Hoarder Tenant

7 Replies

Hi 

Im currently in the escrow process of buying my first multifamily property. Its a beautiful triplex w a large yard, green grass n shady trees. New wood cabinets w granite countertops n wood floors. I think it was a large house converted into a duplex n then the 3rd unit was added on. All units are 1bd n 1bth. The first unit is currently rented to an older man who works for the electric company n is said to pay hes rent on time every month. I had the appraisal n inspection done this past Friday n was finally able to see the first unit. It turns out this tenant is a hoarder! His entire unit is stuffed w mountain s of mail, trash n dirty clothes ceiling high! Not only that but a powerful smell of cat urine from the 7 cats i counted as they ran passed me when i entered the front door! No room to walk let alone sit down or sleep! He said he hasnt seen the stove in over 10yrs! The paint is peeling, the walls r cracked, the tiles r falling off in te bathroom shower probably from the leak he said he hasnt fixed which my inspector says is the cause of a huge amount of water under the unit! Did I mention the mold everywhere? Even his curtains which were pinned shut from the mountains falling over! Im still in shock! The tenant has now been told to clean up so the inspector (who threw up) can come back n properly inspect the unit. The tenant is uncooperative. The seller doesn't want to evict the tenant until he knows I'm buying. My question now is what can i do? Im really interested in the property but I don't know what kind of damage is done in the unit or how much money it would cost to fix it. The seller only offered to pay for the units bathroom shower leak n credit me 3,000 for repairs! Im no expert but im sure that the unit needs a mold inspector, n to b possibly gutted out. Please help! 

Honestly......this is your 1st deal.....I'd say move on.

I don't know you and I'm not saying that you cant handle it, but why not start with something a little easier for your maiden voyage?

I don't know landlord/tenant laws and the eviction process for your state but that alone could be costly. Fixing the unit, depending on the damage and your skill set could run $10-15k or more.

I'm assuming there are easier deals in your area of course.

You are going to run across this situation along with others every now and then. 

This person has been there a long time so the place will likely need a lot of work.  Estimate for what you can see and then assume what you can't see will need to be replaced.  Unless they are promising you a new unit, you will probably not be able to recoup all of the costs from the seller, but you should try to negotiate what you can.

Make the seller evict the person as part of the closing stipulations.  You will probably need to put some of your earnest money into their pockets to accomplish this. 

You will need to finish all of your dd and insure that your loan is a go before you agree to something like that though.

When all is said and done, you will have a nice unit with a new resident.

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btw...  The cat urine is a process in itself.  Be sure that you have your bases covered on dealing with that.  I usually throw everything on the floor out, soak the place with quality enzymes designed for pet urine, and clean everything thoroughly.  I then use a high quality primer and paint  and have it sprayed on the walls.  I will also spray the enzymes into the air handler ducting as well.

There are companies that will do the cleanup for you but they are expensive.

The very first thing I would research are the landlord/tenant laws in your city.  In Washington DC, it's a very time consuming and painful process to evict anyone, even a hoarder who is clearly living in conditions that must violate several of your city's building and health ordinances.  

If you want to play it safe, assume that the place is going to need a gut job and run your numbers accordingly.  

Thank u for ur honesty! I really thought i was getting a deal it seemed move in ready n then this...the tenant has been there 23yrs n from what i can make out i would need to put a new shower, toilet, n everything in the kitchen! 

You will probably need to gut the unit--to include taking out the drywall and subfloor. I think the previous estimate of $10-15k is about right on. It may take a few DAYS just to get all of the trash and other crap out of there (maybe even two dumpster pickups). 

I don't know the entire situation but I would negotiate at least $20k off of the sales price or take at least $20k seller credit (which I always prefer). Leave the tenant in place for the sale then start eviction the day of closing for "unkept, untidy, unsanitary conditions/excessive pets/excessive damage to the unit...etc." 

Just my two cents. But if you are this far into the due diligence might as well keep pushing and see what you can negotiate, if the sale does fall through it will be a good lesson and practice on your next one!

Anyone ever cleaned a hoarder house with rabbit etc (animal poop) and human poop in bathrooms? A wholesaler is selling a property which has up to the waist in treasures/trash in almost each room. They say the well got broken so the hoarder was doing it without flushing it down. When the toilet got full in both toilets was doing it into the vanity sink. I had a camera with a good flash and I took several pictures that shows a lot. The corridors are vinyl but they look brown and you feel like walking on 'carpet' of animal poop. The house structure looks good but I don't know what would be required to sanitize the two bathrooms