The number of households that have fallen behind on rent payments is at unprecedented levels. As eviction protections expire and past-due balances continue to grow, you may face a point where you have no choice but to turn non-paying tenants out. As you do, however, keep these three considerations in mind.
1. Assistance Programs Available in Your Area
There are numerous assistance programs available to help both tenants and landlords. Educate yourself on the options in your area and work to connect with them. Find out qualifications and what documentation is necessary to process an application, then provide this along with organization contact information to any tenants who are having trouble paying their rent.
2. Alternative Arrangements to Recover Lost Rent
Sometimes, you can work out alternative arrangements to make up for lost rent. If your tenants have a valuable skill — such as landscaping, business management or housekeeping — consider bartering with them instead of collecting a dollar amount for rent. You will save the cost of hiring those services out, and you will avoid putting a family out on the street.
3. The Cost of Turning a Property Around
While thinking about possible damage to a rental property isn’t fun, it is a reality. From carpet cleaning and chemical free odor removal to drywall repair and fresh paint, the cost to clean and repair a home to make it suitable for rent can quickly surpass how much back rent you are owed.
You became a landlord to earn extra income, not to take on added debt. However, eviction isn’t always the best solution for a non-paying tenant. You need to keep potential pitfalls in mind when starting that process. Helping tenants find assistance programs, working out a payment schedule for past-due rent or accepting services in lieu of money may be able to solve the problem instead.…