Before you read my post you need to watch this video. Being a landlord for me isn’t this bad but sometimes…
So I receive my January statement from my property manager and I noticed that both of my tenants are lagging big time on their portion of the rent. The reason why I say, portion of the rent is because the two properties I own are occupied by section 8 tenants. Meaning, my tenants are only responsible for a small portion of the rent.
The property number 1 tenant now owes me $447 and the property number 2 tenant owes me $150. These numbers aren’t big but they aren’t small either. The problem I have is that I don’t want my tenants thinking it’s OK to not pay rent on time. If your tenants start to think not paying rent is acceptable, then they will use any excuse to not pay you rent.
So, when I contacted my property manager with my concerns he specified that both tenants said they will pay all of the back rented owed with their income taxes. I got a good chuckle out of this and that’s when I came up with the title of this post. I won’t keep you waiting any longer let’s get right into it.
“I will pay you back with my income taxes”
How could I not start off with this one. I was always taught that there was a clear hierarchy when it comes to things you need to take care of on a monthly basis. Food, shelter, utilities are my top three things to makes sure I take care of on a monthly basis. Apparently, my tenants think not paying rent is cool.
The funny thing about not paying rent or delaying rent when you’re on section 8 is that you’re playing with fire. Most of these people need section 8 to survive in some capacity. Getting evicted is a quick way to get booted from the section 8 program. Why even chance it? Don’t answer that. It’s the same reason why people go 100k into student loan debt to get a job that doesn’t justify the debt load or why people still have unprotected sex. Stupidity!
“I had to buy appliances!”
This gem came my tenant in property number 2. I’m not sure if I shared this with you folks but, after I “cancelled that bitch” like Nino (did you catch the New Jack City reference?) aka fired my property manager from hell. The new property manager and I found another home which fit the system. The numbers made sense so we moved forward with it. The tenant we selected for property number 2 only has to pay 150 dollars of her 825 dollar rent. Meaning, the good ol’ government pays the rest.
So why in hell did she miss her first months rent! I was really taken back by this one. Are you serious? So you mean to tell me, you work full time and get government assistance but you can’t pay me 150 dollars? Her excuse was.. “I had to buy appliances”.
Another thing many may not know is that in the area where we buy properties the landlord does not have to provide any appliances. I could provide appliances and possibly charge a bit more for rent but, I would rather not deal with fixing the appliances.
“I was sick!”
The tenant from property number 1 comes right back at you with another doosie. You didn’t think tenant number 1 was gonna let tenant number 2 win with the appliance excuse now did you? I think it was around the October time frame when I got the “I was sick” excuse.
I couldn’t stop laughing when my property manager told me this one. I told him to tell her that I tried the “I’m sick excuse” to get out of going to school when i was in elementary school and my mom saw right through it so, what makes you think it will work with your rent?
I had just the right medicine for her. I gave her a verbal warning that if she didn’t cough up the dough in 3 days she would be evicted. I guess I found the cure for the common cold because she found the money with the quickness!
Don’t trust your tenants as far as you can throw them. I’ve learned that my tenants will try anything to get out of paying rent. Tenant 1 is on thin ice. If she doesn’t come through and pay all her rent when she gets her income taxes she will be evicted.
Since people tend to respond to incentives, after the tenants pay their back rent I plan on implementing an award program for paying rent. The terms are simple. Pay your rent in full and on time for 6 months straight and you will get 100 dollars cash. I would rather give away 200 bucks a year then have to go through the eviction process and lose more money.
I only spent 2 minutes on real estate activities this month. Things tend to go a whole lot smoother after the renovation phase. We are currently working on deal 3. This deal is going to be the best deal yet. If the guy sends over the contract. I will have an entirely different post discussing it. Stay tuned!
What are your thoughts on my incentive program?
What is the craziest thing you heard a tenant say?