I am having an argument with my husband. Am I crazy or is he?

Question

When we got married seven years ago, we bought a two-family house. We live in half,and rent the other half. It was the only way we could afford to own a home.We have one child.
Anyway, our current tenants are a man,wife and two kids.They have been there for two years. The couple doesn't get along,and the man has moved out for the second time, this time he has rented his own apartment. It is unlikely they can afford both places, as ours is a large 3 bedroom. They have always lived beyond their means,(expensive electronics, designer stuff). The husband is giving the wife child support, but it is going to be tough for her to afford our place. My husband wants to lower her rent by $100 a month for six months to help her get by. We have a car payment and credit card payment debt, and I scrimp to get by. We don't go on vacations, and live frugally. I feel it is encouraging her to stay in a place she can't afford, and we take the hit. He says he will work overtime to help out. Help!

It is a nice apartment in a good neighborhood, and pretty easy to rent.

Answer 1

If the woman and her kids have been good tenants, your husband probably would rather help her out for a few months, than lose good people...Your husband sounds like he is trying to help out someone in immediate need. I would ride out the six months.....its only $100.00 a month...be the better person.

Answer 2

Actually neither of you is crazy. I can certainly understand your desire to balance the books and meet the bills, after all you do have a family to worry about. So I find myself agreeing with you except that I would ask what it might cost you if you had to get a new tenant and what the risks are in terms of ensuring you get a reliable one who pays on time every month.

However I also find myself agreeing with your husband.

You have a tenant who's been with you quite a while. You can of course take the attitude that it's just a tenant, which is of course the business perspective, or you can adopt the attitude that it's a human being who happens to rent from you. This human being has been faithfully paying rent and thereby helping you survive and pay for your house. Now she's in trouble.

I agree that you have no responsiblities in terms of her care, if anyone has any responsibility to help it would be her family. And yet I question that statement. Throughout the world we see demonstrations about cold, merciless banks and corporations throwing people out on the street in the interests of increasing profits. And of course who doesn't agree that this seems rather merciless?

So what's it to be? Are you going to be one of those cold heartless corporations and throw a family out on the street, a family that has been helping you improve your future? Or will you accept that they have helped you better your life and that perhaps you owe it to them to help out a little?

Honestly I don't have the anser to that question. I understand the business point of view but I also understand the compassion point of view. In fact I tend to prefer compassion over profit so I would vote for your husband if I had a say in the matter.

How about a compromise? Reduce the rent for a period, six months perhaps or maybe only three to give the family a break. Make it clear to them though that if they can't get their act together in the agreed upon period that they will need to give notice and find a less expensive place to live. Personally I'd say six months because that's enough time for them to possibly sort out their affairs and get back to some degree of solvency. But three months might be a compromise that you could accept and it wouldn't hurt you as much.

Another compromise, assuming you're not too deep in debt, is to float the rent. That is to say, keep the rent the same but tell them they can pay you whatever they can afford each month just so long as they eventually make good on what they owe you. If you go this way you'll need to get them to sign a contract outlining the terms and you'd have to keep meticulous records. The other thing you'd need in that case is a line of credit so that you can float the debt until they finally make good. Whether you would charge them interest is up to you but I think the interest shouldn't be more than you'd be paying on the line of credit.

Either solution would offer a helping hand. The only problem with the second solution is that you face a risk. If they get too deep in hock to you they may not be able to pay you back and since they're renting they likely don't really have any assets you could seize if they default. That's why I would prefer to just give them a cash break. It's cleaner and simpler all around and you'll feel really good about it, at least your husband and I would.

I hope that helps a little. Good Luck!

Answer 3

As a landlord the best advise I can give you is this. If they have always paid there rent on time and now the drama is over I would see if she is going to have an issue with paying you now that she is on her own or if she is going to move. I can understand that you depend on the income. If she assures you there is no issue or is going to move then you know what your next move. I do not think 100 is going to help her but if that makes all the difference in her paying then I would agree with your husband as you do not know who your next tenant will be & if they are going to pay on time. Also how long it will take for you to get the place re-rented. The 100 is far better to take off the rent then loose 2 months before you get a new person in. Don't panic things will fall into place. Good Luck

Answer 4

Try looking at it this way: if she can't afford rent and has to move out, how long will it take you to re-rent the other unit? More than a month? If so, consider giving her the temporary discount to keep her there. It doesn't make sense to lose the rental income all together when a 3-6 month discount might be able to help her stay there long term. Being short $600 over the next half year might hurt your budget a bit, but being short the entire amount of rent over the next two months would absolutely KILL your budget.

Think of it less as a favor to this woman, and more as an incentive to keep a paying tenant.

Answer 5

Coming from someone who owns rentals & has family in the rental business, if she doesn't have the money now, she won't have the money later. Give an inch take a mile sort of deal...if you lower it now she WILL assume you'll keep it lowered or, heaven forbid, lower it more if she ask. Renting isn't for fun, it's for money. At the end of the day you don't do it because you enjoy it, you do it for the extra income. If she can't pay the rent, give her a written notice of eviction & give her a month or two to move. Lower the rent at this time if you really feel generous, but she needs to get in a place she can afford & you need to get in renters who can afford your place.

Answer 6

I see both sides clearly, the point for you is to not be burdened. It sounds like you have a great guy for a husband, very understanding - he stated HE is willing to work the six months. I think that is amazing and too kind. You can speak to the tenant (if you have a friendly repoire) and ask is there anyway she can cut expenses to keep the place prior to him going to such extremes but he did say ONLY six months. Don't throw it in his face if he does and she still has to go but at least you know her and obviously trust her (she does live on your property). Guess what, the worst case scenario is she stays doesn't pay you, you have to evict her and go to court to get the money back that way. It sounds like your husband is trying to keep her and help her out to skip this option. Hey, I'll take him if he's really getting on your nerves (just kidding). Be greatful and don't sweat the small stuff (material things come and go and we can't be replaced).


Good Luck!!!!

Answer 7

Your husband is wrong. He may not want to raise the rent, but he certainly should not lower it. That's not good business. What guarantee does he have that the tenant's situation will change in six months and that he'll be able to restore the rent to its regular amount? What if her situation worsens? Will he lower it another $100? No. If the tenant can't afford the rent, the tenant moves. This is good business, and it is the way you and your husband should manage your property.

Answer 8

I think your husbands suggestion is very nice. 6 months is not that long - but I wouldn't lower the rent beyond that time frame. Some people can take advantage of kindness. Actually, I don't think I would say anything to the tenant initially, first see if she can handle the rent - if she starts to pay late, then talk to her about the 6 month rent reduction and see how it goes. Good luck!

Answer 9

Okay $100 a month for only 6 months,be sure she realizes that if she can't afford to stay after the 6 months when you raise the rent again then she will have to move. But at least you are trying to help someone in need!
Be a blessing to her and help her and her children!

Answer 10

I totally understand the way you are thinking and why you would be more concerned with your own bills,. but I think your husband is wonderful. Unbelievable that he would want to help this woman and her children and lower the rent $100.00!

I agree with your husband and I would take the hit and help this woman, especially if she has children. Your husband has a heart of gold. He even offered to work overtime? Men like him are hard to find.

Well I found one, because my sister, (divorced w/2 children) is in the same situation as you financially and my husband and I gave my sister $300.00 and bought her a new refrigerator. That same day our tax return check was in the mail for over $2,000.00!

I don't know whether you believe in GOD or not, but he is watching and you will get it all back, because "You get out of this world, what you put into it"

You should be proud of your husband. Good Luck

Answer 11

I think it is a kind gesture on your husband's part. However, as essentially "landlords" i dont feel that you all should be so involved in your tenant's business...b/c situations like this arise.
You rented to apartment to them as a business deal and that is what it should stay.
However, if you all have developed a friendship with this couple, then perhaps you scould talk with your husband about the $600 ($100 x six months) being a loan and get it in writing that she would pay you back.HOWEVER, I dont feel your husband should have to work overtime to help her out. It is her situation to remedy.