How long would you let a good tenant slide on the rent??

[Dottore]

It's a crap shoot.

Four months ago I agreed to a rent reduction for a restaurant tenant who spent an hour crying (literally) to me how bad business was, and how difficult it was to make ends meet.

In the end she was paying substantially under market—but she was happy (or so I thought)—and the karma was good (or so I thought).

Two weeks ago she rang me to tell me she's moving out on short notice to new premises that she has bought! I checked with my realtor, and it turns out she bought this place four months ago—and has spent the intervening time fitting it out and redecorating at vast expense.

Part of the business.

[desertt5]

I was forced into the retal business by not being able to sell my house in GA. The first renter turned into a squatter ( can't be called a renter if you don't pay rent). i tried workign with her, she had great sob stories. Found out her ex-husbands number via a friend. She is in debt for over $10,000 to others already. Luckily she let easily with no court required and house only needed a quick ckeaning. Kept her security deposit.

Second renter was great for 6 months, then later and later every month for the next 6. Wife flew out to check on house at end of lease. DIRTY as he!!. Kept his $1200 security deposit.

Latest is the widow of a Marine killed in combat with a little boy. (I actually put her husband in the Marine Corps). She stayed at my house for a few months with my wife when I moved out here to start my new job. Rent is direct deposited on the 2nd every month. I am losing money every month, but KNOW my house is taken care of and I am not paying the entire mortgage every month myself.

Renting a house 5 states away can be challenging to ssay the least.

[Rick Lee]

Originally Posted by desertt5

Renting a house 5 states away can be challenging to ssay the least.

Tell me about it. I got a bit of a shock when I went to see my rental in VA this past April for the first time in two years. I only rented it out because I had to. I'm only a hard ass on rent because I can't afford to carry that place very long without timely rent payments. Carrying it vacant for a few months this spring when I owed the IRS a phat check and was trying to close on another house here just about broke me. It really cut into my monthly guns and ammo budget.

[herr_oberst]

Originally Posted by Rick Lee

It really cut into my monthly guns and ammo budget.

You should explain your dilemma very carefully to your tenants.

[KFC911]

Originally Posted by sammyg2

It seems our ideas vary considerably on what a good tenant is.

Being a landlord isn't for everybody. Being late on rent, for someone with a proven track record, is "chump change", even if never collected, compared to the costs (typically unrecoverable) for a "bad tenant" imo. A "bad" one can cost tens of thousands at the drop of a hat . How's walking ALL over brand new high $ hardwood floors in golf cleats (house adjacent to a ritzy C. club fairway), "just because they can" sound? Not my tenant...whew!. I've lost money on a few, but when you get "good ones", they're like gold mines, and I don't like the gamble/hassle of "sweating the small stuff" which is what a few months rent is imo. If one can't "eat" the costs of doing business, they shouldn't be in the business (I realize sometimes it's not by the landlord's choice). All investments have risks imo...YMMV.

[billybek]

Originally Posted by Dottore

It's a crap shoot.

Four months ago I agreed to a rent reduction for a restaurant tenant who spent an hour crying (literally) to me how bad business was, and how difficult it was to make ends meet.

In the end she was paying substantially under market—but she was happy (or so I thought)—and the karma was good (or so I thought).

Two weeks ago she rang me to tell me she's moving out on short notice to new premises that she has bought! I checked with my realtor, and it turns out she bought this place four months ago—and has spent the intervening time fitting it out and redecorating at vast expense.

Part of the business.

I would have a hard time not telling everyone that would listen that her restaurant should be avoided if they value their health!
There are always users that will make it impossible to give breaks to those that really need one.

[Zeke]

Originally Posted by Dottore

It's a crap shoot.

Four months ago I agreed to a rent reduction for a restaurant tenant who spent an hour crying (literally) to me how bad business was, and how difficult it was to make ends meet.

In the end she was paying substantially under market—but she was happy (or so I thought)—and the karma was good (or so I thought).

Two weeks ago she rang me to tell me she's moving out on short notice to new premises that she has bought! I checked with my realtor, and it turns out she bought this place four months ago—and has spent the intervening time fitting it out and redecorating at vast expense.

Part of the business.

Now that's a douche nozzle!

[m21sniper]

Originally Posted by fastfredracing

I just let it go for 3 months. I dont know, I actually feel pretty good about it. In my ten years of landlording , she has been my best tenant. Older lady, keeps the place clean, rarlely gripes, and is real easy to get along with.
She has been late in the past, but she always called ahead to ask if it would be o.k. for x ammount of days, and she always paid exactly when she said she would.
I was getting nervous. She lost her job, and did find new employment, but fell seriously behind in the interim.
An eviction notice on the door was on my list of things to do this weekend, and then she called me tonight to tell me I could pick up the full ammount owed this monday. I am relieved, I hate screening new tenants, and she really is a good person who fell into a tough spot. She has been a tenant for 5 years with O problems in my book.

Mine let me slide for about 8 months while Workers Comp insurance was trying to starve me out.

When i finally got paid i gave him every dime in cash. Boy was he a happy camper.

[WolfeMacleod]

Remember a few months ago, I posted about a friend who had been here since September of last year? Well, he finally got a job and started paying up a couple months ago. Every extra penny he had went to me.
Although he moved out on the 1st of this month, he's still paying back what he owes.

[desertt5]

Originally Posted by KC911

If one can't "eat" the costs of doing business, they shouldn't be in the business (I realize sometimes it's not by the landlord's choice). All investments have risks imo...YMMV.

I agree. But I, like many others, was thrown into the landlord business by not being able to sell. I would have been much happier just breaking even or even a managable loss, IF I could have sold it.