Originally published October 17, 2023
Do you have tenants who are not paying rent? For Pawtucket landlords, missed payments hurt cash flow and create stress around mortgages, taxes, and repairs. While there is no single solution, there are practical steps you can take right now and a few strategic options to consider. We buy houses in any scenario in Pawtucket, Taunton, Fall River, New Bedford, and more.
Start With Prevention
Strong screening and clear leases go a long way. Verify income and rental history, run background checks, and use a written lease that spells out due dates, late fees, grace periods, and the process that follows if rent is not paid. Even with solid screening, life events can still lead to missed payments, so have a plan for what you will do when it happens.
What To Do As Soon As Rent Is Late
- Communicate quickly: Reach out with a courteous reminder. Keep all communication professional and documented.
- Put it in writing: Follow up with a formal late notice that states the amount due and how to cure the issue according to your lease.
- Document everything: Save texts, emails, notices, and payment histories. Good records protect you and speed up any next steps.
Your Main Options
#1. Wait and See (Not Recommended)
Some landlords hope a tenant will catch up next month. This approach rarely works and can signal that late payments are acceptable. If you choose to wait, set a clear deadline in writing and stick to it.
#2. Negotiate a Short-Term Plan
Many tenants struggle with the size or timing of a monthly payment. Consider a written payment plan or a weekly schedule that helps them get current. If you offer a temporary discount or remove a late fee to resolve the balance, put the terms in a signed addendum that includes dates and amounts.
Tip: Be cautious about trading repairs or “work around the property” for rent. If you allow it, define the scope, timeline, and value in writing and confirm it does not violate any laws or insurance rules.
#3. Offer Cash for Keys
When a tenant cannot realistically catch up, a voluntary move-out with a small incentive can be faster and less expensive than a formal eviction. Agree on a date and condition for return of the property, the amount to be paid, and how keys will be handed over. Use a simple written agreement and complete a walkthrough before payment.
#4. Begin the Legal Process
Eviction can be time consuming, but it may be necessary to protect your property and income. Follow the required notice steps, file correctly, and avoid “self-help” actions like changing locks or shutting off utilities. Consider consulting a local attorney or landlord association so you comply with Rhode Island rules.
#5. Sell the Rental (Even With a Problem Tenant)
If late rent is just one of many headaches, selling may be the cleanest exit. You can sell a property as-is, with or without a tenant, and move on without tackling repairs or a drawn-out process.
Common Mistakes to Avoid
- Letting balances pile up: Small problems become big ones. Act quickly and consistently.
- Making verbal deals: Always update the lease or use a signed addendum for payment plans and move-out agreements.
- Skipping documentation: Keep a neat file of notices, communications, and payment records.
- Ignoring local rules: Follow Rhode Island procedures for notices, filings, and timelines.
Simple Decision Guide
- Short-term hardship, cooperative tenant: Try a written payment plan.
- No plan to catch up, but willing to move: Consider cash for keys.
- Uncooperative or repeated nonpayment: Start the legal process.
- Done being a landlord in Pawtucket: Consider selling the property as-is.
FAQ
How soon should I act if rent is late?
Act right away. Send a friendly reminder, follow with a written notice as your lease outlines, and set clear next steps. Fast, consistent action reduces confusion and keeps you in control.
Can I accept partial payments?
Yes, but do it with a written plan that explains when the full balance will be paid. In some cases, partial payments can affect timelines, so confirm your approach aligns with your lease and local rules.
What if I want to sell my Pawtucket rental but the tenant is not paying?
You can sell a tenant-occupied property as-is. Some buyers will purchase properties with difficult tenants and handle the situation after closing.
Want a Fast, No-Hassle Exit?
At HomeBuyers of America, we purchase rental properties in Pawtucket as-is, even if tenants are behind on rent. You can choose your closing date and avoid repairs, showings, and long delays.
This article is for general information only and is not legal advice. For guidance on your situation, consult a qualified professional familiar with Rhode Island landlord-tenant law.
