BiggerPockets

If you can prove that Unit 1 is a drug dealer I would call the police and discuss this with them.

If the people in Unit 2 are his customers then they are out as well. I have a clause against illegal activity in my lease.

I don't think I would be waiting too much longer.

I can't prove the tenant is a drug dealer, nor do I know for sure. I do know that they have an arrest record which includes theft and possession - enough to know I don't want them in my property, but not enough to remove them legally. The dog should enable me to remove them legally, though I'm not sure I want to force the issue with someone who has a record. Of course, he may move without much of a fuss to avoid the spotlight...

I would definitely contact the authorities and let them know what you know. You could be held liable in some way if you know and don't report, for instance if there is a fire from the coke your insurance company could say you violated the terms of the insurance by knowingly letting crime occur in your building and not reporting. This isn't really far fetched because, think about it you just acknowledged it here on this board. Protect your assets.

Congrats on taking the plunge. Now realize there are many new experiences coming your way, and they are situations that happen every day, and some handle it well, others poorly.

1st. Turn off the fear. You're in charge. It is your duplex, not theirs.

2nd. Learn, if you don't already know, the landlord tenant laws in your state/city. Abide by them, to the letter. Some of what I suggest below are ok in my area, but may not be in yours.

3rd. Your concern is for your investment, and maximizing your return on that investment. Period. You'll never rent to you, someone who looks like you, or treats your duplex as you would. That's why you have to take the lead in keeping things up.

4th. It's not personal. Don't let yourself get drawn into an argument, feel you need to explain anything, or win arguments (you'll never win a argument with a tenant). If they violate, you issue a notice. Little, if any discussion.

Take the money from the threesome now twosome, and accept the reduced rent for the remainder. Deal with the end of the lease at the end of the lease.

Schedule a thorough inspection of both units, with proper notice. Maybe even schedule a pest inspection. Let them know you and you pest inspector will be opening every door, bedroom, closet and cabinet, and inspecting for signs of insects, rat holes in walls and corners, and treating/scheduling repair if necessary. Let them know you'll be checking all windows for proper operation, the furnace for clean filters, etc. etc. Let them know as the new owner, you want to make sure the duplex is as good as it can be. You are a responsible landlord that they can count on, and you're sure they'll be just as responsible in their obligations to you.

Let the suspected drug dealer know he can't have a dog or roommate. Not confrontational, just the way it is. Not according to the lease. If you are so inclined, offer the roommate an application to apply to be added to the lease, for an increased deposit and increase in rent, of course. As far as the dog, again, for a healthy non-refundable pet deposit and increase in monthly rent, you'll consider letting them stay. You're such a freakin nice guy, aren't you? Then hand him the 3 or 5 day notice to vacate or remedy. Be nice. It's his choice, not yours. He's in the drivers seat. His choice to either live up to his agreement, pay to change the agreement, or leave. His choice. Just another day at the office for you. No big deal. You're an old hand at this. You do this all the time.
Service with a smile. And be prepared to follow through with eviction if necessary. I suggest a lawyer write the five day, and let them handle the eviction if needed.

Welcome to landlording.

Don't you just love managing rental property! JGB

I have a bunch of tenants.I will tell you what I tell my property manager.Do not get over involved in tenants problems and lives.

Simply collect the rent and handle repairs and make sure the tenants are in compliance with the terms of the lease.

I am very picky in who I allow to rent in my buildings.I turn down about 3 to 4 out of every 5 applicants.

No pit bulls,aggressive breeds of animals,sex offenders,felony offenders,drugs,loud parties,unclean tenants,evictions from other apartments,no smoking inside of the units,etc.

I go through this the first time I meet a potential tenant before I say anything else.The deadbeats leave real quick and the good ones like that I do that upfront and want to apply for a unit.

You should have researched the tenants on the lease way before closing on this property.At the least it would have given you leverage to drive down the price further to take on a bigger problem.

A good deal is only relative to the problems you take on when purchasing.Do not kid yourself on the drug dealing.If they grow pot,smoke meth,etc. the costs to remediate the units after you get them out can put you under.

Just go talk to the sheriffs department about drug damaged units.

Did you pull a criminal report for the area before buying??

Don't fear the tenants or let them control you.I bought some buildings in a nice area but the buildings were older.The units were on the verge of turning into a bad area or staying a good one.I banded together with other landlords and we got the bad element out.

We have Glocks,shotguns and everything else.I don't care who it is if they come on my property they better not try anything.We have made police reports of suspicious people,tenants trying to steal cable,power,etc.

Once the scum know they have a light shining on them they crawl away to another area to go hide under some other rocks.

So do not be intimidated.My place is cleaned up real well now.

I've used this trick to deal with suspected drug dealers.......Draft a letter notifying the tenants that you have given permission for the authorities (state police) to use your properties as a training ground for their narcotic dogs. Tell the tenants not to be alarmed at the sight of these dogs, but they could show-up with police trainers with no notice. Hopefully this will send the suspected drug dealers packing, and hopefully they won't move into any of my rentals! Best of luck.

Whatever you do, don't do it the way you're doing it now.

Problem tenants aren't people you want to build relationships with, so there's really no point in handling problem tenants personally. Lawyers, process servers, etc are better for these sorts of things. Yes, it costs money, but it is more predictable and there's generally less chance of bodily harm, especially if you own your duplex in an entity or trust that does not make it blatantly obvious who you are.

Once the problem tenants are out, then you can start building a relationship with your (hopefully law-abiding) new tenants. This you can do personally or impersonally, your choice.

Good advice, several points taken. I did get involved upstairs, but I'm glad I did. Now I have a better idea who/what I'm dealing with, and I have three tenants willing to pay and put this to rest.

The first unit is another story. I've have mentioned the dog and am using it as leverage - I want him to pay on time and be quiet. The dog can't weigh 10 pounds. I will tell them I'm scheduling a pest inspection. I'm considering having my handy-man/ county narcotics detective friend do the inspection for me. He works for free and knows how to spot roaches.

Other than that, my preference is to take the rent and not renew the lease. At the first issue, I'll give notice. I appreciate the feedback given, truly.

While I agree with Al in spirit, there are certain realities. Right now, there is nothing but rumor about the drug thing. Nothing anyone will do without hard evidence. But, he seems to have a handle on that.
A handyman/narcotics cop/pest inspector friend. That's some landlords friend.