I DO know that evictions for non-payment or late payment are the easiest to pursue.

Make sure copies of letters you sent, checks for partial payment, written responses from the tenant, etc. are all available to you to show a judge.

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This is true it takes a very long time. I know of two instances where a landlord wanted the tenants out of their owner occupied 2 family houses. I think it took months along with many court dates (time off from work). In those two cases the landlords just wanted the tenants out for other reasons it wasn?t about late rent. It was more for noise, filth, and number of people/pets living in the apartments.

Good luck

My understanding is that they are now in arrears. As such unless (as Amy took the words right from my brain) they are paying much more than the place is worth in today's market, I would not consider renewing an annual lease in May.
Perhaps if they play catch-up by then you might reconsider.

Once they DO file bankruptcy you might kiss any arrears bye-bye and it is probably harder to evict someone in the midst of bankruptcy proceedings, I'm not sure.

Maybe a notice of eviction TODAY might be a good idea to head off the wagon train but if you are going to face cragslist for another 8 months or longer with NO rent maybe having a rotten tenats is better than none?

It's a tough position to be in.

Needless to say, document EVERYTHING.

What are the issues in that area that are making it difficult to get tenants? Are you maybe charging a little too much? What are rents for similar apartments in the area? As long as the rent is way above your break even point, I rather have a reliable lower paying tenant than an unreliable higher paying tenant.
As G_Elkind said you need a lawyer to CYA.
But since they do appear to paying now and are making an effort pay what is owed, maybe you could work out a payment plan with them about the back rent. If you start eviction proceedings you are taking a risk that they won't pay you at all anymore. Eviction takes long time and generally favors the tenant in NJ. You can't force them out if they are paying.
If they have a job and are still working, maybe you can ask them to set up bi-monthly payments through their bank or employer so you get paid electronically as soon as their paycheck hits the account. My brother did this with his landlord and it's a win for everyone. He never had an issue paying the rent he would just forget or run out of money in the first half of the month. Now he doesn't have to think about it and the landlord is happy getting the money twice per month.
Good luck! Hope things work themselves out without expensive lawyers and nastiness.

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They might be really nice people but I agree - if I were you I'd take my lumps and look into starting the eviction (for lack of payment) straight away - they might just leave once they see that you have filed - the forms are all online and can even be done without a lawyer - if the building is owner ocupied it should be fast and pretty easy - but none of this is true once they have filed for bankruptcy and you are placed on their "creditor matrix" - also at that point they can make it so you can only talk to them through their lawyers. It can get real expensive in legal fees for you really fast!!!

No harm in talking to a lawyer yourself - that is if they give you a free consultation - in any event I would give the tenants notice and then file for eviction ASAP!

If the area is a little challenged in the future still pull credit - but maybe consider targeting students or visting short term foreigners and perhaps even offer the place furnished. And in the future keep in mind that a lack of credit history is much better than bad credit! Next time you must check past landlords - but I am sure you are kicking yourself enough.

Wish you luck!

You're between a proverbial rock and and a hard place.

You need the immediate and timely advice of a competent local attorney with landlord-tenant and bankruptcy experience. Most competent attorneys should be willing to provide an initial consultation without charge. Waiting to determine a course of action until after a bankruptcy process has started, might significantly limit your options.

If you don't know where to start, this web link should help: http://www.martindale.com/

G

also, what kind of tenants are they otherwise? my tenure as a landlord was short, but had I had quiet and courteous tenants who paid late, rather than the timely assholes I ended up with, I might have stuck with it longer.

Have they been consistently a month and half behind since moving in? How partial are the payments they've been making?

OK, you say it's tough to get good tenants where you are, but are they good tenants? Have they been paying on time consistently for a long period and then fallen back due to loss of employment? Or has this been going on basically since they've moved in?

Sorry, I don't know the tenancy/bankruptcy laws, and it sounds like you want to give them time, but I don't see how you can renew their lease in May if they're not completely caught up by that time. Unless you are satisfied with these partial, late payments.

My tenants (in 2-family, with owner occupying) informed me they will be filing for bankruptcy but intend to catch up on their rent. I have been very understanding of the tough times they are going through but for several months have only been getting partial payments and they have been consistently a month and a half behind. Would rather work with them as there are lots of vacancies in area and took 8 months (3 agents) to find these tenants (on craigslist) who are nice even if financially irresponsible. I want to believe that they will get back on their feet and be good longterm tenants. Don't want headache of eviction but need to cover myself.

The lease is up in May. I believe they will want to renew and so they should want to do right by me. They are using legal aid lawyer. In worse case will they be able to discharge any back rent and still live in my house? or will the court make them work out any back and current rent payments if they want to stay? It does worry me that it came to light that they stiffed their last landlord where they had a commercial space. I am not a big landlord, just and ordinary homeowner with my own debts and this situation is stressful but eviction and vacancy may be worse and finding good tenant in this area of jc has proved difficult.

Any advice/experience with bankrupt tenants appreciated.