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7 Landlord Tips: When Your Tenant Can’t Pay the Rent

Get an Easy Qualify An Idaho Private Money Loan for Rental Property Repairs & Upgrades

The current pandemic is having widespread impact on the rental housing market.

Tenants are struggling to pay rent due to high unemployment and financial uncertainty, making it difficult for landlords, in turn, to cover their own expenses.

It’s an extraordinary time. If you’re a rental property owner, here are seven helpful tips if a tenant stops paying rent.

Tenant Can’t Pay the Rent? Follow these Landlord Tips

  1. Talk to your tenant: Begin with open dialogue. Communicating with your tenant to gain an understanding of their financial situation is the first step to finding solutions.
  2. Make a payment plan: Each tenant’s circumstance is unique. Work out a rental payment plan that will let them realistically meet the terms. (Be sure to put any agreement in writing.)
  3. Explore small business relief: Landlords may qualify for certain Small Business Administration (SBA) programs. Look into grant and loan options to help ease loss of rental income.
  4. Contact your lender: Mortgage companies will often work with landlords to create a new payment plan. Contact your mortgage lender if tenants are unable to pay. (Be prepared to provide proof.)
  5. Review your insurance: It’s always smart to revisit and comparison shop insurance policies – COVID or no COVID. But don’t reduce your coverage. Now is not the time to take on added risk.
  6. Research tax bill options: While property taxes will probably be due, it’s worth checking with your local municipality. Some are currently allowing deferment or payment plans.
  7. Avoid eviction: Many tenants today are dealing with financial loss beyond their control. Finding ways to work together is preferable over eviction unless property damage or criminal activity are issues.

Finance Your Rental Property with an Idaho Hard Money Loan

When finances are the most tight, conventional lending sources are often the least reliable. As hard money lenders, we loan based primarily on available equity. Your credit and income are secondary. If you need financing, talk to our experienced private money loan team. We work with real estate investors throughout Idaho helping make their investment goals a reality. Call Gregory M. Russell at 1-888-477-0444 or complete our simple online application form. We have made hard money loans for almost three decades and have a deep understanding of the fluctuations of real estate and the economy. We’re here to help.

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