First Multifamily - What to do with existing tenants

First Multifamily - What to do with existing tenants

Member since 2025 · 9 posts · 12 votes

Hi,

After a year of research and multiple offers, I believe I am closing on a 2 family in Connecticut in January 26. I am super excited and plan to “house hack” for a year or two since the property needs renovations.

I am reading Managing Rental Properties by Heather and Brandon Turner this weekend and I’m confident this will help answer some broader questions. I have a lot of local resources to bounce things off as well. 

I need some advice with how I might consider handing a tough situation (for me at least) with existing second floor tenants. The tenants would like to renew according to the listing agent and are willing to pay market rent. Let’s assume this is true for this discussion. The second unit is mostly updated, and aside from the carpet which I would love to remove, doesn’t need much work. I still plan to refresh the unit because my ultimate plan is to live on the second floor. However for now I plan to move into the first floor and renovate that, plus take the ceiling down for some repairs and sound insulation.

My main question is how you might suggest dealing with a problem. The tenants are neat, but they have two cats. When I toured the property the second floor smelled horrendous. Even the basement smelt bad from the cat smell in the HVAC. Part of the problem is the litter boxes were not cleaned out and smelt like… number two… The second problem was the carpet isn’t helping the situation since the cats track that litter box smell around. And the final problem is the litter box was located right by a hvac return.


I am very hesitant to directly address the smell because of horror stories I’ve heard with “ESAs”. If I hit the issue head on I worry they could leverage me later if I try to get them out saying I’m discriminating on the ESA status. I simply am not - I am fine with pets or ESAs as I am required to be. I just cannot deal with smell. My friends who have cats do not have this issue but they strongly advised I discuss litterbox cleaning, remove the carpet, and clean the ducts.


Their lease expires in 2 months. What would you suggest? My initial reaction was to come in, meet them, and give them a list of maintenance I’d like to do including hvac cleaning. Then have the hvac guy who I know well make casual reference to the fact the litter boxes should not be near the ducts. Then perhaps I can discuss their interest level in me removing carpet or at the very least cleaning it professionally.


The property location is a relatively upscale area and getting nicer. I plan to make the unit on the middle to upper end finishes scale, including removing carpet. It seems that I could have that done while they occupy the unit with a little creativity.


Any and all advice will be appreciated!

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    9mo

    Since you are in an owner-occupied dwelling of less than four units, federal law does not require you to accept ESAs. (Check your local laws.) Moreover, many ESA requests are fraudulent and there are ways to deny them legally.

    Most leases have a clause related to housekeeping.  Simply notify them that they are in violation of their lease.  Once they are compliant with their lease, you can discuss whether or not to renew them.

    • Member since 2025 · 9 posts · 12 votes
      9mo
      Quote from @Greg Scott:

      Since you are in an owner-occupied dwelling of less than four units, federal law does not require you to accept ESAs. (Check your local laws.) Moreover, many ESA requests are fraudulent and there are ways to deny them legally.

      Most leases have a clause related to housekeeping.  Simply notify them that they are in violation of their lease.  Once they are compliant with their lease, you can discuss whether or not to renew them

      Thanks - I had seen that but haven’t verified locally. I fear the damage from the cat may already be done anyway.

      The existing lease is horribly written it has no mention of housekeeping so I would be replacing anyway.

      Any general advice on cats generally? Going forward I never would accept one again. Am I better off getting the cat out now and trying to fix the smell hoping it’s just mostly in the carpet, ducts, and paint? It will definitely be hard on me having no tenants for an extended period of time. Not a concern on paying the mortgage just not ideal given I need to do other work. 
  • Property Manager · Southfield Mi · Member since 2018 · 185 posts · 173 votes
    9mo

    My advice would be to show the vacant unit to others and have them fill out a questionnaire regarding the unit. If enough people mention the odor and have concerns about the tidiness of the dwelling you should share their concerns with the existing tenant and use this objective feedback to drive the point home. It is unacceptable.  

    Cat dander can definitely travel through ducts and there are many people with extreme cat allergies so I would also raise this as a concern.  In addition to requiring better pet hygiene, removing the carpet in the upper unit and replacing it with vinyl plank flooring would help since it is a lot easier to clean and won't retain the odor as readily however the carpet likely helps to dampen some of the sound from the upper unit.  That said I would still opt for the vinyl flooring.

    This is the sort of problem you should deal as soon as you close. You don't want to give the impression that you are ok with it by waiting.  

    • Member since 2025 · 9 posts · 12 votes
      9mo
      Quote from @Leroy K. Williams:

      My advice would be to show the vacant unit to others and have them fill out a questionnaire regarding the unit. If enough people mention the odor and have concerns about the tidiness of the dwelling you should share their concerns with the existing tenant and use this objective feedback to drive the point home. It is unacceptable.  

      Cat dander can definitely travel through ducts and there are many people with extreme cat allergies so I would also raise this as a concern.  In addition to requiring better pet hygiene, removing the carpet in the upper unit and replacing it with vinyl plank flooring would help since it is a lot easier to clean and won't retain the odor as readily however the carpet likely helps to dampen some of the sound from the upper unit.  That said I would still opt for the vinyl flooring.

      This is the sort of problem you should deal as soon as you close. You don't want to give the impression that you are ok with it by waiting.  



      Thanks for the advice. Given the lease expires a month after I expect to close, I will be dealing with this in the near future. Assuming the tenant has paid rent on time over the last year they’ve occupied the property, is it common practice to still require a lease application? I clearly would require the tenants to sign my lease, but my instinct says if they already have paid on time I wouldn’t require a formal application and background check.
  • Bo SmithPro Member
    Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
    8mo

    Congrats on the first multifamily! One approach that's worked for me: frame everything as "property maintenance" rather than tenant issues. Schedule HVAC cleaning/inspection first, let the tech naturally point out air quality concerns. Then offer carpet removal as an "upgrade" you're doing building-wide. Most tenants actually appreciate nicer finishes. Have you considered what timeline works for both the renovations and keeping good tenants happy?

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