Comlicated Lease, Tenant starting to be flaky.

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obelix

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Gwinnet GA -

So, let me get some opinions from you guys as to the eviction for this tennant, what will happen when I got to court with the terms of the lease, the promissory notes, and what the tenant and I have done do far.

Little background about the people. They were living in a Hotel and didn't have much money :angel , so I decieded to lease my place to them under some unique circumstances.

Since they didn't have a lot of cash, I let them move in July 12th, the terms of the lease are July 12-July 31st, but since they didn't have the security deposit or the cash for rent immediately for July 12-July 31st, I put on the "monthly rental" line of the lease:

"$1150.00 Due starting Aug 1st, prorated rent from July 12th to July 31st in the amount of $600 due in $100 increments monthly starting Sept 1st, 2010 (promissory note included for $600 prorated rent)." The intent for the quoted sentence above in the lease was to make them pay regular rent starting Aug 1st, but allow them to pay me the rent they acrewed in July over 6 months time, giving them a month to get settled in to the house before they had to start paying.

On the Security deposit line I put:

"$500 Due starting Aug 1st, $500 due in $100 increments monthly starting Sept 1st (promissory note included for $500 remaining deposit)." The intent for the quoted sentence above was to allow them to move in the house July, without paying security deposit, then pay me $500 with the first month's rent, and defer the rest across 5 months starting Sept 1st.

They signed the lease and both promissory notes.

This was probably a bad idea to lease to someone who had 0 cash, I know but that's the lease I signed. I'm a new landlord and I understand what a stupid thing it was to do now, but hindsight is 20/20 and I'll not make this mistake again. Moving forward to what has happened after we all agreed to the lease and promissory notes:

So Aug 1st comes around you can guess that they had nothing for me. The lease had a 5day 50$ penalty with $10 daily after that. 5th of the month came, nothing, gave them a quit notice/demand for possession on Aug 5th to be out by the 8th, I also sent it certified, they paid me Monday Aug 9th, the full rent and the first $500 of security deposit. I waved the late fees and "wrote them a reciept for 0/$80 paid late fee, rest waived".


Sept 1st comes around, and if you guessed they didn't have the rent, your right, on the 5th, he gave me $500, said the rest he could do the next friday. Next friday came, he gave me $250. Said the rest he could do next friday. Next friday came he said he had other bills and couldn't pay, so I went over there and had a talk with him, told him I expected to be paid in full each month at the due date, and that I understand they are broke but I need to get paid to in order to pay the mortgage on time. I also told him that I'd give him until November 1st to stop this partial payment business, on November 1st I'd no longer accept anything but the full payment amount at a time and that I expect late fees this time. I showed back up the next day and put another quit/demand for possession letter with the quit date to be the next friday (9/24) at 9am on the garage or else get out, I also sent him this Certified mail. I also sent him certifed a few days later about the partial payment business that we discussed.

Next friday at 9am I went down to the gwinnett county magistrate's office and filed disspossessory paperwork and paid to have them served. I put on the form what I wanted: rent and that they defaulted on the $500 and $600 promissory notes. Later on that night, he calls around 10pm (last night) and says I got the money come get it. I show up, he has the rest of the cash to pay for the rent only to make up a total of $1150 (which I took home with me and made a copy of the money order showing it was printed at 9/24 21:50 hours), but doesn't have the cash for the late fees or the promissory notes. I told them it was unacceptable and asked him when he could get out, he said he didn't know. I told him I'd cap the late fees to $150 and needed the promissory money right ASAP. He said that he could pay next week and also rent for Oct 1st is due next week.

I think at this point it's highly unlikely that he'll be able to come up with all the cash next friday. So I still want to continue the dispossessory proceedings. So assuming that they answer to the summons. I have already written them a letter (although not mailed until after I know they have been served), that I'd cancel the proceedings if they pay the court costs, what is owed for the promissory notes, late fees, which I have now agreed to reduce to %10 (mostly because I belive in GA most judges won't allow more than %10 in late fees). And of course they paid me the 400 that they owe'd on the rent the night after I filed..


So now to the point, I have some questions.


1) As far as the paperwork goes I submitted to the court, once the court date comes around will the judge expect them to pay the late fees, the promissory notes $100+$100, also what may be due for the promissory note in October (another $100 + $100), and what they will owe for October's rent (which I have not doubt they'll pay partially up until the court date should they respond). If not will he order them out.

2) More specifically about the promissory notes, will the judge enforce them as part of the lease or are they are sepearate issue? Is defaulting on them a breach of lease since they are on the lease?

3) Since I accepted the partial payments in August and eventually the full amount for rent what right to I have for late fees, can I get full amount for late fees since they paid partially or not?

4) What about Octobers rent/latefees/promissory note payment. They are not specifically mensioned in the dispossessory filings because they are currently in the future and unknown at this point, but if they don't pay like their track history dictates then will the Judge lump this in with the general case I have against them?

5) Lets say that they pay the late fees and promissory notes that they owed for September, but then stiff me on October's rent, promissory notes or latefees occured in October, can I still go to court even though they settled up for September and expect the Judge to make them pay October's debts or get out (assuming court date is in later october or early november)?
 
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Had you not taken any money after serving them the notice to quit, you could proceed to an eviction hearing.

That isn't what transpired.

You took money after the notice.

That in effect allowed them to cure their breach.

It's back to square one for you.

When you get to court and the judge learns you've accepted partial payment, your suit will be dismissed.

You can't accept funds are you ask them to quit. If you do, it cures their breach.

I'll get you a cite, shortly.
 
Thanks for responding to my question.

They still owe me late fees. Because I accepted the 400 then that means that I have no right to the late fees? When I took the 400, I wrote them a reciept for 0/$150 for the late fees with $150 balance. Also, when they don't pay in october, will the judge evaluate that as well? What about my promissory cash, that is somewhat seperate from the lease, but yet still on it.

Reading the reasons you can evict, breach of lease is one. They are not paying the promissory notes which are listed in the lease. Since I put this on the dispossessory paperwork will the judge consider their nonpayment of that reason to evice?
 
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I didn't say you can't have them evicted. Yes, a judge can evict them. But, you accepted a partial payment.
That will hamper your current eviction efforts.

The judge will most likely dismiss your current action. You'll then have to start all over and initiate another eviction proceeding. The lesson here is, don't accept partial payments. It will quell your instant action. Thereby, forcing you to bring a new action.

Those sidebar deals will most likely have to acted on separately. You'll probably have to sue for those debts in separate actions. I don't think the judge hearing an eviction will rule on that promissory note.

But, you're only fooling yourself. They can't pay the rent. Why do you expect these deadbeats to be able to pay the late fees?

If it were me, I'd stop taking any payments. I'd have them evicted.
 
Your right, I don't expect them to come up with the late fees, I'm 99.999% positive that they won't. I'm guessing that September is a wash and the currently filing, however I'll still try to go as far as I can go with it. October I plan on not taking any more partial payments, this has to be a come to jesus moment to those guys, either pay or go. So even though I've already screwed Sept let me put a hypothetical (but likely) situation in front of you.

Oct 1st they don't pay
Oct 5th they offer to pay 1/2, I refuse.
Oct 6th they get served for the dispossessery action I have filed on 9/24.
Oct 10th they respond to the court.
Oct 20th court date.


So given that they havn't paid october, will the judge still dismiss even though they are currently in breach of the lease.

If I can anticipate him to dismiss, say on October 5th they can't pay, October 6th I sent them the quit notice, Oct 9th I file a second action (to save time should the first get dismissed). How would the court view two actions against the tenants.
 
You must start over.

You must serve them another notice to quit.

Your current action will probably be dismissed.

Why?

You accepted partial payments.

You're better off by issuing them another notice to quit.

Wait the statutory time, because they won't leave.

This time, accept no payments, partial or full, if you want them evicted.

After the required time has passed, file another eviction. In the interim, request your current action to evict be dismissed.

If you want your rent, request the judge to put that in his decision, along with the eviction.

But, you'll then have to try and collect after the fact.
 
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