New Flexibility to Stop Accepting Payments for a Lease
At Rentalutions, we provide educational resources and tenant screening tools that help our landlords find great tenants.
Last year, we published an 11,000-word Guide to Tenant Screening that walks you through the entire tenant screening process. Our best-in-class tenant screening tools got even better a few months ago with enhanced evictions reporting and unbundled pricing.
As much as we try to help our landlords avoid problem tenants, sometimes they slip through the cracks. Problem tenants are ones who do not take care of your property and do not pay rent on-time.
When a tenant violates the lease and doesn’t pay rent, you’ll want to start the eviction process as soon as possible.
To ensure a smooth eviction, it’s important to stop accepting payments from your tenants. Accepting even a partial payment can require you to re-start the eviction process from step one.
If you are collecting rent online with Rentalutions, you now have the flexibility to stop accepting payments from tenants who you are evicting.
Why This is Important
Let’s face it, the eviction process sucks. As a landlord, evicting a tenant is both stressful and financially painful. You’re spending a lot of time and money to resolve a situation that’s largely out of your control. To make matters worse, you still have to pay your mortgage every month, but you’re not receiving rent from your tenants.
If your tenant offers to make a payment (even a partial one), it can be tempting to accept the money and think, “Receiving some money is better than no money at all.”
While receiving a payment may temporarily make you feel better, do not do it!
In most states, if a landlord accepts a payment from his or her tenants, he or she is acknowledging a new agreement has been reached with the tenants. This will void the evictions proceedings.
This means that to actually evict the tenants, you’ll have to start the process all over again.
How to Stop Payments for a Lease
If you find yourself needing to stop tenants from making payments on a lease, it’s now really easy to do so. Just follow our step-by-step instructions below.
Step 1: Navigate to the unit that you need to stop payments
Step 2: Open the payment settings
Step 3: About halfway down the list of settings, you’ll see a setting titled, “Stop new payments for this lease” (see screenshot below)
Step 4: Toggle this setting to “Yes” (see screenshot below)
It’s important to note that any payments that your tenants have previously scheduled, including automatic payments, will not be affected by toggling this setting. We intentionally do not cancel any of these previously-scheduled payments.
To learn more about how to stop accepting payments in case of eviction, watch the video below:
As with most things, your best bet is to try preventing problems before they occur.
In the case of evictions, you can prevent these situations by following a thorough tenant screening process. To limit the chances that you’ll have to evict a tenant, you always want to require a rental application, credit and background check and eviction report.