Thoughts on cancelling the lease of frequent delinquent late payers


#1

I’ve always been of the mindset that I don’t care in the least if someone pays late all the time and is constantly in eviction court, so long as they eventually get paid up and cover court costs before the balif shows up. It all ends up even in the end, and its not my job to judge.

In instances where a resident has a house that isn’t terrible though, I’m considering rethinking this. If someone is constantly behind on rent, they likely aren’t keeping their house up, and seem much more likely than the average resident to abandon a house years down the road that is a total wreck (letting roof leaks run, not take care of the furnace, etc)

The exception would be if the resident is in a 1960s-1970s home in mediocre shape, as I really don’t want that person to leave and have to deal with taking the home back and tearing it down or fixing it up.

Do any other park owners have a policy they feel strongly about on how to deal with a resident who frequently falls behind on rent and is in and out of eviction court?


#2

My community rules and my business practices are strictly enforced. Residents that pay late create work and cost money. I do not tolerate late payments. 3 strikes and they are out. I do not take ownership of homes, residents are responsible for selling their own home and when evicted are still responsible for lot rent until the home is sold and a new owner takes over lot rent. All my residents know the rules and as a result I have no late payments.
The reason tenants pay late is because landlords allow it. When they know the consequences they will find the money and pay on time or sell and move before they get evicted.


#3

Ditto what Greg said!

3 lates in a year and we terminate the rental agreement.

Do it once and the word gets out you don’t play. If you continue to allow late payments their friends in the park will start paying late too.

My pet peeve is when someone doesn’t respond to our 3 day notices.


#4

Demand for your spaces is great! When people are dying to get in, you know you have a good thing and you can keep everyone in line.

When you have 50% empty POH with 30% to remodel and rent is $750 for both home and lot, you are maybe losing even if you keep them filled for a year. If you are too much of a har*ass, vacancy will increase and you will sink the ship.

The problem with the problematic late payers is their lives are chaotic and they’re getting others to pay for them (Charity, social services, friends and family etc) when problems come up. You can reckon each case on its own merits. A plan to catch up which is not based on hope is a priority for a workout. Perhaps a workout will increase occupancy as you get satisfied customer referrals. If there is a lot of “churn” in your park you need to do something to not let people roll right over you to economic ruin. So YMMV.