Dave Says: How can I evict from out of state?
Dear Dave,
I have a rental property located in another state. The current tenant is two months behind in rent, and says she is having financial problems. I offered to let her out of the lease if she would just move. That was 30 days ago. She will not move out and has not paid. Do I have any options other than getting an attorney involved? I’ve spoken to one and it could cost nearly $700 just to get started.
– Janice via email
Dear Janice,
That’s an absurd attorney’s fee for an eviction. You should check with some other attorneys and get a more reasonable price. Then, I would call this renter and gently find out more about the financial problem they’re in and what’s going on.
You might want to agree once more to waive the back rent if she’ll agree to be out by a certain date that you both agree on, adding that if this person is not gone by the date you agree on you’re going to have her removed and take everything she owns through a court proceeding. I know you don’t want to be mean, but she’s being unfair to you by living in your house free of charge.
If you don’t want to go this far, you might want to offer her $200 to leave. It would help with her financial difficulties and get you your house back. Otherwise, I’m afraid you’ll have to get some legal action.
– Dave
Dear Dave,
Would teaching six to 10 piano lessons a week be considered a business? If so, how would I go about paying taxes?
– Jennifer in Toledo, Ohio
Dear Jennifer,
If you’re getting paid for it, then yes, it is considered a business. If you’re earning more than $650 per quarter you are required to pay a quarterly estimate on your business, or an estimated tax. It would be a good idea to set aside one-fourth of what you’re earning for taxes.
I probably would open a small checking account listed with the business name. I would deposit all my income from that business into the account, and any expenses I have would come out of it. What’s left over is called profit, and that’s taxable.
– Dave
Dear Dave,
My husband works in the chemical industry, and he’s afraid he might lose his job. There haven’t been any layoffs in the industry or the area, but he’s a worrier. We don’t have any credit card debt, just our home and $28,000 on the car. Is it OK to flip-flop baby steps two and three of your plan?
– Grace in Houston, Texas
Dear Grace,
Let’s do a quick review. The baby steps, in order, are: 1) have $1,000 in an emergency fund, 2) pay off all debt except for your house, 3) go back to the emergency fund and fully fund it with three to six months of expenses, 4) fully fund 15 percent into pre-tax retirement plans and Roth IRA, 5) prepare college savings for kids, 6) pay off your home early and 7) build wealth.
No, we don’t flip-flop the baby steps just because someone’s a worrier. I want you out of debt, and then you get that emergency built.
If you’re really worried, sell the car. Do that and you’ll be debt-free except for your house!
– Dave