As the owner of a single-family rental home, you know how important it is to have a signed rental agreement between you and your tenant that outlines things such as the lease period and the amount payable every month. Each party is supposed to abide by the rules stipulated in the agreement until the lease period ends. However, in some situations, a tenant may go months without paying rent, and this is usually against the terms of the rental agreement. Depending on the situation, it can be hard to know what to do when a tenant hasn’t paid rent in several months, here are a few tips:
Talk to Your Tenant
In most property management cases, no sane tenant stops paying rent for absolutely no reason. With this in mind, talk to them to find out why they haven’t paid rent for a long period, and when they intend to pay what they owe. Some of the reasons for tenants to stop paying rent include, among others, unsafe living conditions, intention to break the lease, and financial constraints. For instance, due to the COVID-19 recession, a whopping 5 million Americans were not able to pay rent in December 2020, as per the Research Institute for Housing America. That said, knowing the reason why your tenant isn’t paying rent is the first step towards finding a solution.
Give a “Pay or Quit” Notice
If your tenant fails to pay rent, the federal landlord-tenant code requires that you send them a “pay or quit” notice. This is a formal document that instructs the tenant to either pay the rent arrears within a few days or vacate the property. Before you give this notice, ensure you are ready for the next step if the tenant opts to vacate instead of paying the arrears. Some tenants may opt to leave considering the short period they are given to pay up.
Send an Eviction Notice
Considering the financial and time expenses involved in the eviction process, this should be your last resort when all other avenues have failed. You should send a formal letter to the tenant instructing them to vacate your property. This letter needs to be given at least 30 days before eviction can be enforced. Also, be sure to present the “pay or quit” notice you sent earlier as well as other documents to the court. Currently, there is still an eviction moratorium issued by the CDC that will last until June 30, 2021. This means that some of your tenants may qualify for protection under the moratorium, and you will not be able to evict them until it ends.
Contact Specialized Property Management Birmingham
Collections and evictions are one of the most stressful situations for a rental property owner. If you find yourself in interested in hiring a professional, consider hiring Specialized Property Management Birmingham to help protect you and your revenue stream. We work harder than any other to make sure you get your rent payments on time, and if tenants aren’t following through, we handle the eviction process and the new tenant screening process immediately after. For more information or to get a quote, call us at 205-417-1475 or contact us online today!