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Reading this twice (3x?) revived thread makes me wonder what the OP's initial goal was? Now that ... a year later... NOTHING has changed, do you feel vindicated? You say you got another year of rent.. At the expense (I'm sure) of some anxiety and TIME (and for me that's $$/hour I will not get back). Maybe next time you will realize this is a business and you owe no one any favors or concessions. Pay rent or GET OUT. But that's advise, and my time, and I'm sure will get lost.
The advice wasn't wrong you just delayed your problem for the last 9 months. Now you have put yourself in an even worse situation. Had you moved to evict from the begining you would have either made it clear that you are his priority and his games would have stopped then or you would have gotten a good tenant to replace him.
True, although it will work out okay in the end.
I issued the notice to evict five days ago and if he doesn't pay by today he will be gone.
At that point I will break my lease where I'm currently renting, which will cost me $2,500 and will move back to my home. I will gladly pay that money in order to get out of this area, which I hate, and move back to my home. It actually ended up being a good thing that this guy is a deadbeat since I can now move out of this area where I'm not happy at all.
Reading this twice (3x?) revived thread makes me wonder what the OP's initial goal was? Now that ... a year later... NOTHING has changed, do you feel vindicated? You say you got another year of rent.. At the expense (I'm sure) of some anxiety and TIME (and for me that's $$/hour I will not get back). Maybe next time you will realize this is a business and you owe no one any favors or concessions. Pay rent or GET OUT. But that's advise, and my time, and I'm sure will get lost.
When I request advice and people are nice enough to provide feedback (positive or negative) I do take it seriously. When I have a problem I have to lay out all of the options and then determine what I feel the best course of action is. My experience with this particular issue is limited which is why I come to a forum like this. I proceeded the way I did back in July because I did not want to look for another tenant and this tenant had the means to pay the rent, eventually.
What has changed is that my company has allowed me to move back to the area where this home is so I do feel vindicated in getting 10 months of rent out of this individual, as that was not an option last July. Now that I have that option, I do feel better about evicting this individual. Thanks to the advice of others here I did research the state eviction laws and what the process entails as I was not familiar with it at all last year. The recent advice also helped me look into breaking my lease where I live now. This should have been obvious to me but something I was overlooking. In looking over the lease, the terms aren't very favorable to me but I'm happy that I will no longer have to live in this area as I am not happy here at all.
This is a business and one I have/had been forced into due to circumstances associated with my job situation. If it happens again I will sell the house as I will not deal with renting out a home again. It's not a business I ever wanted to be involved in and now I have the financial means to avoid it. In the past I was forced to do this as I needed the money and/or I was unable to sell this home due to the housing market or having to recapture the depreciation. I have to live in this home for the next two years in order to avoid recapturing the depreciation due to the conversion back to personal use.
Thank you to everyone who has provided feedback, positive or negative. I do read it and take it seriously.
I have a tenant who started a two year lease in April. He has just now informed me that he will not be paying rent this month (Rent was due on the 1st) due to problems he has run in to with the IRS. I don't know all of the details, but apparently he had a business in the past with five partners. The business went bad and now they are holding him accountable for the liabilities.
He's a salesman now and he makes a good salary. He makes $7,000+ a month in commissions (I saw the checks from the company), but this is all being held by the IRS. Right now, he has $250 to his name. He told me that he will apply for hardship with the IRS as right now they are not leaving him with enough money to live on.
Has anyone here run into problems like this? If so, what should I do?
I have someone who manages the place, as the home is 200 miles from where I currently live. He has been involved in real estate since 1978 and he told me that I should probably give him until the end of the month before issuing a notice. I'm not entirely familiar with the eviction process and this is something that I hoped I would never have to deal with.
I really don't want to go through the process of renting out this house again but I can't have him living there if he can't pay rent. I have an existing mortgage on that house and rent that I have to pay on my own apartment so I really can't afford to go too long without someone paying rent.
On a personal level, I also really don't like this guy. He has been nothing but a headache since he agreed to rent the place. He had me revise the lease four times (his father is a lawyer) over rather petty issues. He also threw a fit about the carpet AFTER he signed the four time revised lease since he didn't think it was clean enough and wanted the carpet in the house replaced. I informed him that I was in no position to pay 5-6 thousand dollars to replace the carpet. He had seen the house MANY times before signing the lease and never mentioned this once to me. I told him if that was an issue, we could have just gone our separate ways before even discussing a lease. I had shown the place to numerous people and there wasn't a shortage of people who were interested in renting the place.
This is the fourth time I've rented out this house and none of the other tenants were this difficult to deal with. When I show the house to people, I let them know that this place was right for me since I'm single and don't have any kids, but it may not be right for you. I let them know that I want people that are happy with the place and don't just feel like they are settling to live in a place where they really don't want to be. The only reason I am renting this house out is because I was forced to moved due to a new job and could not sell the place.
Any advice would be appreciated. Thanks!
Even if IRS took all his money (they can), he should be able to take a loan from friends, parents or from somewhere else to pay for the roof, or well - if he can't then it shouldn't be your business. Also, 7K in commissions might be in the past, it is more likely than not dried up when the company got into trouble. And I also don't think IRS will take 95% of his disposable income, there might be some other trouble there...
Given the fact, you don't like the guy - I'd say START KICKING HIM OUT. It's a lengthy process, and
if he finds the money to pay, you shall be able to still charge him late fee to cover your expenses, and if not - you'd be glad you did not give him more credit.
When I request advice and people are nice enough to provide feedback (positive or negative) I do take it seriously. When I have a problem I have to lay out all of the options and then determine what I feel the best course of action is. My experience with this particular issue is limited which is why I come to a forum like this. I proceeded the way I did back in July because I did not want to look for another tenant and this tenant had the means to pay the rent, eventually.
What has changed is that my company has allowed me to move back to the area where this home is so I do feel vindicated in getting 10 months of rent out of this individual, as that was not an option last July. Now that I have that option, I do feel better about evicting this individual. Thanks to the advice of others here I did research the state eviction laws and what the process entails as I was not familiar with it at all last year. The recent advice also helped me look into breaking my lease where I live now. This should have been obvious to me but something I was overlooking. In looking over the lease, the terms aren't very favorable to me but I'm happy that I will no longer have to live in this area as I am not happy here at all.
This is a business and one I have/had been forced into due to circumstances associated with my job situation. If it happens again I will sell the house as I will not deal with renting out a home again. It's not a business I ever wanted to be involved in and now I have the financial means to avoid it. In the past I was forced to do this as I needed the money and/or I was unable to sell this home due to the housing market or having to recapture the depreciation. I have to live in this home for the next two years in order to avoid recapturing the depreciation due to the conversion back to personal use.
Thank you to everyone who has provided feedback, positive or negative. I do read it and take it seriously.
That rule is for capital gains not depreciation recapture and isn't as simple as people make it sound so look into it before you make that decision.
Last edited by AZ Manager; 06-01-2017 at 12:19 PM..
I issued the notice to evict five days ago and if he doesn't pay by today he will be gone.
He is not gone until a Judge says he's to go and he actually leaves or the law throws his stuff out. Ion the mean time, he can be preparing a loaded defense and use your inaction in the past against you. Heck, a Judge may say he's never missed the rent only been late (which you willingly accepted without every serving notice) so you have to continue accepting it late, or gives him one more chance to start paying on time. You never really know until you walk out with the signed Eviction Order in hand.
OP you yourself have admitted you came looking for help. Here is some advice, you need some. Legal I mean. You have gotten yourself a possible professional deadbeat renter here. And your lack of knowledge of depreciation recapture versus capital gains losses makes me worry for your finances.
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