Lease Option tenant already defaulted. Next steps?

[KCHomebuyers]

Well, we screened our tenants very thoroughly, checked credit, bank accounts, past landlords, etc and these guys came up with a good ranking as far as lease op tenants go.

They paid their option fee (cha-ching!) and a couple prorated weeks so they could move in early. Well, that's all we've gotten, and now that they've missed the first lease payment they don't answer the phone. The end of this month will be 15 days past due.

I guess we all have to have our first non paying tenant, but that was sure quick. At least the other tenants we've got are doing well (knock on wood).

So here's the question - Now that I've left a couple voicemails on the home phone and the work phone, what's the next step in resolving the problem? I'd hate to be too hasty and file Dispossesory but at the same time we've got to get the $$ or they got to move on.

Is it appropriate to make a home visit o try and resolve the issue or do you go straight to the registered mail?

Any tips are appreciated. Thanks!

[exec927]

KC,


This is your business and you need to do everything in your power to keep your business profitable and producing profits.

Go straight to the registered mail. If you like, on the way to the post office, stop by to see what is going on. Or you can also send them a warning by posting it in person at the house. Give them a day or two and if they don't respond you will need to take action in the form of a Dispossesory.

[Debbie]

Pat,

As a landlord, I must agree with Exec.

You done all you can do without to the point of "harrassment" or "confrontational" (tenant's mindset).

Keep it business. Deal with them via attorney and court.

[Jim FL]

Pat,
I'm not familiar with landlord tenant law in your state, not specifically anyway.
So, what does it say?
In most states, when a tenant is late for rent payment, and being late is the first date after the due date, what notice is to be served?
Here, we serve the tenant a notice, or post it on the door if the tenant is not answering or around.
For us, its a 3 day to pay rent or move notice.

Whatever the statutory requirement for evictions, get on it, and follow the law to the letter.
If you need to serve someone a notice to pay, do so now, and if you've never evicted before, use an attny. who specializes in evictions.

Local landlords can refer you to someone local of quality and decent cost.

Like others said, this is your business, and when tenants don't pay, you are working for free.

Would the tenants work for two weeks, and then forego a paycheck?
Will your lender let this months mortgage payment slide because the tenants did not pay?

Nope.

Trust me, it's easy to begin an eviction, and just as easy to stop one.
Being a business owner, and landlord, you don't have to be a tyrant either.
Should you begin the eviction and for some reason the tenant makes things right, you can always abort the eviction as well.
My lease makes it pretty clear that if we do that, the tenants must pay my costs, as additional rent, plus the late rent, and late fees......if, I choose to accept it.

HTH,
Jim FL