Florida Landlord Network

Making Better Landlords

Banner
It's Simple. Why Wait?
It's Simple.  Why Wait?
Landlording is a simple business.  Buy a home, find a tenant, collect the rent, and fix the stuff that breaks.  Simple!  Compare that to owning a retail store where you face 18 hour days, six sometimes seven days a week.  Think of the huge investment in inventory; and, what to do with Christmas ties that were red hot June, now even Santa can't give them away?

Landlording is a simple business.  It's not always easy.  Successful landlords have learned there are a surprisingly small number of simple but critical rules.  Follow them and your success rate will soar and a simple business gets easier.eviction-1.jpg

You already know the most important rule.  Still, it's incredible how few landlords do any kind of tenant screening.  (See last month's article: "Why would you give the keys to just anyone"?).

Tenant screening is simple.  Call the previous landlord and verify the information given to you by the applicant.  If you discover he is lying don't give him the keys.  If he didn't lie then start collecting the rent and fixing the stuff that breaks.  Simple!

You already know the second rule.  Collect the rent.  So, why do so many of us wait until the second or third week of the month to contact the tenant?  A very common phone call to The Florida Landlord Network is: "I need to evict my tenant because he hasn't paid the rent". "How far behind is he"? "A couple of months?"

This landlord's problem is simple to see.  He should have started the eviction a long time ago.  But when?  When is the right time to start the eviction?

Usually the rent is due on the first of the month.  When is it late?  It's late on the second.  Your lease may include a late fee that hits on the fifth but the rent is due on the first and late on the second.

Consider this situation.  Your fairly new tenant hasn't paid the rent on time.  Carefully consider the next question before you read any further:  What is the worst thing that can happen if you begin the eviction process on the second?  Stop and think.

I've never been able to think of a single bad thing that can happen by starting the eviction process on the second day of the month; plus, there are some very good reasons to do just that.  Here are a few.

The majority of renters don't have any money.  If they did they wouldn't rent.  Many get regular calls from collection agencies, from "The Hook" (that's what they call the guy who's coming with the tow truck to repossess the car), the electric company and lots of others.  They rarely have enough money for everyone so they look for an easy creditor.  Too, often it's the landlord.  And you know, you can catch up on a lot of other bills if you skip the rent.

Bad things happen to our tenant when we let him pay the rent late. First, the late fees kick in.  Now the rent is even harder to pay.  Plus, now it's the 10th of the month and he doesn't get paid again until the 14th and all of his other bills are usually paid out of that check.

He realizes he won't have the rent money until his next paycheck on the 28th and next month's rent will be due just two days later.  To your tenant this is no longer about the $900 rent.  To him it's a $1,850 mountain.

Then, he begins to remember why he doesn't like living there any more.  The place is dirty and the lawn needs to be mowed again.  He doesn't like the neighbors or the landlord . . . and how he can reap a $1,850 windfall if he keeps the rent and moves.  This should be easy because most landlords don't do effective tenant screening.

Successful landlords avoid this by starting the eviction process on the second day of the month every time.  Now, just because you start the eviction doesn't mean you must evict.  In most states the law provides for a warning period, often three to five days.  That's plenty of time for the tenant to call and explain the why they are late.

Often the tenant will say he is sorry, try to explain his predicament, and promise to pay on the 7th and then ask: "will you work with me"?  Your response should be sure.  Here's the warning notice.  I'll see you on the 7th.

So what happens if the rent is paid on the 7th?  Nothing, you've got the rent and the tenant has learned you are not "the easy creditor".  He probably won't try that again.

What happens if he doesn't pay on the 7th or the 8th and doesn't call?  Simple!  Since you've already delivered the warning notice you can file the eviction in court right now.  Foolish landlords, who say they will wait until the 7th and then don't get paid, have to file the warning notice and loose another week or two.

Here's another idea.  If you tenant calls to say he won't have all of the rent until the 10th, ask him how much he has now.  If the rent is $900.00 and he has $500.00 now take it!  It may be the last money you ever see from him.  Plus, if he doesn't give it to you he might keep it for himself and move.  (See story above).

Note, some states restrict evictions when partial rent payment is made, so consult applicable law; but in many states, you can successfully prosecute an eviction if full rent has not been paid.

So you see, landlording is a simple business.  It's not always easy.  Successful landlords have learned there are a surprisingly small number of simple but critical rules.  Follow them and your success rate will soar and a simple business gets easier.

###
Paul Howard is the President of The Florida Landlord Network and Florida Eviction Service
He may be reached via email at: This e-mail address is being protected from spambots. You need JavaScript enabled to view it