How long do you Chase a
Tenant
One of the
more difficult parts of Property Management is chasing a tenant for the rent
every month. The best instinct, is to get rid of the tenant, but it is not
always that cut and dry. When you remove a Tenant you are now putting your
client (The Landlord) in a position of spending money to get a new Tenant. As a
small Property Management Company in Orange County Ca., my clients are more than just names on a management
agreement; I like to feel I have a personal relationship with each of them. I
feel my job is to make them money, so before I make the decision to get rid of
a slow paying Tenant, I make sure the Landlord is completely on board.
Just like
every situation in Property Management not all slow payers are the same. Some
Tenants are just chronic late payers, and having them pay a late fee is the
best way to get them on track. These Tenants many times make plenty of money;
they just always seem to make their rent a low priority.
The next slow
payer is the Tenant that is over their head, the rent that they have to pay is
just too much and they struggle every month. Charging them a late fee just
makes the situation worst. I really try and work with these Tenants and do my
best to convince them to find a new place to live. If I can get them into a
lower cost home and at the same time have them cooperate with me on filling the
soon to be vacant property, everybody wins.
The most difficult
slow payer is the Tenant that has just had their life situation change. They
have been paying their rent on time but now they are having difficulties. This
situation is difficult because it can go either way. I really work with these
Tenants and also keep the Landlord in the loop. Again charging these people a
late fee will do nothing to help the situation. This is where the Landlords
financial circumstance also comes into play. Some Landlords are very willing to
try and ride it out, but some can’t. I feel it is my obligation in these
situations to be completely honest with the Tenant and let them know what I am
going to be able to do to help them. Sometimes I don’t have the time to wait
for the Tenant to get back on their feet.
The most
important thing a Tenant must do is always be honest with me. That way I can
start to put a plan together. The problem is that Many Tenants do not let me
know what is going on and that is when my gut tells me to start thinking about
removing them. Once the rent is late my antenna goes up. If I am chasing you
every month there will be a point where I will have to move to the next step. The
one thing I cannot do is let a tenant go too long without payment. Even if the
Landlord wants to ride it out there is a point of no return. Making that
decision is very important, because if you let it go too long, it can cost the
Landlord a great deal of time and money.
Just like all of us, things pop up in Tenants lives that they were not expecting. Communication is
key. I feel that if we are communicating we will work things out. I visit properties frequently and really try and build a good relationship with Tenants, so they feel comfortable letting me know if they are having problems. But unfortunately no matter what I do, things don't always work out. Like I said this is a very difficult part of the job.