What if my tenant stops paying?
You pay the whole payment yourself until it is settled, and the lender is owed the same amount either way. So the real question is how many months you could carry. If it goes to court, the court sets the pace, not you.
WHAT MOST PEOPLE ARE NEVER TOLD
The payment does not wait for the court. Your lender is owed the whole amount every month this takes, so the months you can carry alone are what decide how this goes.
In order, keeping a copy of everything:
- Talk early. Ask when the rent is coming.
- Write down what you agree: the amount and the date.
- If it stays unpaid, give the written notice your lease and state law require.
- When the notice runs out, file where the home is: a justice court in Texas, a county court in Colorado.
- Never lock a tenant out or shut off utilities. Only a court can order a tenant out, and both states let the tenant sue a landlord who tries.
Texas and Colorado differ. Texas law is Property Code chapters 24 and 92. Colorado law is Revised Statutes title 13, article 40. The Texas State Law Library and the Colorado Judicial Branch publish the steps and forms.
To make it less likely, set written screening standards and apply them the same way to every applicant. Use a written lease. Take rent in a way that leaves a record.
GOOD TO KNOW
The cushion is savings. Before you buy, count the months of the whole payment you could cover alone, and treat the reserves a lender asks for as a floor. A wrong notice can get a case thrown out, so have a local attorney check yours before you serve it.
Yours is a little different. They all are.
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WHERE THIS COMES FROM
- Texas Property Code, chapter 24, Forcible Entry and Detainer (eviction suits)
- Texas Property Code, chapter 92, Residential Tenancies (lockouts, utilities, applications, rent records)
- Texas State Law Library, Landlord/Tenant Law guide: Eviction Process
- Colorado Judicial Branch, Residential Evictions: Start an Eviction (notices, forms and filing under C.R.S. title 13, article 40)
- Colorado Judicial Branch, Unlawful Evictions
- Fannie Mae Selling Guide B3-4.1-01, Minimum Reserve Requirements (08/07/2024)
- HUD, Housing Discrimination Under the Fair Housing Act
Researched and written by Series Homes. Checked against its sources on . Lending rules change. This page is general information, not a loan offer or legal or tax advice.