Are you a landlord tired of tenants who are habitually late on their rent or simply not paying at all? Now, I know that COVID-19 has made things tough for people to pay their bills, so I am not talking about renters who are in a jam because of the worldwide pandemic. I am talking about fast talking tenants who never pay their rent, month after month – always giving you a new excuse.
You are facing a dilemma that is all too common for landlords across Maryland. It’s frustrating and unfortunately, your options are limited since Maryland is a very tenant-friendly state.
Don’t give up hope just yet though. I’ve got some tips that will help you if you are struggling with rent issues at your Maryland investment property.
Hopefully, you only accept tenants who pass a strict background check, who give you a deposit equal to at least one month’s rent and you have verified that they have a consistent source of income. After all, it is your rental property and you have the right to choose any tenant you want to live in your investment. Unfortunately, even with a solid lease in place problems sometimes arise when it’s time to collect the rent.
Here are four easy tips for dealing with non-paying tenants:
AVOID THE SITUATION ALTOGETHER
So many landlords use this strategy and it is certainly not recommended. Most of the time the problem is not going to just go away if you ignore it. You need to be proactive with your investments. After all, you spent good money acquiring the property, doing a rehab and soliciting for tenants. Ignoring a non-paying tenant will negate all of your hard work. And guess what? If you do nothing, I guarantee the tenant will do nothing also and just hope you don’t do anything to rectify the situation. DO NOT BE COMPLACENT.
NEGOTIATE A NEW PAYMENT SCHEDULE
At some point a landlord needs to decide on the best way to stay profitable. Especially in the current coronavirus world, it’s a much easier proposition to take some money as opposed to no money at all. Negotiating a payment plan is a good compromise between ignoring and evicting. But proceed with caution because the end game is to make sure that the tenant has the ability to catch up on what is owed in a reasonable time frame. And PLEASE make sure than any payment plan is backed up by a written addendum to the existing lease.
Sadly, eviction is sometimes the only option remaining. Remember, you are in the business off renting for profit and a delinquent tenant can prevent that from happening, month after month, if you are unable to reach another compromise. Be forewarned though – evictions are often difficult, especially in states like Maryland where the laws most definitely tilt in favor of the tenant. If you go the eviction route, be prepared to weather the storm for a few months and make sure you have plenty of supporting evidence so that the courts have no choice but to rule in your favor. In this situation, the name of the game is closing the gap as quickly as possible between when the tenant is given notice to when they legally have to vacate the premises.
JUST SELL, BABY!
Sometimes it’s just better to cash out and sell your rental property. If none of the aforementioned solutions are working, it’s often best to determine an acceptable price, take the money and move on to the next project. Problem tenants, excessive repairs, property management company fees and sleepless nights worrying about your property sometimes just aren’t worth the hassle.
At Brad Buys Houses / We Buy MD Homes, we buy rental properties from landlords like you all of the time. We buy with cash, we close quickly and we pay all of the costs and fees at settlement. Most importantly, we solve your problem. If you are a tired landlord or just want to cash out of an investment property, please fill out the form at www.webuymdhomes.com or call us at (240) 424-0423