For all the landlords out there … What do you do when your tenants stop paying rent and they go dark?
They ghost you.
They don’t return calls.
And they have rent past due.
How do you get their attention?
Sometimes a phone call isn’t enough.
This is a simple and important tool to have in your arsenal as a rental property owner, and it’s something I’ve used for years: a YOU ARE LATE notice, tacked to the front door.
Why Would a Tenant Ghost You?
It may sound odd, but it’s happened to me — and many other landlords — before.
There’s several reasons why a tenant would ghost you, including:
The tenant loses their job.
If a tenant loses his or her job, they may not be able to pay rent.
The tenant may be looking for a new job — hoping to find one quickly — and doesn’t want to alert you as the landlord in fear of alarming you.
On the other hand, the tenant may not be looking at all — and simply doesn’t want to accept the prospect of moving out.
The tenant forgets about rent.
Sounds a bit crazy, right?
But I’ve seen this before. For whatever reasons, from personal to professional, a tenant may simply forget about paying rent.
The tenant is actually a squatter.
Depending upon the state you live in, a squatter — a person who unlawfully occupies a building — can actually lay claim to a property if they live in it for a specified amount of time.
While this is an extreme case, it is still prevalent … and something to be aware of.
A Note To All Frustrated and Stressed Landlords…
Not only can a tenant ghosting you hurt your monthly bottom line … it can also lead to frustration, stress, and collective burnout as a landlord.
Here’s the good news …
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Or, if you’re really burned out — you don’t want to mess with physical property at all — but you’re still looking for income from real estate investing, you can buy tax liens and receive the interest payments and late fees paid by the homeowner. Learn more about this “Government Backed Tax Yields” passive real estate investing strategy.
What’s the best way to be pro-active and prevent frustration and stress, as well as a tenant ghosting you?
Finding quality tenants.
How to Find Quality Tenants
The truth is, you only want to use this simple yet important YOU ARE LATE notice if you have to — as a severe warning.
No landlord wants to be hunting down their tenants for rent … so how can you avoid the process completely?
By finding the best possible tenants today.
Here’s how you can do just that.
How to Vet Your Tenants Thoroughly
By doing your homework on tenants applying to your rental property, you can get a more clear picture if a certain tenant is right for you.
Pull the person’s credit score.
Because a credit score is a past and present look at your ability to pay back a loan — as well as a future indication — it’s a critical aspect to know about a potential tenant.
Anything 670 and above falls in the good category, and anything above 720 is considered excellent. For reference, an 850 is a perfect score.
Determine if they have any prior evictions.
If a potential tenant has had a prior eviction, it’s a red flag and you may be better off both short and long term finding a different tenant for your property.
Run a background check to ensure the person has no criminal records.
Similar to prior evictions, if a potential tenant has a criminal record, he or she will likely not be a good fit for your property.
Ask for Proof of Income.
Ask for a pay stub for proof that the potential tenant has a consistent income.
As a landlord, you don’t want to go off of potential jobs that the person is applying for; you want to see specific proof of present income so that the tenant won’t have difficulty paying you in the future.
It’s also important to keep in mind the amount of income the potential tenant makes per month, because you want to make sure he or she can afford your rent.
In the event that the tenant’s paystub is nearly as much as the rent, a job loss or car accident can lead to financial difficulties, as well as that person not being able to pay rent in the near future … and potentially ghosting you.
Ask for References.
References are critical to finding the right tenant. You can go about references one of two ways:
- Previous landlord references. This can give you a strong indication of the tenant’s ability to pay on time, personality and more.
- References from coworkers. A professional reference can give you insight into a potential tenant’s work habits and motivations.
Tenant Screening Software
While you can screen tenants manually, it can become time consuming, especially if you have many people applying. That’s where tenant screen software comes in.
Websites such as MySmartMove, the American Apartment Owners Association Tenant Screening and TurboTenant offer tools such as:
- Credit Reports
- Criminal Records
- Eviction Records
- Income verification
- Previous address history
- And more
Create a Solid Lease Agreement
What can also save you from having to hunt down a tenant for rent is to create a solid lease agreement. Leave nothing up to common sense — everything must be spelled out, including contingencies.
A well-written lease agreement will have the following elements:
- security deposits
- costs if damages to the property
- cost of rent
- how the rent will be paid
- rent due dates
- penalties for late rent
- and more
The YOU ARE LATE Notice
Look, if you vet your tenants, most of the time you’ll have people who pay on time and will give you a heads up if something like a job loss occurs.
But once in a while, you get a bad apple that you didn’t see coming.
A few months in, they pay late, then they pay even later … and then they go completely dark.
How do you get their attention?
This tacked right to the front door:
YOU ARE LATE !
Your rent for January 2023 has not been paid! If we have not received your rent payment in full (INCLUDING LATE CHARGE) by January 11th, 2024, we will begin immediate eviction proceedings!
Remit your rent + late fee immediately to:
Oaks Management Group, LLC
Suite 671
1910 Madison Ave.
Memphis, TN 38104-2620
Or contact our Property Manager:
Johnpaul Moses, (901) 756-0000
- If received by 1/5/24, amount due is: $640.00 + $25.00 = $665.00
- For each day after the 5th, add $5.00 for each additional day (see lease).
- All payments received are applied first to late charges, then to rent owed.
Now it’s your turn!
Swipe & Deploy this helpful doc now.
The Bottom Line: Don’t Let a Tenant Ghost You
The last thing you as a landlord want is your tenant ghosting you.
That’s why it’s critical to be proactive by vetting tenants, running background checks, asking for references, and creating a solid lease agreement.
But, in the event that your tenant becomes a bad apple, this YOU ARE LATE notice will get their attention.
Even if you haven’t had a bad apple tenant before, download this swipe and deploy file to have just in case.
Having it in your back pocket can give you peace of mind — and resolve a future issue with a tenant.
