Deadbeats and what to do with them. *UPDATED*

So it's the start of a new month and what is usually a happy day for me: Rent day. I'm a home-owner and I rent out rooms in my place to University students as I'm near Carleton and it works out great for them. As I'm busy collecting my fees I have one of them drop this on me: "Yeah my mom is out of work and she says this is going to be my last month."

I talk with the mother as clearly this is violating the lease and I require *at least* 60 days notice before moving out early. His lease is until August and obviously you can't find renters in the middle of a lease-term, at least not the kind I'd like to share my home with.

I tell this to the mother and she basically says "sorry, I don't have any money and I can't pay you." So I now have just enough to make mortgage, and will likely have to sell off some gaming gear to make payments this month. I've had deadbeats before but I always had a backup to fill the room and it was a planned departure. Can some helpful goodjer perhaps tell me what my options are?

did he sign a lease? Is it a legalally binding document? Can you hold his crap till he pays you what he owes you? Although don't take my advice, I'm a computer guy, not a lawyer.

Hmm, if it's a lease and legally binding you have a case. Inquire about that. Also, has anyone else noticed that the word "deadbeat" also says what you should do to them "beat dead"?

Rainsmercy wrote:

did he sign a lease? Is it a legalally binding document? Can you hold his crap till he pays you what he owes you? Although don't take my advice, I'm a computer guy, not a lawyer.

Rainsmercy going with the patented "Doctor McCoy" defense.

He's dead Jim, you grab his phaser, I'll grab his wallet.....

To be fair, it's not really the guy's fault that his mother lost her job and can't pay for his rent. I wouldn't call either of them deadbeats necessarily - it's hard enough going through college, but harder to have a job at the same time. And it's not like they could've predicted that she would've lost her job.

All I can say is that you should encourage the guy to get a job on the campus he attends so he can pay the rent himself. It'd make things harder for him, but it would hopefully avoid any nasty lawsuits. These days, the courts are so full of frivolous cases that it would take probably at least a year or two to even get to court, let alone settle anything - and by that time, both parties would be drained by legal fees and everybody would be the worse for wear.

In cases like these it is standard operating procedure for the deadbeat to become your butler.

Indentured servitude for the win.

Danjo Olivaw wrote:

In cases like these it is standard operating procedure for the deadbeat to become your butler

I think that is in cases of car accidents only though.

Shoot zem. Shoot zem both.

IMAGE(http://i2.photobucket.com/albums/y16/protoleo/toht.jpg)

If only Awkward.... If only.

So it turns out today exactly NONE of my tenants paid rent. So now I have no money for mortgage, I got about 2 hours of sleep as Nin was busy pacing and filling her anger hump (she's a bit of an anger camel that way). The lease is indeed a legally binding document, however due to the reasons posted by dhelor that's really not the route I want to take. I'm going to sit down with him tonight
and try to work something out.

Its stories like this that remind me why I never go into investment real estate.

I always knew that kid was trouble!!! What with the never going to class, and his mother paying his rent, and the infected nipples. You should purple nurple him until he agrees to work more hours at McDonalds and pay what he owes!!!!

Tell Nin to calm down. I will call her tonight and talk her down from her anger high before she esplodes and you are covers with Deninne inerds.

Debtors prison.

Oh Z you are so right. Curse him and his infected nipples!

I'm running on about 2 hours of sleep today. Think I'll crash and burn around noon... :/

You should just gorge yourself on free food at work man. Take advantage of that situation. Maybe smuggle some home. That should save you some money.

Sorry to hear. Fortunately (well, for me, at least) I never had anyone skip rent, so I don't really know what to do with that. Late payments, yes, but no one ever bailed. How soon is the mortgage due?

How soon is the mortgage due?

The first (or next business day).

Why oh why does mortgage come out on the dame day I get rent?

...So no less than 3 co-workers have offered to float me until the deadbeats pay. I'm conflicted about accepting this charity but it's heartening to know that they'll do it for me. Perhaps the bank will delay my account rapeage for long enough for the money to be transferred.

Stylez wrote:

...So no less than 3 co-workers have offered to float me until the deadbeats pay. I'm conflicted about accepting this charity but it's heartening to know that they'll do it for me.

Good to hear. That's what you get for being a good person.

Now here's my advice-- take their money, say thanks, and don't stop driving south until you hit Mexico.

dhelor wrote:

To be fair, it's not really the guy's fault that his mother lost her job and can't pay for his rent.

That is true, and fair. However, that's not Stylez's problem.

Stylez, these guys may be in this or that hard situation, but there are two facts you need to focus on.
1) To rent rooms, you must be heartless and not put up with any of this BS.
2) They gave you their word, and you gave YOUR word based on your trust of that. They've come on hard times, yeah, that happens to everyone, but they've also betrayed your trust and now you're in a bad position because of it.

You're going to end up homeless and with ruined credit if you put yourself on the line to help these guys with their hardships. It isn't your problem, Stylez, and you're going to need to be a bastard about it, even if that means threatening and pursuing legal action. This is PRECISELY the reason you have them sign a lease.

Also, if any of them intend to stay with you, you might consider kicking them out. If they've defaulted on their lease once, there's nothing saying they won't do it again.

Good luck, Stylez. This must absolutely suck. I have absolutely no sympathy for your tenant, and at the very least, when his lease is up, you should refuse to let him renew, even if he finds the money to make rent 'til August. Although it sounds like he's leaving anyway. But still: Anyone who doesn't live in a dorm, doesn't have a job and makes his mother pay his rent is someone whose money troubles should inspire very little sympathy. At least you know what screening questions to ask your next tenant.

I don't know if renters in an area ever discuss the finer points of renting amongst themselves, but is there any local housing organization or forum where you could warn your fellow renters about this deadbeat?

At least your co-workers are decent people. Again, good luck.

ETA: What Lobster said. 100%.

What Lobster speaks is the truth. I've been far too lenient on them (the curse of owning a home from before I was mature enough to handle the responsibility). I'm going to get this sorted out tonight and we'll see how that goes.

Now here's my advice-- take their money, say thanks, and don't stop driving south until you hit Mexico.

Tempting, but from what I hear crossing the border into the US these days is an adventure in itself, I don't think I'd make it to Mexico!

No first and last month as a deposit? Isn't that SOP for landlording especially if yours is the house that is on the line?

Stylez, I'm a landlord as well, although I do not rent out the house I live in. Renting to college students is the one of the most risky groups to rent to. Ouch.

Here is the bad news...If they didn't sign a lease, they don't have to pay you anything...ever. However, if you kick them out, you will have no hopes of collecting any rent until next term.
The good news is...you can legally put their stuff on the street TODAY, where if they had signed the lease, you could not do this. If fact, they could stay there for months without you being able to legally kick them out, and don't even get me started on 'taking them to court'. It's barely worth your time.

I won't ask you why you bought a house that depended on the payments of renters to fulfill it, but your best course of action is to sit them down one at a time, and discuss your issue (mortgage) like adults. Keep them as tenants, unless they are disruptive, and work out how they are going to pay you. Allow no video game playing....but have them get a job. As an alternative, you can have them 'work off part of the payment'....and have it written and signed agreement. For instance, if you need the grass mowed, or any landscaping stuff to do...exchange rent for work. Hell, you could have one of them be your maid, another be your landscaper, and another for a chef. Good luck.

EDIT: Oh, and you might want to your house on the market (ASAP - Spring sales = higher return), if you cannot afford to stay in the home. It's better to sell your house, than have the bank sell it for you. Not to mention the extreme damage that would do to your credit.

Thanks Wing.

They have indeed signed a lease which leaves me perplexed as to why the mother thinks she can back out at any points (first and last was paid, but the last month of the lease is August, not "whenever they damn well feel like it". ) I know that money *should* be still in the account for situations such as this, unfortunately situations such as this have arised before and that float change has since been exhausted. I like Wing's idea of allowing them to work off their debt, but I think to start I'm going to sit him down and let him know the lease is in his name, not his mother's, and he's old enough now to take responsibility for it.

Also, you've probably a decent relationship with them, so you can't be too harsh...just say something like, "Sorry bro, you've got to clear out of the room, so I can prepare it for another renter...else I'll be forced to foreclose and become a street dweller myself....Dude, I'm sorry, but I don't have a choice. Can you be out by __?"

Oh, and put a 'For Rent' sign in your front yard ASAP....to let your existing tenants know that you mean bidness.

I don't know if renters in an area ever discuss the finer points of renting amongst themselves, but is there any local housing organization or forum where you could warn your fellow renters about this deadbeat?

Oh they do, and I get calls from other landlords all the time asking about old tenants looking to move in to a new place. There will be no referrals from this bitter old young man.

A primer on how to deal with folks who owe you money.

Here is the bad news...If they didn't sign a lease, they don't have to pay you anything...ever. However, if you kick them out, you will have no hopes of collecting any rent until next term.
The good news is...you can legally put their stuff on the street TODAY, where if they had signed the lease, you could not do this. If fact, they could stay there for months without you being able to legally kick them out, and don't even get me started on 'taking them to court'. It's barely worth your time.

DO NOT DO THIS YET. You are in Canadia, Wing is in Virginia. The laws may be entirely different and what is legal in Virginia may not be legal where you are, and could land you in trouble. Call your local city government/municipality government authority or check their website or find another landlord in your neighborhood and see what you are allowed to do.

General observations:

1. Yes, if renter doesn't pay, you have a legal right of action against him. Actually getting money out of him or his mother, however, could very well prove impossible. i.e. if mother is telling her son's landlord she can't pay, she's telling a lot of other people as well.
2. If he doesn't pay, probably your only legal recourse is to evict. This can be simple or complicated depending on where you live. If you don't think he's the type to go to court or smash your windows, it might be easier (but riskier) to follow the Wing strategy of throwing his stuff out to the curb.
3. Sorry to hear about this, it sounds like a pain in the butt.

The idea to let the deadbeat work his debt off is excellent. Can you work out an agreement that will allow you to pimp him out as a male escort with the proceeds going towards the rent balance? Basically, add a "Delinquencies and My Beotches" rider clause to the "House of Stylez" rulebook?