I checked my direct deposit today from my property manager in Utah and noticed that it was short about $1000. I called my PM and they informed me that one of my tenants who did not pay moved out after being served a 3 day notice. She told me that my tenant could no longer afford to pay the rent. She was receiving alimony from her ex-husband and he can not pay her anymore due to job reasons. My PM told me that they are seeing a trend with their tenants that many cannot pay rent and are falling behind. I think this is where we will the bad economy effect snowball. One person loses a job can’t pay another and so on. Eventually everyone we feel its effect.
The good news is that because the economy is worsening the pool of renters is increasing. My PM told me that there are plenty of people looking for new places to live, which is very unusual for this time of year. People are moving from larger homes, downsizing and just trying to save money.
My tenant at my Peoria house also has not paid rent this month. He changed jobs and fell behind a paycheck. His parents or someone else sent me a cashier’s check for 1/3 of the rent last week. He says he can come up with another 1/3 this Friday and the rest at the end of next week. I haven’t given him any notice yet because honestly at this point, I’m trying to decide what to do with this home and kicking out a tenant is probably not the best thing to do.