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One way to get action from late paying tenants

August 21, 2011

I read this in a book and thought it was comical. The book is titled ,”What No One Ever Tells You About Investing in Real Estate” by Robert J. Hill.  The following is from pages 26 and 27 of his book:

It’s not surprising that, over four decades of property management and investing, Hal Wilson has had to evict a few tenants for not paying rent.  He has been to court on too many actions, and like many investors, has decided that he doesn’t really like them.  So Hal has  developed an alternative method for getting tenants to pay up or suffer “eviction”.  Here’s how he does it.

When one of his tenants stops making rent payments, Hal, like most investors usually just contacts them and asks them to pay. If hears a valid excuse, he shows patience and helpfulness.  If he hears an invalid excuse then he clearly reminds them that they have to pay their rent in a timely manner.  Otherwise, he explains, they will have an eviction on their record and they may have trouble renting from other landlords in the future. If the naïve tenants fail to heed his warning or if experienced tenants just don’t pay, Hal employs his own creative remedy.  In broad daylight, he drives over to the property and sticks one of his For Rent signs in the front yard.

As soon as the tenants spot his For Rent sign in “their” yard, they call Hal and say something like, “What’s with the sign in my yard?”  Hal then tells them he assumed they were moving.  Their usual response is, “No, were not moving.” In answer to that, he usually says, “So let me get this straight.  You’re not moving, and you’re not paying rent? That doesn’t go hand in hand. If you stay, you pay rent.  If you don’t pay rent, you move.  When you move, I rent the place to somebody else. And that’s exactly what I’m doing.”

Sometimes after Hal declares this as gospel truth, they say in a huff, “Well, then I’m moving!” and Hal replies, “Good that saves me a lot of trouble.” Usually, though, the tenants quickly pay the rent. As Hal has found this one action really grabs the attention of his tenants and gets the results he wants—without wasting a lot of words.”

I find this amusing, but I don’t think the tenants would leave without kicking some holes in the sheetrock. Not even sure this is legal..but still funny.

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From → Landlord

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