Repayment Plan for Overdue Rent

rmason

How many offer some form of repayment plan for overdue rent to avoid taking the tenant to auction?  With the continuing COVID problems we have more and more tenants experiencing financial problems. Florida’s auction process is a 64-day process from first late notice to the online auction. I start at day 32 when the tenant receives a notice of lien.  Although we're only 50-50 for positive responses, it does saves time and avoids some auctions.  The plan is only offered once, repeat offenders continue down the auction path.

BusyProperties

We offer a repayment plan per their finances the first time around. If they come around the auction list a second time I ask for 75% up front then repayment on the balance. IF it comes up a 3rd time, no repayment plans are offered up. Balance in full or they lose it. I have been trying to explain to a few that smaller payments per week are easier than bigger payments once a month. Some have gone that route, others have not.  

ESS

The only plan we offer for our auction tenants is pay 75% and vacate. 

BusyProperties

@ESS I love that idea!! Do you have a form they sign off on or no?

ESS

BusyProperties said:

@ESS I love that idea!! Do you have a form they sign off on or no?

I have a "Partial Payment Agreement" form I use and it states they have until X date to vacate or anything left in the unit becomes our property. It also outlines what date and amount is to be paid on that date.

GSI03

We try very hard to have to auction anyone.  We do a partial payment plan, and if someone just can't pay it all we do a very generous pay to vacate.  We don't want the legal liability of auctioning if we can possibly avoid it

BusyProperties

@ESS with using the partial payment agreement, have you had any issues with people taking what they want and leaving the rest. I have had quite a few in the last couple of months that called in stating that they have moved out and when we go to "clear" the unit, they took what they wanted and left the rest for us to dispose of  

MamaDuke7

BusyProperties said:

@ESS with using the partial payment agreement, have you had any issues with people taking what they want and leaving the rest. I have had quite a few in the last couple of months that called in stating that they have moved out and when we go to "clear" the unit, they took what they wanted and left the rest for us to dispose of  

When this happens, I let them know the unit is their responsibility until it's empty and ready for me to rent.  I tell them they'll go to auction and then collections for the balance.  (I don't do collections, but they don't need to know that!)  That usually gets them in to finish moving out.

Shelley

I do a 50% pay to vacate as an alternative to auctions, with a 48 - 72 hour time frame from payment to have the unit completely cleaned out, if the unit is not cleaned completely out I will send the remaining balance to collections. So far it has worked out well for us and I have not had anyone leave their unit full of trash.  

ESS

@BusyProperties Thankfully I've only had one tenant do that! I just threw the stuff away

i43storage

Everyone of my possible auctions is different based on what I think the tenant's current life situation is.  I try my best not to auction off anyone's belongings.  If they are in constant contact with me and making some kind of payment, I will not auction them; however, I do encourage them to find a place to move their stuff.  I don't like renting to people who simply cannot afford to.   

LADYLIFT1

RMASON 
Whats your procedure in Fl for an auction?