Rental Property Topics: What to Do When the Tenant Does Not Pay

Buying real estate is one of the most popular forms of investing. While some may buy houses to remodel and flip them in the short-term, many others prefer to think of real-estate as an investment that should be held for the long term. And while the market can go up and down, it is an undeniable truth that in virtually every area people will need a place to live.

Whether you have purchased one property or numerous homes or commercial buildings to act as rental income, there are several steps to seeing a return on your investment. The structure must be up to code and sound for living or conducting business—not to mention enticing enough to attract a tenant. There must be a thorough, legally enforceable lease signed, and after that, the tenant must follow through on their promises to keep the property as they found it and pay their rent.

In consulting with a skilled real estate attorney, you should feel confident in knowing that you have a strong lease to fall back on—along with the peace of mind that comes with vetting a good tenant. While such relationships have the potential to be very successful and last for years—even decades—other leases may seem tenuous at best. Issues such as noise levels, unauthorized pets, and property damage are common matters of contention between landlords and tenants, but financial issues are by far the biggest problems. Depending on your patience level, one or two late pays may not have you worried and having a discussion with the tenant about timing may solve the problem; however, once a tenant is obviously struggling to make the rent or has completely stopped paying, you may be forced to take more aggressive legal action.

In California, there are specific steps you must take once rent has not been paid—and most likely, you are considering the possibility of eviction. Speaking with the tenant to figure out what is going on is always the best course of action. If you make no progress there, the next step is to serve the tenant with a Three-Day Notice to Pay Rent or Quit. The details of the notice should include the date served, the tenant’s name and address, amount owed to stave off eviction, and exactly where the payment should go. If they pay, you should be back in good shape until the next month—and if they move out, it is time to find a new tenant.

If the Three-Day Notice has no effect, however, you can then move on to filing an eviction lawsuit—or as it is commonly known in California, the unlawful detainer lawsuit. The process becomes more formal at this point as you must have a summons and complaint served on the tenant. If the judge decides in your favor at the hearing, you are given a writ of possession—which is then given to the sheriff to complete the eviction. While evictions can be unpleasant all around and no one enjoys going through such a process, it is often the unfortunate cost of doing business in real estate. If you follow all the proper legal channels, you should have your rental property back in short order.

If you find yourself in the middle of a landlord/tenant dispute, consult with an experienced attorney like Shane Coons right away to protect your property, whether the dispute involves residential or commercial real estate. Call now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com. We will be glad to meet with you to review your case and explain your legal options. Our office is here to help!

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Rental Property Topics: What to Do When the Tenant Does Not Pay

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