It’s every Landlord’s nightmare: Your tenants are in arrears, offering only excuses, and there is no plan for payment in sight. While no one wants to initiate the eviction process on a resident, we understand that your investment needs to be protected. Evictions cost property owners a lot more than just lost rent. It’s important to note that this post ONLY refers to evictions for nonpayment for tenants residing at a property within their lease terms — we will cover other situations (like month to month tenancy or evictions for property violations) at a later time, so be sure to check back soon!
Effective May 20, 2019, Colorado law changed to require a 10-day Demand for Rent or Possession (Demand) as default unless your lease specifies otherwise. This change essentially extends the period when the Landlord is required to accept funds (if paid in full) before the case is filed with the courts.
Timing is tricky, and the new legislation has complicated the issue more by putting owners at a greater risk for loss with the extended timeline. While we cannot say what is right in your situation, our approach to handling past due tenants has minimized the potential for lost rent to our owners by increasing tenant accountability and nearly eliminating delinquency each month. Avoiding evictions altogether is a lot easier and more cost-effective for everyone!
Here’s the MOD Way for handling a past due tenant:
- We reach out to residents who are delinquent on the 4th of the month to let them know their balance and request that they contact us ASAP to set up a payment plan.
- We begin serving Demand (free download below) to residents with outstanding balances who have not set up a payment plan/initiated communication by the 5th of the month.
- Delinquent accounts are monitored daily, the property is inspected routinely from the exterior to monitor activity, and regular attempts to contact the resident are made.
- After the 10th day, the property is inspected for surrender and if the resident still maintains possession, the Demand is promptly sent to our legal team.
- Our attorneys file the Demand in the appropriate county and a court date is set; the resident is invoiced for legal fees (per the Lease), served with court paperwork, and attempts to contact are continued by our team.
From here, the resident can typically still cancel the eviction by paying their balance in full via certified funds, including the legal fees. However, we ensure the next steps are navigated delicately to best protect our property owners’ assets. If they do not pay, the eviction is carried out with the assistance of law enforcement and our maintenance team.
We’ve included a link to download a FREE fillable PDF version of the Demand for Rent for your use here
Having trouble managing your rental property or tired of the hassle and need some expert advice? Schedule a time to chat with one of our property managers today