Comments on: When Tenants Don’t Pay (Part 2—The Reality, The Reason, and the Response) http://www.twowiseacres.com/property-management/when-tenants-dont-pay-part-2-the-reality-the-reason-and-the-response/ In Pursuit of the American Dream Wed, 01 Feb 2012 11:36:08 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Loncoln Real Estate http://www.twowiseacres.com/property-management/when-tenants-dont-pay-part-2-the-reality-the-reason-and-the-response/comment-page-1/#comment-20800 Loncoln Real Estate Sat, 25 Jun 2011 14:16:36 +0000 http://www.twowiseacres.com/2008/02/20/when-tenants-don%e2%80%99t-pay-part-2%e2%80%94the-reality-the-reason-and-the-response/#comment-20800 When Tenants don't pay the money is a big problem for the Real Estate Owners. When Tenants don’t pay the money is a big problem for the Real Estate Owners.

]]> By: sarah http://www.twowiseacres.com/property-management/when-tenants-dont-pay-part-2-the-reality-the-reason-and-the-response/comment-page-1/#comment-19888 sarah Mon, 23 May 2011 21:54:05 +0000 http://www.twowiseacres.com/2008/02/20/when-tenants-don%e2%80%99t-pay-part-2%e2%80%94the-reality-the-reason-and-the-response/#comment-19888 What do you do about late fees? I make it a contingency of suspending the eviction that all late fees and court filing fees for eviction be paid in full. I've never had anyone do that, though. They end up skipping out on the last month of rent, missing the court date, and I have to file a judgement suit against them to collect. What if you have a renter who says I can pay the rent but not the late fee- sorry. What then- do you accept the partial payment? What do you do about late fees? I make it a contingency of suspending the eviction that all late fees and court filing fees for eviction be paid in full. I’ve never had anyone do that, though. They end up skipping out on the last month of rent, missing the court date, and I have to file a judgement suit against them to collect.

What if you have a renter who says I can pay the rent but not the late fee- sorry. What then- do you accept the partial payment?

]]> By: Mike-TWA http://www.twowiseacres.com/property-management/when-tenants-dont-pay-part-2-the-reality-the-reason-and-the-response/comment-page-1/#comment-723 Mike-TWA Thu, 21 Feb 2008 03:11:23 +0000 http://www.twowiseacres.com/2008/02/20/when-tenants-don%e2%80%99t-pay-part-2%e2%80%94the-reality-the-reason-and-the-response/#comment-723 Chris, No argument taken. And you're right, of course, on the difference. I've read about assigning an interest through a trust, but have not done it myself. Thanks for the clarification. Chris, No argument taken. And you’re right, of course, on the difference. I’ve read about assigning an interest through a trust, but have not done it myself. Thanks for the clarification.

]]> By: Chris http://www.twowiseacres.com/property-management/when-tenants-dont-pay-part-2-the-reality-the-reason-and-the-response/comment-page-1/#comment-722 Chris Thu, 21 Feb 2008 00:33:16 +0000 http://www.twowiseacres.com/2008/02/20/when-tenants-don%e2%80%99t-pay-part-2%e2%80%94the-reality-the-reason-and-the-response/#comment-722 Mike, I don't mean to argue but I'm not really holding paper but rather assigning beneficial interest in a trust. Also, since these were rental properties that were bought for typically less than 70% ARV it makes no difference on my cash flow. Of course, it leads us back to the most important thing in investing in anything; you make your money when you buy. Mike, I don’t mean to argue but I’m not really holding paper but rather assigning beneficial interest in a trust. Also, since these were rental properties that were bought for typically less than 70% ARV it makes no difference on my cash flow. Of course, it leads us back to the most important thing in investing in anything; you make your money when you buy.

]]> By: Mike-TWA http://www.twowiseacres.com/property-management/when-tenants-dont-pay-part-2-the-reality-the-reason-and-the-response/comment-page-1/#comment-721 Mike-TWA Thu, 21 Feb 2008 00:28:06 +0000 http://www.twowiseacres.com/2008/02/20/when-tenants-don%e2%80%99t-pay-part-2%e2%80%94the-reality-the-reason-and-the-response/#comment-721 Patrick, Indeed, if I were to hire a property manager, the manager would have no discretion in the response. They simply could not accept a late payment, and they would have no need to discuss the issue with the tenant. That's really the key. In this role, the investor has to act exactly like what he is--a property manager. Thanks for the comment! Chris, Yep, that surely is another way to go. Selling and holding the paper. I still find that there's usually a trade-off. Less management, in general, means less returns. Thanks for weighing in! Patrick, Indeed, if I were to hire a property manager, the manager would have no discretion in the response. They simply could not accept a late payment, and they would have no need to discuss the issue with the tenant. That’s really the key. In this role, the investor has to act exactly like what he is–a property manager. Thanks for the comment!

Chris, Yep, that surely is another way to go. Selling and holding the paper. I still find that there’s usually a trade-off. Less management, in general, means less returns. Thanks for weighing in!

]]> By: Chris http://www.twowiseacres.com/property-management/when-tenants-dont-pay-part-2-the-reality-the-reason-and-the-response/comment-page-1/#comment-720 Chris Thu, 21 Feb 2008 00:15:30 +0000 http://www.twowiseacres.com/2008/02/20/when-tenants-don%e2%80%99t-pay-part-2%e2%80%94the-reality-the-reason-and-the-response/#comment-720 This is why I've relinquished most of my portfolio of rental properties. I've found it is much easier on me (as well as wonderfully legal) to owner finance the property to a qualified buyer using a land trust system. This is why I’ve relinquished most of my portfolio of rental properties. I’ve found it is much easier on me (as well as wonderfully legal) to owner finance the property to a qualified buyer using a land trust system.

]]> By: Patrick http://www.twowiseacres.com/property-management/when-tenants-dont-pay-part-2-the-reality-the-reason-and-the-response/comment-page-1/#comment-719 Patrick Thu, 21 Feb 2008 00:15:14 +0000 http://www.twowiseacres.com/2008/02/20/when-tenants-don%e2%80%99t-pay-part-2%e2%80%94the-reality-the-reason-and-the-response/#comment-719 Tough love. But in the world of being a landlord, it is a necessity. I don't own any rental properties, but I imagine this would have to be the best route to take. Otherwise, you will just open the door for more excuses and make it easier for them to repeat it. Tough love. But in the world of being a landlord, it is a necessity. I don’t own any rental properties, but I imagine this would have to be the best route to take. Otherwise, you will just open the door for more excuses and make it easier for them to repeat it.

]]> By: Mike-TWA http://www.twowiseacres.com/property-management/when-tenants-dont-pay-part-2-the-reality-the-reason-and-the-response/comment-page-1/#comment-717 Mike-TWA Wed, 20 Feb 2008 23:56:38 +0000 http://www.twowiseacres.com/2008/02/20/when-tenants-don%e2%80%99t-pay-part-2%e2%80%94the-reality-the-reason-and-the-response/#comment-717 Meg, Congratulations on the first rental, and thanks for the kind words. I hope you'll come back to let us know how you make out with this first one. Meg, Congratulations on the first rental, and thanks for the kind words. I hope you’ll come back to let us know how you make out with this first one.

]]> By: Meg http://www.twowiseacres.com/property-management/when-tenants-dont-pay-part-2-the-reality-the-reason-and-the-response/comment-page-1/#comment-713 Meg Wed, 20 Feb 2008 17:18:08 +0000 http://www.twowiseacres.com/2008/02/20/when-tenants-don%e2%80%99t-pay-part-2%e2%80%94the-reality-the-reason-and-the-response/#comment-713 I appreciate your insight. I just closed on my first rental property a couple of weeks ago, and I'm sure I'll be dealing with this issue sooner or later. I'd like to develop habits and standards immediately, and I like your policy of "no discussions." I certainly would be tempted to listen, weigh the excuses, and attempt to justify my policy by citing the lease. The fact is that I don't have to do that, and it's a waste of my time. I'm a landlord (landlady?), not a counselor or lender. I appreciate your insight. I just closed on my first rental property a couple of weeks ago, and I’m sure I’ll be dealing with this issue sooner or later. I’d like to develop habits and standards immediately, and I like your policy of “no discussions.” I certainly would be tempted to listen, weigh the excuses, and attempt to justify my policy by citing the lease. The fact is that I don’t have to do that, and it’s a waste of my time. I’m a landlord (landlady?), not a counselor or lender.

]]>