Arizona tenant habitual late payer - 5 day notice to pay rent or quit? (apartment, breaking lease)
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Tenant is about 14 months into a 2 year lease and originally paid rent on time but I doubt has paid even once on time in the last several months. I have to beg and plead to get my rent payment, and then more effort to get tenant to pay late fees. So far I have eventually received full rent plus late fees but...
I have a vacancy this month, my late payer has not only not paid (big surprise) but hasn't even answered my emails. I am especially annoyed because I had to borrow money to have enough to pay my mortgages (that vacancy really hurts).
My question: Would it be a good idea to serve the tenant with a 5 day notice to pay rent or quit? I have a form I downloaded specific to Arizona, and will have to send it certified mail since I live out of state. My intent is to just maybe scare the tenant into better rent payment habits, although I'll admit it might have the reverse effect and anger the tenant into worse behavior.
If I do serve the 5 day notice am I obligated to continue with eviction proceedings or can I just drop it and hope it shook some sense into the tenant's head?
I'm also worried, I'm not handing the tenant a free get out of lease opportunity, am I? My understanding is that even after eviction proceedings and a judgement, tenant is still obligated by all lease requirements including breaking lease penalty ($400) and must continue to make payments, maintain yard and pool, keep utilities on (so I can show the house to prospective tenants, and of course the pool filter won't work without electricity). Of course I am obligated to make a good faith attempt to find a replacement tenant, which I will, and it shouldn't be too hard to find one since it's a nice house in a good neighborhood.
So what is your advice? Send the 5 day notice just as a scare tactic? Don't send it because of potentially worsening the problem? Or worst of all, get myself in a situation with a non-paying tenant refusing to move? -- My understanding of Arizona evictions is that the whole process can be done within about a month, but with a whole lot of hassle, court costs, legal expenses, etc.
All I really want is for the damned tenant to pay the rent each month by the due date (1st of the month). What is my best course of action? (Worst case: suffer until lease expires.)
I would phone them to discuss before I made any decisions. Emails just don't always work. There are also services that auto-pull payments from tenants accounts. Maybe look into that.
I can relate to your problem completely. I finally started routinely handing out pay or quit notices to all my tenants at the 2 day point, and most of them got the message and started paying on time. You're running a business and if you have to start financing tenants, they will start expecting it.
Your tenant doesn't pay you becasue you let it slide when he doesn't pay.
Whatever your state law allows on time period for pay or quit, the tenant should be receiving that threat to evict every time he is late. If he doesn't cough up the money then you follow through with the eviction.
You can not be a landlord and be afraid that your non-paying tenant will move out. There is very little a landlord can do to make a tenant behave and if you are afraid to evict, you have no leverage at all.
You need to make this tenant decide that when he doesn't have enough money to pay all of his bills, he chooses someone else and doesn't pay them because his landlord really will evict him if he pays late. Teach him that he pays his rent before he pays anyone else.
No, if you evict him he is out of his lease. But why are you thinking that it is better to have him stay and not pay rent?
If he doesn't pay, get rid of him and find a tenant who will pay his rent. It's not like the guy you have now is some sort of special treat that you can't live without.
We say "pay or quit" but what does your notice say? Does it say "pay or get out?". My state pay or quit says pay or have an eviction filed against you. Nothing about just leaving.
I have not been letting it slide. I've been repeatedly contacting tenant who usually says will pay by X date, and I have so far successfully collected late payment fees usually a few or several days later.
Until this month an email has always generated at least a reply telling me when I will get the rent.
Legally I can send a 5 day notice to pay or quit rent as soon as rent is late. In this case rent is due on the 1st so I can send the notice on the 2nd if I wish.
I think a phone call is in order since that is the option least likely worsen the situation. I can always bring out the heavy artillery later.
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My longer term plans: I'm out of state but have other business in AZ late in the month, and I'm going to do a surprise inspection (48 hour notice) and have a look to see if tenant is taking care of my rental house or are there other reasons for eviction?
Understand that eviction is not a good option for me right now since November/December is the worst season for rentals in AZ. January/February looks much better.
As much as I hate to evict, since I may be out a lot of legal hassle plus the prospect of 1-2 vacant months plus Realtor fees, I'm giving serious thought to turning up the fire under the tenant...
You see, in AZ or at least in the lease, late fees continue to accrue until the entire rent plus all late fees are paid. Let's say the rent is $2,000 due on the 1st and late fee is $10/day. If the tenant pays $2,000 on the 2nd, $10 is applied to late fees, $1,990 is applied to rent, and rent is still late. If tenant paid the late fee on the 3rd, that would pay the $10 due on the 2nd but now another $10 late fee would be due, and on and on. Yeah it sounds harsh but that's the way the lease reads, and my Realtor assures me my lease complies with AZ landlord-tenant laws (ARLTA).
So the idea is to at least get into a season when it's easier to get new tenants and then turn up the heat. Either the tenant will cut it and start paying on time, or I'll take my losses and force the tenant out and at least be done with the aggravation.
This is just stupid economics. Anybody with a brain knows you pay the rent and utilities first, and then eat peanut butter sandwiches for the rest of the month if necessary. Tenant probably has satellite TV, high speed Internet and for sure a cellphone. But apparently rent is last on the list.
I hate to keep collecting late fees because I'm sure the tenant can't afford it, but if the dog barks but doesn't bite, you end up ignoring the barking.
So probably a phone call, then if no results send 5 day notice via certified mail just to see if a sharper stick works. Then in January start apply the strict version of late fees continue until full rent plus all late fees collected. I'm pretty sure the tenant will have no choice except to break the lease and move to a less expensive rental.
It makes you wonder why a single tenant with one child would rent a premium 3BR house with a swimming pool instead of a 2BR apartment (and public pool).
No, if you evict him he is out of his lease. But why are you thinking that it is better to have him stay and not pay rent?
If he doesn't pay, get rid of him and find a tenant who will pay his rent. It's not like the guy you have now is some sort of special treat that you can't live without.
We say "pay or quit" but what does your notice say? Does it say "pay or get out?". My state pay or quit says pay or have an eviction filed against you. Nothing about just leaving.
I'm pretty sure tenant continues to be obligated to pay rent until I find a replacement tenant, lease breaking fee, etc.
I'll have to do some more research and/or get more advice. I've asked my Realtor to ask their legal department but not real sure I'll get much satisfaction there.
One thing for sure, if I keep turning up the heat something is bound to break.
(I just discovered my example notice is for the wrong county.)
It makes you wonder why a single tenant with one child would rent a premium 3BR house with a swimming pool instead of a 2BR apartment (and public pool).
But it also makes you wonder why one would even rent to a tenant who can't even afford the rent payments if they are screening for income of 3x the rent as one consistently implies that they do.
I would phone them to discuss before I made any decisions. Emails just don't always work. There are also services that auto-pull payments from tenants accounts. Maybe look into that.
There are services , really? c an you name this or post?
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