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Hmm. Strictly business, right? If they can't pay the rent per lease and on time, let them break lease without penalty or evict. Sounds like right now you simply cannot afford to make concessions with the rent payment.

If they can't pay then kick them out. Yeah it sucks but you have bills to pay and can't let them live there for free when someone else can pay the rent.

I am sorry!! We are renting our condo and break even too. No way we could afford two mortgages and day care. So far our renter has been great.

Evict them immediately. You don't need that! Especially if you an easily rent it back out. I have a rental, and I'd never permit that from tenants.

Also, make sure you know the renter/landlord laws for your state. (Easily google-able.) There are FAR more protections for renters than there are for the landlords.

How upsetting. sorry you have to deal with this!! I would def check w/ landlord/tenant laws in the state before making any decisions. Typically, the residential LL-tenant acts afford quite a bit of protection for residential tenants and you don't want to risk any problems later.

I would agree to break it and take a month's rent outbid security deposit. Better to deal with it now vs later!

@grizz: not to be a debbie downer on this thread, but make sure you know your state's laws about eviction notices (if you go that route), and make sure you word the 30 days' eviction notice exactly right.

I rent my house in Texas (and live in another state) and I have a friend that does the same. She recently had to evict her tenants because they kept paying late and were causing other problems for her, and she sent a 30 days eviction notice, and the tenants did not move out (also did not pay). So she had to pay for a lawyer and take them to court, where the judge sided with the tenants (even though they hadn't paid~~~~!!!) just because she didn't word the eviction notice correctly for Texas rental law. So then she had to retain a second lawyer, reissue an eviction notice, go back to court (after either a 30 day or 60 day waiting period in which the tenants paid nothing and she lost money--I can't remember, but that's the standard for an eviction appeal in Texas), and then finally she got them evicted.

It's been a nightmare and it really terrified me because I also rent my house. I haven't had any problems yet (knowck on wood), but I'm now considering paying a property management company just in case of future problems (because they would know how to do everything correctly).

Ugh! I feel you on this. We have a really nice living room/bedroom/bathroom space in our basement that we've rented out the last few years. We've had wonderful tenants and the money has really helped with the mortgage. This year however, we've had the tenants from hell. They never pay rent on time, they have damaged our property, the space is a disgusting mess, they are disrespectful, and they keep strange hours and are very loud. The last straw was when we came home to an empty house with a fire roaring in the burn barrel outside (we live in a rural area) during a burn ban! That night, we let them know they had to be out in thirty days and gave them written notice. Luckily, our lease agreement is a month to month arrangement, but since then they have repeatedly threatened to take us to court or file complaints about us because I'm apparently mean and there was a leaky pipe that DH fixed as soon as they told us about it. We've got about three more weeks till the move out date and I'm really worried they won't be out. Then we would have to file an official thirty day eviction notice with the courts and it would be another month of them being here. I'm also really worried about the condition they'll leave the space in. I'm 28 weeks pregnant now and will not be a happy camper if I have to scrub the basement when I'm 31 weeks! We've definitely learned some lessons from this experience and learned that in Michigan, the law really favors the tenant. We will definitely be taking a break from the landlord game after this!

My best advice is to really do your research on the laws in your state. I've learned a lot about how month to month leases differ from other leases and how that will kind of help us out. Best of luck and I hope you're able to find good tenants next time!

If the lease is up in June, then get them out. You don't need them to enter into another year of a lease and then them not pay and having to really research how to evict them. Give them the notice that you will not be renewing their lease (landlords can do this too if the terms of the lease are up) and inform them that you'll be keeping the security deposit and send them an itemized list of how much everything will cost to repair to prove why you need the entire deposit (this is required within 30 days of the lease ending in my state) and get it back on the market with someone else. You don't need to deal with this crap!

@grizz: Ahhh...that's a huge bummer. I'm thinking that unless you have a clause in your agreement that says you can break it with xxx days notice, you're stuck until January unless they don't pay. If you do have that clause (we put 60 days notice in ours that the landlord or tenant can break the lease without any incident), give them the notice and get them the hey out of there!!