Partial Rent Payment - Park City Property Management
Partial rent payments can happen for a few different reasons when it comes to Park City property management. Some of these reasons are backed by Utah property management law and some are not. The hard and fast rule is that a tenant is obligated to pay rent on time and per the terms of the lease. There are however situations when a tenant either may not be able to pay or can legally withhold some or all of the rent. Today I will cover both areas as well as recommendations for a landlord response in each one. As always I am not an attorney and if you need that level of expertise you should contact one who is familiar with property management in Park City, Utah.
Tenant Can't Pay
There may come a time when, for various reasons, a tenant is unable to pay the full amount of rent when it is due. Perhaps they had an expensive car repair or medical bill. I have had tenants be the unfortunate victims of online identity theft and bank account hacking. Job changes or family emergencies or even job loss can also contribute to a tenant not being able to pay the full rent at the time it is due. As a landlord in Park City property management you have a few options. As I mentioned before a tenant in this situation is legally obligated to pay rent on time. However you as a landlord can use your discretion in working something out. Perhaps the tenant gives you a portion of the rent and explains that they are paid on the 15th and can have you the rest of the rent then. If your tenant has otherwise been on time, or has been with you a long time and is generally easy to work with then you may consider allowing a late payment. If your lease is written so that a late fee can be applied you may also ask that the tenant pay the fee, per the terms of the lease, with the remainder of their rent. If the tenant is brand new to you and somewhat of an unknown variable then perhaps you consider moving ahead with an eviction and trying to find somebody new. Always weigh the costs of an eviction and vacancy first. If it turns out the tenant can pay the rest this is preferable to an eviction and vacancy.
Repair and Deduct
Utah property management law also provides for instances when a tenant may lawfully pay less than the full amount of rent. This situation is called a "repair and deduct". A repair and deduct scenario can arise when a "deficient condition" exists in a property. A deficient condition is defined as something that "violates a standard of habitability or a requirement of the rental agreement and is not caused by the renter, the renter's family, or the renter's guest". If you would like to learn more about standard of habitability take a look at my blog post "Emergency Maintenance - Park City Property Management". Depending upon whether the deficient condition is a standard of habitability or a requirement of the rental agreement the landlord has either three or 10 days to begin repairing the condition. If no action is taken a tenant can then provide the landlord a "notice of deficient condition" and choose to repair the condition and deduct the cost of the repair from the rent. A tenant may also choose rent abatement, at which point the lease agreement is terminated and the tenant can move out.
If you would like more information on partial rent payments, repair and deduct, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
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