the doors to the possibility that your tenant will take advantage of you. We DO recommend having a conversation with the tenants to understand what is preventing them from paying their rent.
#2. Negotiate with tenants
You could negotiate new payment terms with the renters because maybe they just need a different payment schedule. Some tenants may prefer to make smaller payments on a weekly or bi-weekly basis. Let’s face it, some tenants may have fallen on tough times (such as a job loss). You may be able to negotiate with them to do some work around the property in exchange for a discount on the rent or as partial payment. This article shows you how to document the work and properly claim it on your taxes.
Whatever you decide to do, make sure that a written agreement is signed that clearly states the new responsibilities of the tenant, otherwise, you’ll just feel even more frustrated when the situation continues to happen!
#3. Cash for keys
If everything else you have tried fails, then you can always try to get the tenant out of the property using the “cash for keys” method. This method is exactly what it sounds like, you are paying your tenant to move out and surrender the keys to the property. Sometimes people just don’t have the money to move out and find a new place to live. If you can get the tenant to agree to this method, it may cost you a few thousand dollars upfront but could save you 10 times that amount if you can stay out of court and reduce the amount of damage done to the property.
One of the final options you have is trying to evict the tenants. Be aware that this can be a complicated, time-consuming process that may involve some legal hassles too. Eviction is very costly and difficult to do, especially since many laws favor the tenant over the landlord. However, it may be worth doing this in the long-run if you can get a paying tenant into your rental property right away.
#5. Sell the property
The last option you have as a landlord is to sell your rental property. If this is just one of many frustrations you’re facing with your rental property then it could be your best option! Just imagine selling the property and getting on with your life – and not having to deal with tenants and their annoying troubles any longer. Many landlords love the new-found freedom they get when they sell their troubled rental property.
At Cash Homes Savannah we buy frustrating rental properties from landlords like you who are burned out, worn out, frustrated, and who just want to get their lives back.