Alright, let me give you a situation:
Imagine that you own a house. The house is being rented out to a family of husband and wife with 4 children. The husband is the only breadwinner of the family and the wife is a homemaker.
You’ve signed a one-year lease with the family (i.e. the family is liable for one year’s rent).
A few months in, the husband suddenly dies of a mysterious illness. Naturally, upon his death, all of his assets will then be frozen (because he doesn’t have a will). Take note that all the bank accounts with substantial amount of money is under his name (including the checking account).
Obviously now you’ll be having non-paying tenants.
The question is, what would you do? Do you ask them to leave or do you let them stay in the house for a while. Also remember that you as an investor needs to service the mortgage repayments every single month.
Assume also that you yourself are running a bit tight on cash and you usually rely on the rental income to settle the monthly repayments.
So, what would you do?
Come on folks, share your opinions in the ‘comments’ section.
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