You hoped for favorable outcomes when you became a landlord in New York, but a recent issue forced you to question your decision. You have a tenant going through a rough financial patch, leaving the person unable to pay rent. What should you do?
Learn how to navigate occupants who cannot cover their financial obligations. There are solutions that benefit you and your tenant to protect your investment and the resident’s home.
Propose a different living arrangement
If your tenant cannot keep up with rent payments because she lost her job or has other cash flow issues, suggest a different living arrangement. Proposing that the person move into a smaller, less-expensive unit could help you both. You may also offer to help the person find a roommate or two if the occupant wants to stay in the current unit. If you have a great tenant going through financial troubles, protect your relationship by attempting to keep the person in your property.
Offer a variety of payment options
Maybe the tenant can only pay a portion of the rent. If so, offer structured payment options. Weekly partial payments can provide you both with relief, or you could prorate late fees and delinquent rent over the rest of the tenant’s lease.
Because you can expect to have tenants who cannot pay rent, consider adding a policy to leases that states you accept partial rent payments a single time a year. This way, tenants can let you know if they want to take advantage of the policy when they foresee cash flow issues.
Tenant issues are inevitable for landlords. Knowing what those issues are and how to overcome them is key to avoiding frustration.