Most Tenants pay rent every month directly to their Landlord. Some deposit it into their account or send it through zelle or venmo. While this is standard, there are Landlords that allow a Tenant to pay the Mortgage. This can be problematic for a Landlord. To learn about why Landlords should not allow a Tenant to pay the Mortgage, contact the Law Office of Brian P. Kowal, PA at (954) 990-7552.
Landlords should not allow a Tenant to pay the Mortgage
Receiving Rent is essential for Landlords. They use it to pay the mortgage, repairs, and maintenance of the property. On other hand, there are Landlords that allow their Tenant to pay rent directly to the Mortgage Company. This can be risky because they are trusting another individual to timely pay their mortgage. Failure to do so can result in the Mortgage Company initiating a Foreclosure against the Landlord. In addition, even if it is agreed to in the lease, it does not protect the Landlord against the Bank. The only recourse they have against the Tenant is to file an Eviction against them.
Some Tenants that send their rent to the Landlord’s Bank may claim they have an equitable interest in the property. Unfortunately for Landlords, if a Tenant raises this as a defense, the County Court Judge must send the case to Circuit Court. It will no longer be an Eviction but an Ejectment. Unlike an Eviction, Ejectment actions are a much longer process. While the Tenant’s Defense is usually without merit, a Court still has to address it. To avoid running into these circumstances, a Landlord should have a written lease with the Tenant requiring them to pay rent directly to them. This will help avoid any potential issues they could have during litigation.
The Law Office of Brian P. Kowal, PA strongly advises against Landlords allowing the Tenant to pay the Mortgage. Not only do you risk having to file an Eviction to remove the Tenant, you may lose your property to Foreclosure. Therefore, it is important that a Landlord demand that the Tenant pay rent directly to them. If you have questions about why a Tenant should not pay a Landlord’s Mortgage, contact the Law Office of Brian P. Kowal, PA at (954) 990-7552.