Unique Lease causing a Unique Dilemma

[Nir]

Hi All,

I have a unique situation/dilemma:

A tenant who moved in recently, has asked me to prepare a unique Lease for him.
He has a case worker, meaning government is paying his rent HOWEVER he wanted them to pay me $100 less than the rent and said he will deposit the rest - $100 into my account on the 15th of every month instead of 1st of month like government does.
I agreed saying to myself "why not make him happy, it`s a weird request but sure, why not. I`m still getting full rent just in different days of the month!"
so we signed a Lease reflecting his request/above payment schedule.

Last month he called me (a few days in advance/before his $100 payment due date) to tell me he will not have the $100 needed. he said something like "expected child tax benefit is not paid to me so I do not even have money for food."

I sent him N4 telling him he has to deposit $200 the following month and if he does the N4 will stay between us. however, if he does not pay $200 (for both months) I will contact both LTB and his case worker.

Again, please note: government is still paying his rent minus $100 every month!

My question is would you really contact the LTB and ALSO HIS CASE WORKER?
OR would you just forget about it since it is only $100 a month!?

THANKS.

 

[Pump]

QUOTE (investmart @ Feb 22 2010, 05:51 PM) <br />Hi All,<br /><br />I have a unique situation/dilemma:<br /><br />A tenant who moved in recently, has asked me to prepare a unique Lease for him.<br />He has a case worker, meaning government is paying his rent HOWEVER he wanted them to pay me $100 less than the rent and said he will deposit the rest - $100 into my account on the 15th of every month instead of 1st of month like government does.<br />I agreed saying to myself "why not make him happy, it`s a weird request but sure, why not. I`m still getting full rent just in different days of the month!"<br />so we signed a Lease reflecting his request/above payment schedule.<br /><br />Last month he called me (a few days in advance/before his $100 payment due date) to tell me he will not have the $100 needed. he said something like "expected child tax benefit is not paid to me so I do not even have money for food."<br /><br />I sent him N4 telling him he has to deposit $200 the following month and if he does the N4 will stay between us. however, if he does not pay $200 (for both months) I will contact both LTB and his case worker.<br /><br />Again, please note: government is still paying his rent minus $100 every month!<br /><br />My question is would you really contact the LTB and ALSO HIS CASE WORKER? <br />OR would you just forget about it since it is only $100 a month!?<br /><br />THANKS.<br /><br /><br /><br />

tell that to your mortgage banker... that u won`t be paying $100 a month... it is $100 off your table so decide if you need it or not. why not lower it $100 and look for a better tenant... just something to think about

 

[invst4profit]

You have finally lost me after all this time. What business are you in?
And you gave him how long to pay it?
If he can`t pay $100 where is the logic in believing he can pay $200?

Sorry to say but questions like yours make me wonder whether you are cut out for this business.
I am very curious as to what your actual business plan and practices look like.

You got scammed by a con artist. He rented an apartment that was more expensive than he was authorized to rent by conning you into cheating the system with him and now it is going to cost you money. But it`s only money.

You can either kiss the $100 goodbye and accept the fact that you are becoming a NGO charity or you can put his butt on the street where it belongs. Either way you are likely never going to see the $100 or if you do it will be painful extracting it every month..

 

[Ready4Rent]

A 100.00 is 100.00, send the N4 and stick to it. 100 will become more and more if you let it.

I wouldn`t call the case worker just yet, if it comes to 200.00 then go ahead.

 

[DLUX]

Thats 1200 per year ! how can you afford to loose that cashflow!, kick his arse to the curb

 

[RebeccaBryan]

I would immediately take action to evict so he knows you know what you are doing and he can see you have a system in place against con artists like himself. His case worker won`t likely be able to do anything. They just pay the portion of the rent that they agreed to pay and the rest is in your hands.

 

[housingrental]

I second Greg`s post

What were you thinking?


QUOTE (invst4profit @ Feb 23 2010, 09:54 AM) You have finally lost me after all this time. What business are you in?
And you gave him how long to pay it?
If he can`t pay $100 where is the logic in believing he can pay $200?

Sorry to say but questions like yours make me wonder whether you are cut out for this business.
I am very curious as to what your actual business plan and practices look like.

You got scammed by a con artist. He rented an apartment that was more expensive than he was authorized to rent by conning you into cheating the system with him and now it is going to cost you money. But it`s only money.

You can either kiss the $100 goodbye and accept the fact that you are becoming a NGO charity or you can put his butt on the street where it belongs. Either way you are likely never going to see the $100 or if you do it will be painful extracting it every month..

 

[fumbrunner]

Have him talk to the case worker and have the case worker talk to you. Explain the situation and see if you can get the extra $100 added to the govt payment.

I`m surprised you rented to him given how tight his finances seem to be.

 

[Nir]

Thank you everyone for the Great feedback!

I will definitely take action. I guess you evict whether amount missing is $100 or $1000. However, if only $10 was missing I am sure responses would be different.

Greg, your honest direct response is also appreciated. no worries, I do not believe a word coming out of his mouth. I actually knew from the beginning there is a chance it will not work but still decided to agree if only to learn from this NOT very expensive experience.

You are correct, eventually he will be evicted if full rent amount is not paid. and (reminding) this will NOT be too expensive as mentioned 600 of the 700 is still paid every month hope this clarifies why I decided to take the risk - an opportunity to learn something for less.

Regards,
Neil

 

[invst4profit]

Nope, $10, $100 or $1000 it is all exactly the same. It is not a question of how much is owed it is a question of the integrity. Yours and his.
I have served a N4 in the case of a tenant shorting me .61 cents because when I pointed out the shortfall he refused to pay up and simply stated I didn`t need the money. I told him whether I need the money or not is not relevant what is relevant is we have a contract.
He paid the .61 rather than the $150.61 the LTB would have imposed at the time. We have never been particularly friendly since then but he has never tried to take advantage again. That is far more important to me as he was a royal PITA for the previous LL.