Rich Dad Education Blog

Rich Guide Answers

Question: The economy is tough and even previously reliable tenants are now having trouble paying the rent on time. How should a landlord deal with it?

Answer: These are difficult times. While you want to be compassionate, you still need to operate your real estate investments with good business practices. Continue to enforce all of the terms of your leases, including late fees and other collection policies.

If you have multiple properties or multi-unit buildings, one option that may work is to move a tenant who has hit hard times to a lower-cost unit. If the tenant is still able to pay every month but not on the same date, consider revising your rental agreement to change the due date. Have your attorney review the new agreement before you sign it.

A reality in this business is that sooner or later you will likely have to evict a tenant for nonpayment of rent. It's not pleasant, but it comes with the territory when you own rental properties.

Every landlord should have a copy of their state's landlord/tenant handbook. You can find it online; just search on "landlord/tenant handbook" and your state. You should also know how to file an eviction or have an attorney on your Power Team who can handle it for you.

Rich Guides answer questions from students about real estate investing and give them support and guidance as they develop their investing skills and knowledge. Rich Guides are available to take your calls at 800-978-8068, option 3, from 8:30 a.m. to 9:00 p.m. Monday through Thursday; 8:30 a.m. to 7:00 p.m. Friday; 10:00 a.m. to 1:00 p.m. Saturday (all times Eastern).