One of the main reasons why people go into the rental business is because of the income they can get from it. The rental payment pays for the bills, property maintenance, but it must have enough leftover as your profit. That is why getting paid every month is a must. But what happens when a tenant is unable to pay?

As much as possible, landlords would want to avoid evicting tenants, particularly good tenants. What I mean by good tenant is one who never failed to pay rent and has never broken any of your lease policies.

There can be reasonable factors that can lead to unpaid rent. Maybe your tenant just happened to get caught in an unexpected financial dilemma. He may have lost his job, or he had to help in the medical expenses of a sick relative.

Unpaid rent will negatively affect your business, but you should not impulsively decide to evict good tenants. You do not want to risk losing them and having to look for a replacement just because of a small and temporary setback. Let me list down the things you can do if you get caught in this kind of situation.

• Refer them to organizations that can help

No one can predict the future, so even if your tenant has a clean record, unfortunate events can still happen that would hinder him from paying rent on time.

You can refer them to emergency organizations or charity that can help with this type of situation. He will have to comply with some required documents. Hopefully, they can assist your tenant so that he can slowly pay you back.

• Talk to them

One way of dealing with tenants with unpaid rent is to talk it over with them. They have to know the gravity of the situation and the possible consequences they may face if it continues. You should set a specific deadline for payment before you start the eviction process.

That will motivate them to act on the problem. Struggling people sometimes need to be reminded that they need to do something with their problems, other than whining about it. It is best to talk to them and make them aware.

• Lessen payments

You might be a little concerned about your profit, but maybe you can make some adjustments to the amount of rent.

For example, your tenant has always been able to pay rent but now has to help finance the medical bills of a loved one. If you think that you can still earn an income, you can try to lessen the price to make it more affordable for them. Less income is better than none.

However, be very careful. Make sure that other tenants would not know because it might set a bad precedent. Also, make it clear to your tenant that the discount only applies to the current month’s rent. Consider this option carefully first and only give this privilege to tenants who really deserve it.

• Repayment

Your tenant can owe you a few month’s worth of rent, and paying it in full can be difficult for them. Do not worry. You can come up with an arrangement that is fair to both parties.

For example, the tenant who lost his job has just started a new one and is now able to pay rent again. Rather than asking for the full amount they owed, you can suggest that they pay you in installments. Aside from the monthly rent, they will pay you an additional amount. It might take a while for the debt to get paid in full, but it will help your tenant avoid financial trouble.

Evicting a tenant, especially a good one, should always be the last option. Sometimes the tenant will be able to overcome a financial struggle, but if they are not able to do so despite the adjustments you have made for them, then that is the time to push through with the eviction process.

It will be devastating to lose a good tenant, but you also have to consider your investment. The best thing to do is to move forward, create a new property listing at Padleads, and syndicate it to other web pages. You can look for more good tenants.