BLACKMAIL OR SAVVY BUSINESS

Here’s the situation: the tenant has good credit, sufficient income but is going through a divorce. Emotionally tenant is depressed and as a result of this, income from his sales job declines and can’t make rent. After 2 months of promises to pay with nothing but excuses the owner's patience is gone and property manager serves a 3 Day Notice to Pay or Quit. Tenant pays a nominal amount through the tenant portal because the auto payment setting was not shut off. Property manager has to re-serve the 3 Day Notice to Pay or Quit and reset the clock before hiring the attorney to move forward with an unlawful detainer action commonly known as an eviction.

The tenant files a response to the U.D. so it will be 2 months to get to court. He is also threatening to file for bankruptcy and delay another month after the judgement and did I mention more attorney fees?

The tenant has 3 more months of no rent, about $1450 for a contested eviction, another $1000 to have it returned to State court from federal bankruptcy court. The tenant said that they would ask the court to seal the eviction so that they could find housing in the future. The court has just made it more difficult and greater risk for property managers and investors to find creditworthy tenants. Why are the courts helping tenants not suffer the consequences of their actions of not paying rent?

The savvy investor says let’s offer the tenant forgiveness of the back rent of 2 months, be out at the end of this coming month and we will pay you a month of rent, cash for the keys, and we will refund all of your security deposit. Total cost 4 month’s rent versus Legal system of 5 month’s rent and $2450 legal fees, clean up and repair cost unknown.

As the investor do you make the offer?

As the tenant do you accept the offer?