You purchased this investment property to either have some additional income from the cash flow today or to build equity that could be turned into long term wealth or both. Unfortunately, it can be a difficult and frustrating business. Managing tenants is maybe the most difficult part of the process of being a landlord. Most newer landlords hope and want to believe that their tenant will eventually pay the back rent that they owe. Unfortunately, that rarely happens. Here are some reasons why you should not wait and why you should evict your tenant now:
- Once a tenant sees that you are willing to allow them to be late on the rent, this will often become a habitual problem. They think that you as the landlord must have lots of money since you bought this building. Therefore, you can wait to get your rent. As we know, that is not true. You have bills to pay and you must keep your bills current or risk credit problems.
- If a tenant falls more than 1 month behind, it is unlikely that they will catch up in the rent unless they receive some assistance from a charity or governmental agency. If your tenant makes enough income or is not speaking to those agencies, do not believe that they are easily going to be able to produce more than 1 month’s rent. Start the eviction sooner than later.
- Remember that this is a business arrangement. You are not the tenant’s parent, guardian, or social worker. You have obligations to the mortgage company, utility company, and your own family. How can you let this tenant take food off our families table because they wont’ pay the rent?
Taking a firm, but respectful stance on collecting rent is a very important part of being a successful landlord. Failing to collect rent is no different than a retail store failing to charge you for the item you just bought. Find the eviction notice forms from the county and evict that tenant now.