I have a tenant that has been furloughed because of the government shutdown. She is on a bi-weekly payment plan and her next rent payment is due 10/11. She has been there 15 months with no problems.

I haven't heard from her yet about not being able to pay on the 11th but expect to by tomorrow. How would handle this situation?

I would begin eviction proceedings as soon as rent is late. I am sure they will pay though, as they should have an emergency fund to pull from

It's up to you, but the pertinent questions I'd consider are as follows:

If she had worked for a civilian employer and was furloughed, fired, laid off or the business closed its doors, would you still expect rent to be paid? If yes, why is being a federal worker any different?

If she goes into other businesses and tries to utilize the goods and services they provide, will they allow her not to pay? If they demand payment, why don't you?

It really boils down to a question of being prepared. None of us are guaranteed that the job and income we have today will be there tomorrow, so the wise person sets aside savings to cover life's little hiccups. Call it an emergency fund, a rainy day fund, grandma's cash tucked under the mattress, whatever...

The foolish and their money are soon parted. Truer now than ever.

She should have friends, family, church, community organization or someone else who can float her a loan if she's trustworthy. You are not her bank. If she doesn't have access to any of these resources, that says volumes about your tenant's (lack of) character that they have no relationships built on trust.

So I'd do what I normally do. If not paid today, tomorrow I would text "Rent?" If no response by the 4th, I'd make 1 courtesy phone call and leave a message saying "rent is not paid and I need to hear from you in the next 24 hours to avoid any potential issues." If no response by the 7th, I'd file eviction. Modify as needed if your state requires a "Pay or Quit" on the front door or some other type of notice.

Agree 100% with Sid.

If you've lived beyond your means, whose fault is that?

I hate to say it, but I don't fully agree with Sid.

This furloughed employee will soon be back to work and will be given back pay for all the furloughed days. It is not like a civilian situation, where the money is gone -- this is just a situation where the paycheck is being delivered late, through no fault of the tenant.

Yes, the tenant should have some savings, a nest egg and cushion. But the tenant will be getting all of the back pay, so I would "work with" the tenant.

I had an IRS employee/tenant thru the last shutdown. It was a PAID VACATION ... she slipped a couple weeks then caught-up in one lump sum when the vacation pay landed.

For markets like mine that take 6-8 months to remove a tenant, I would/will work with the tenant. What are the judges response to a tenant that has been furloughed? in my blue state, "it is ok, make a payment plan with landlord and catch up when the govt is running. "

What is more scarier is local govt not paying section 8. Some folks whole portfolio goes in the trash.

Evict - and enjoy a vacancy lasting till Spring? No, for once I would be working with such a tenant! I've reacted in anger, then I had a long time to repent that foolishness. (It depends on the type of tenant, of course, me assuming this is a top notch tenant who likely will have reserves and not live paycheck to paycheck).

I have one furloughed tenant. I'm leaving him alone. He's a good tenant and I expect he will get his back pay before I could boot him and find a replacement.

Who will rent the apartments if we eliminate

all folks on public assistance

military and govt employees

any employee who works for a company with govt contracts

any employee of a company that has been bailed out by the govt

So I am a federal employee in addition to a LL. I will point out that we are talking about a hypothetical situation... the tenant is still current.

As long as the tenant has possession of the property, the landlord is in compliance with the lease (assuming all else is in order). Give the tenant the standard notice and proceed.

There is no guarantee that any federal worker will be paid for the time off, and, coming from a person who works in DC, there is little reason to assume this will be settled quickly.

Moreover, were are three days into the shutdown -- anyone who becomes destitute in that time, considering that most of the federal workers were just paid, is a tenant not worth keeping.

Give the standard notice, and work with the tenant to secure alternative funding but move on at the same time. It's not the landlord's fault the tenant is in the situation s/he is in, and the landlord is not a social-housing provider.

We all know there are *** many *** other sources of income and support for times like these (including many government programs) -- don't take on that burden yourself.

I've been through these sorts of situations many times -- and ever time I bent my own rules, the loser was always me. ALWAYS.

Be sure to be exceptionally careful about accepting any form of partial payment and do not waive any late charges.

Beth, Great question!

My advice is to stick to the lease. You can always delay eviction at your own choice.

Send proper late notices on schedule. Do NOT let extra days pass or slack off.

Keep the proper business and legal wheels turning

because...

You have no guarantee on how this will turn out.

Too many times we have been patient with residents who with overdue rent, with the promise of insurance checks, tax refunds, money from parents, etc only to have them use that lump of cash for a new car or deposit on another house, leaving us high and dry.

If things go sour you will not lose time.

If you choose you can be flexible and work with them.

Yes, just like any other resident with temporary jobs problems we would work with them. "Work with" does not mean to sit idly by. It means THEY are actively doing everything they can and communicating with us.

Part time jobs, borrow, parents, unemployment, etc.

Big lesson for us all:

- save an emergency fund

This is not a matter of a delinquent tenant. And there are some legal complexities.

1- You may not be able to evict a furloughed tenant for missing one rent payment due to some statutory protections for them.

2- In Virginia it takes 6 weeks to evict, (ok give the required notices if you feel you must. But in this economy how long will you have a vacancy?

3- Again, this is an unusual situation if you do not have a contingency reserve top cover a missing rent payment you do not belong in this business.

4- If you need every penny of rent to keep your rental property afloat you do not belong in this business.

5- The Military and Federal and State employees are the best tenants you can have.

My opinion is give them some space, let them know about your concerns then let them be. They have other expenses as well. 17 years ago when this happened, a law was passed prohibiting interest, late payments ,and evictions of furloughed Fed employees and contractors. I suspect the same will happen this time.

Explore your own asset options. If you do not have emergency reserves, "Shame on you, you do not belong in this business" !

"Some statutory protections"? Would you please elaborate on what they may be?

And, how do you come to the conclusion that it takes six weeks to evict in VA?