Hearing this news can give you a jolt, but your reaction most likely will consist of one of three options:
You know that you are not going to go soft and let the tenant take advantage of your ‘good nature’ (bad business decision), and you do not want to evict the tenant (cost of eviction, vacancy, cost of obtaining a new tenant). So, plan before the event happens!
Be proactive, this means being reactive ahead of time. In doing so, you can manage and guide your decision making ahead of time. This ‘standard’ will overcome an emotional reaction that might lead to a bad decision. Remember, as landlords, our bad decisions have long-term consequences.
The following are facts that you should use to establish your “I can’t pay the rent” criteria:
Should you treat everybody the same?
No, thank goodness. You can treat people differently, within reason. For example, come down much harder on a tenant who has performed badly in the past, or who has a history of late payments.