Real Estate Brokerage & Property Management Blog

Here you will find the latest real estate endeavor stuff I engage in on a daily basis.

Monday, May 18, 2009

Recession Business Decision

Hi Prospects & Friends,

I wanted to share a real life business experience with you all that just happened recently, and hope you all learn from it. I recently had a tenant contact me by phone and said he loss his job of two years and would not be able to pay rent anymore. At first as a business owner I went into shock and told my tenant I would have to call him back so I could figure out what I needed to do to work our such a situation. I immediately pulled his file from my filing system and glanced at his lease and saw he would still owe me $8,500 since he signed a 13 month lease this year. After careful consideration I called back my tenant and said their is no need for me to hold you accountable for the remaining $8,500 you will owe me, or me start the eviction process because at that moment I felt sad that he was going through so much. He was taking care of his ill mom, dealing with a divorce, loosing his truck, & at that second I put myself in his shoes & told him I understand as a individual & not analyzing the whole situation based just as a business. I told him he could leave out of the lease without owing me the $8,500 and to stay with a friend or family member until he found work and not to tie himself down to another lease, and I wished him luck. He told me he didn't understand why I didn't put a landlord lien on his credit for the $8,500 he owed me because he's seen his friends go through same situation with other places they've rented and their property managers started the eviction process with no concern of their personal situation. I told him just think of me at this point as someone assisting you from the work of an angel, and not a business at this time. He told me thanks and he would never forget how I helped him in this bad recession. I realized as a business owner no matter what my business mind said was the normal thing to do, which was start eviction process, it was my heart as an individual that realized what if this was me? I know there's not many businesses out their that will take a lost first, because it's not business smart, but I guess in my case no one is telling me how to run my business, since I'm the owner. It is always wise no matter what to look at every situation as a business owner very carefully, because you never know when something major will happen to you. Many of you may see me as taking a major loss for not collecting the $8,500 from my tenant, but I see it as a gain, because I know somewhere someday God will look back on my decision and be very proud of me.

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