How can you talk to tenants who can't pay rent?

1 Communicate early and often

The first step is to communicate with your tenants as soon as possible when they miss a payment or notify you of their inability to pay rent. Don't wait until the rent is overdue for several weeks or months before reaching out. Instead, send a friendly reminder, call them, or schedule a meeting to discuss their situation and your expectations. By communicating early and often, you can show your tenants that you care about them and their well-being, and that you are willing to work with them to find a solution.

2 Understand their situation

The next step is to understand your tenants' situation and the reasons why they can't pay rent. Listen to their story and ask questions to clarify their circumstances. Are they facing a temporary or permanent setback? Do they have any income or savings? Do they have any other expenses or debts? Do they have any support from family or friends? By understanding their situation, you can empathize with their difficulties and assess their ability to pay rent in the future.

3 Offer options and solutions

The third step is to offer your tenants some options and solutions that can help them pay rent or reduce their financial burden. Depending on your lease agreement, your state laws, and your own preferences, you may consider negotiating a partial or deferred payment plan, waiving or reducing late fees, allowing tenants to use their security deposit, offering discounts or incentives for paying rent on time, suggesting tenants apply for rental assistance programs, or encouraging them to find a roommate or move to a smaller unit.

4 Document everything

The fourth step is to document everything that you discuss and agree with your tenants who can't pay rent. This includes any verbal or written communication, any payment plan or modification of your lease agreement, any receipts or records of payments, and any notices or warnings that you send or receive. By documenting everything, you can protect yourself from any disputes, misunderstandings, or legal issues that may arise later. You can also use the documentation as evidence of your good faith and reasonable efforts to work with your tenants and avoid eviction.

5 Follow up and enforce

The fifth step is to follow up and enforce your agreement with your tenants who can't pay rent. This means that you need to monitor their payments, remind them of their obligations, and acknowledge their progress. You also need to enforce your agreement by taking appropriate action if your tenants fail to comply with the payment plan or the lease terms. This may include sending them a notice to pay or quit, filing an eviction lawsuit, or hiring a collection agency. However, before you take any legal action, make sure that you follow the eviction laws and procedures in your state and local area, and consult with a lawyer if needed.

6 Be professional and compassionate

The sixth and final step is to be professional and compassionate when you talk to tenants who can't pay rent. Remember that your tenants are human beings who may be going through a hard time, and that you are not their enemy or their friend, but their landlord and business partner. Treat them with respect and dignity, but also maintain your authority and boundaries. Be clear and firm about your expectations and requirements, but also be flexible and understanding of their situation. Be honest and realistic about your options and solutions, but also be supportive and helpful of their efforts. By being professional and compassionate, you can build trust and rapport with your tenants, and increase the chances of resolving the issue peacefully and successfully.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?