When it comes to real estate, you may start losing money if your tenants stop paying rent. When a tenant does not pay on time, what can you do about it?
The U.S. News explains that you can take moves against tenants who do not pay on time or at all.
Discuss options with your tenant
If your tenant reaches out to you, you may be able to maintain a good relationship and receive payment. You may want to consider offering a flexible payment plan or accepting partial payment if the tenant has a temporary financial struggle. In some cases, landlords allow their tenants to use the security deposit to pay rent.
Consider eviction or refuse to renew the contract
If your tenant either remains late with the rent or never pays you, you may have to consider more drastic routes. If you cannot rely on the tenant to make payments, you can notify him or her that you do not want to renew the contract. Habitual lateness can hurt your bottom line if you cannot pay your bills.
For those who refuse to pay rent, you can begin the eviction proceedings. Before starting the proceedings, make sure your tenant cannot argue that your property did not meet habitability standards. Tenants can fight an eviction filing if they have issues with the heating system, the door’s locks, the windows and sinks.
If you have to escalate the situation to an eviction, keep in mind that every step in the process matters. One mistake can cause the court to dismiss the eviction.