Dear Nina, Thank you for your additional information,
Every landlord who rents property wants to be paid in full. The payment of rent should not depend on whether or not the tenant's business is going well. If he has already told you that he cannot pay the rent in full, then he certainly will not pay you the 4% increase every year. You are the only person who can make the decision of keeping him as a tenant or evicting him because the tenant has already told you that he cannot pay the rent. If I were in your position, I would not want to have this kind of tenant until 2020, another 7 years with a tenant who will not pay me the rent in full.
You must give him notice in writing that he is in default because he has not been paying the rent in full. So, you must take the following steps:
1. Send him written notice that he is in default;
2. Demand payment in full of all amounts he has not paid;
Then, if you want him to remain as a tenant, tell him
3. He must pay the rent in full on the day that it is due if he wants to remain a tenant, plus any late fees and the 4% increase each year;
If you do not want him to remain as a tenant, then say the following in the notice:
3. Tell him he has 30 days to vacate the property and return the keys to you.
I realize that this is hard, but those are the only two options you have. You cannot physically force someone to pay rent if they do not want to pay the rent. By giving him this notice, he will see that you mean business and that if he does not pay, he must leave the property. That way, you can rent the property to a more responsible tenant who will pay you on time and in full.
I realize that this is not exactly the Answer you were hoping for and it would have given me great pleasure to give you the Answer you wanted to hear, but I have an ethical obligation to you to give you only correct Answers and information, so I am respectfully asking that you not hold the law applicable to your situation against me,
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