Do you have tenants who just aren’t paying rent? It’s one of the most frustrating aspects of being a landlord. In this article, we’ll talk about how Chicago landlords are dealing with tenants who don’t pay rent…
Since the pandemic started this year many landlords have started dealing with tenants who aren’t paying rent. Unfortunately, for landlords there is very little recourse for dealing with tenants who aren’t paying rent due to the institution of national eviction moratoriums.
Of course, the best defense is a good offense – meaning that if you are careful about doing a background check on your tenants, and if you have a contract, then those things will help you. However, if you have a tenant already in place that isn’t paying then it is too later to put together a good offensive strategy so in today’s post we’ll cover a few of the choices you have when dealing with tenants who aren’t paying rent in the Chicago area.
#1. Avoid the situation
You could avoid the situation and hope they pay. This is definitely not the best option but it is an option that many landlords take. You can just ignore it and hope they’ll pay on time next month and maybe even catch up. Frankly, it may not happen (it rarely does) but it could happen so we’re including it here as a possibility. When dealing with tenants who don’t pay rent, we don’t recommend this strategy because it opens the doors to the possibility that your tenant will take advantage of you.
#2. Negotiate a “cash for keys”
If you believe the tenant will not be able to get back on track making rental payments then you can negotiate a cash for keys agreement. It may be difficult to pay someone off who owes you money but in most circumstances during the pandemic this option will be much cheaper than paying and waiting for an eviction to be completed.
#3. Lease modification
When your tenant(s) stop paying rent, you should do your best to communicate with them and find a mutual resolution. A detailed discussion should reveal the specific reasons your tenant is unable to pay rent and after you have all of the facts from them you may find that a simple modification to the existing lease will help them get back on track to making regular payments moving forward.
Another option is to sell. If this is just one of many frustrations you’re facing with your rental property then it could be your best option! Just imagine selling the property and getting on with your life – and not having to deal with tenants their annoying troubles any longer. Many landlords love the new-found freedom they get when they sell.
At Blue Ladder Development we buy frustrating rental properties from landlords like you who are burned out, worn out, frustrated, and who just want to get their lives back.