The decision to evict a tenant should not be based on emotions. You need to implement a process and then execute it. This process can save you a lot of money.
As an owner of rental properties you will always have to deal with tenants who are not paying their rents. There are a lot of reasons why people don’t pay their rents and I have heard most of them. Sure some are legitimate and a lot are made up. Either way, I am running a business and I have to make my mortgage payments so I expect my tenants to pay their rents in full and on time.
When people ask me if I can wait for awhile for them to pay their rent, I ask them to call my bank manager to find out if they can wait for my mortgage payment. Another “tact” I use is to ask them to find someone to lend them the money to pay their rent. Usually, I get a response something like “Oh, I can’t ask to borrow money”. My response is, “then why are you asking to borrow money from me”, which is essentially what they are doing.
Usually, the excuses get better and better as the month goes on, and can sometimes run into a second month. How you deal with this will depend on your landlord tenant laws in the area that you own your rental properties. In one location, where I own a lot of my rentals, I am able to start an eviction process right away. By starting the eviction process right away, I help reduce my costs. I can usually evict someone within 30 days of the first notice. I then use their initial deposit or their last month’s rent to offset the lost rent. I start advertising right away and can usually have the tenant replaced with very minimal costs. I used to listen to the tenant’s excuses and try and empathize with them but it only cost me lots of money in then end.
The other thing about starting the eviction process right away is that it shows the tenant that you mean business. They usually end up finding a way to pay their rent. This simple process has saved us thousands of dollars is rent collections, vacancies and re-renting costs.
So, when should you start the eviction process? As soon as your laws allow.