Management
A Quick Eviction Notice Often Means No Eviction At All

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 but it’s not always easy. Smart 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.

You already know the most important rule - Always Screen Your Applicants
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?”). 

You already know the second rule - Collect the rent on time
So, why do so many of us wait until the second or third week of the month to deliver the Three Day Notice? A very common phone call to The Florida Landlord Network is: “I need to evict my tenant because he hasn’t paid the rent”. We ask:  “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.  Nevertheless, 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 day of the month?  -- 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 live paycheck to paycheck
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 your tenant when you 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 he can't climb. 

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.)

Smart 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 Florida law provides for a warning period, of three. 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 eviction 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 eviction 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 deliver the eviction notice and loose another week.

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 right 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. Now, you've got all of his money and he can't move!  He will be highly motivated to catch up and never try to outsmart a smart landlord!  Note:  In general, Florida does not restrict evictions when partial rent payment is made.

So you see, landlording is a simple business

It’s not always easy. Smart 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.

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Disclaimer: Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. AAOA recommends you consult with a financial advisor, tax specialist, attorney or other specialist who is able to properly advise you.