Rent Late Dont Jump to Conclusions – Mortgage
Rent Late Dont Jump to Conclusions
Dan The Roommate Man
As a landlord, you are financially dependent on your tenants. When a tenant fails to turn in their rent payment on time, you have to worry about making your own mortgage, rent and utility payments. Being put in this situation is frustrating and sometimes angering, but before you take legal action, evaluate the situation. Perhaps your tenant is going through some hard times. Dont want to jump to conclusions, offend the tenant and then needlessly lose their tenancy. Its important that you understand why the rent is late.
Imagine this scenario: Youve been trying to contact your tenant for a week. Youve gone to the apartment at all times of the day, phoned, left notes on the door, and still have heard nothing back. You decide your tenant is a loser. You want his rent payment or you want him out! At the end of the week, you finally find your tenant at the mail boxes, and you angrily approach him. Frustrated and tired, you confront him about the situation, and rashly demand that he pay the overdue rent. Then he starts to cry. Through tears, he apologizes to you... says he hadnt even thought about it being rent week. It turns out his father just passed away and he was out of town for a funeral.
DO NOT let this happen to you. You will need to meet with the tenant to discuss the situation, but if you are having trouble contacting him or her, try not to become angry. True, not getting a rent payment can be frustrating, and it sometimes may cause you to evict the tenant... but before you take legal action, you need to evaluate the situation.
More than likely, the tenant will have a valid reason for not turning in the rent payment. Nevertheless, you still need your money. To take care of the late payment, youll need to meet with your tenant. You wont be able to solve any problems if you dont open the lines of communication. Some possible reasons for a late payment include:
Your tenant is withholding rent because the unit is unsafe/needs repairs. If this is the case, you probably already know about the situation and need to make the repairs. If the tenant has notified you of the problem and provided you with written requests expecting repairs be made within a reasonable amount of time, they have the right to withhold rent until the repairs are made. However, if this is the first youve heard of the needed repairs, you may find it necessary to take your tenant to small claims court. Before you take them to court, however, talk the situation over with them. See if the two of you can reach an agreement. Then, get this agreement in writing.
The payment was lost in the mail. Believe it or not, this really does happen. Not often, mind you, but sometimes. If the payment was a check, get them to cancel the check through the bank and write another one for you.
The tenant lost his or her job or cant work because of an illness. Unfortunately, this happens. If this is the problem with your tenant, find out what their plan is. If they are a good tenant, and you have faith that they will be able to come up with the money, you might want to give them an extension. The tenant may be able to get the money from a friend or family member. However, if you are unable to provide them with an extension, you may need to give them a notice to vacate, but not less than the time allowed in your community.
The tenant forgot. Hey, it happens. If youre lucky, this is the case and you can get your payment on the spot and go home happy. or...
The tenant is a deadbeat, doesnt feel like paying, and tells you so. If this is so, you will definitely need to start the eviction process.... but dont assume your tenant is a deadbeat until you know for sure!
The bottom line: Most tenants will make a good faith effort to pay their rent. If the rent is unpaid, the first step is to listen to tenants and then work with them to arrange full payment.
About The Author
Since 1989 Dan The Roommate Man has helpe 1000s people find roommates. Need help Contact him at 800-487-8050 or www.roommateexpress.com
info@roommateexpress.com
Reducing Debt Before Its Too Late … How to avoid the pitfalls of creeping debt. – Debt Consolidation
Reducing Debt Before Its Too Late ... How to avoid the pitfalls of creeping debt.
Debs Seeber
Reducing debt usually isnt a high priority for people until they have already gotten into trouble with overspending. Using a few basic guidelines, and debt calculations, can help you see when your debt load is getting into the danger zone.
Budgeting Guidelines
Creditors use budgeting guidelines when reviewing and approving credit. If your debt exceeds the financial communities recommended guidelines, then you have a higher risk of credit applications being denied.
Getting, and keeping, your debt in line with recommended budgeting guidelines, is an important step in debt reduction.
Use the following recommended budgeting guidelines the same ones used by Financial Institutions to review the items in your budget:
Housing 35% - Mortgage or rent, taxes, repairs, improvements, insurance, and utilities;
Transportation 20% - Monthly payments, gas, oil, repairs, insurance, parking & public transportation;
Debt 15%* - Credit cards, personal loans, student loans & other debt payments;
All other expenses 20% - Food, insurance, prescriptions, doctor & dentist bills, clothing & personal;
Investments & Savings 10% - Stocks, bonds, cash reserves, retirement, rental real estate, art, etc.
Debt Income Ratios
The second step is calculating your debt income ratio. Once you know what your ratio is, you will understand just how important debt load is to your overall financial picture. Your debt income ratio is the percent of your monthly take-home pay that goes to paying debts.
You calculate it by taking the amount needed to repay debts each month, including rent or mortgage, and divide by your take-home pay your net pay after taxes. Remember, this is "Debt" ratio, so only include actual debt repayment in the calculation.
Credit To Debt Ratio
Just because you pay off a credit card is no reason to close your account. One little known fact about the Credit to Debt Ratio is the reverse effect it has on your credit score. If you pay off a credit card, and close the account, you are actually negatively impacting your credit score.
The reason for this negative effect is in the calculation of the Credit to Debt Ratio itself. This ratio is the relationship of your debt total vs. your credit limit.
You calculate it by dividing the total credit limit of all credit cards and loan accounts by the total of the actual debt spent total. Now, if you pay off a credit card, you are reducing the actual debt, which is great, but, if you close the account, you are also dramatically reducing the credit limit you have, and usually by a higher percentage than the debt reduction.
Pay Yourself First
Essential to long-term financial success, and protecting your future, is paying yourself first. While this may seem easy to do, it happens to be the last thing most people do, instead of first. Debts and other financial obligations, money for entertainment, and other spending always seem to take a higher priority. All I can say is, STOP! Think about it, if you arent worth being paid first, then who is Always put something away in your savings, and leave it alone. It doesnt matter if its only $5 a week, just do it!
Snowball The Credit Cards
Last, but not least, is making extra payments, not just the minimum payments, on your credit cards. You have probably already seen this many times, but it just cant be stressed enough. Paying just $10 extra a month on a credit card, above the minimum required payment, can cut your repayment term in half, if not more! So, squeeze out that extra payment, however small, every month, and take advantage of the compounding effect of snowballing your debt away.
The Power of Financial Knowledge
Remember, you dont have to be a financial whiz to understand whats going on with your credit and debt. Just a few simple calculations, and an eye on the future, will go a long way to help you succeed financially and keep your debt under control. Be safe, be smart, do the math!
Related articles:
Compare the pros and cons of debt consolidation loans, service companies, and credit counseling.
http://www.debtsteps.com/consolidate-debts.html
Understanding how your credit score can affect your debt relief choice
http://www.debtsteps.com/credit-score.html
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About The Author
Debs is the editor of www.DebtSteps.com where you can get the answers you need about debt relief, consolidation, credit counseling and more. Free subscrption and money management worksheets http://www.debtsteps.com/debt-help.html