San Diego, CA · Member since 2019 · 8 posts · 1 vote
Recently bought a duplex and the previous owner was supposed to have moved out by now and into an assisted living facility. However, he broke his arm during the move and has to get surgery. When move out day came, he requested to stay and pay market rent for 3 months until he heals. I did not agree and basically sent an addendum to get out within 2 weeks. They came back asking once again to stay in the house. Any tips here? Should I move forward with evection notice?
Depending on the area, an eviction may take more than 3 months. Best option is probably to do a 3 month lease at market rent. Include a clause that holdover tenancy rent rate is 1.5X prior monthly rent.
Sounds like he has nothing to lose with an eviction on his credit, so tread lightly.
If you think he will pay rent, I would say just do the Market rent. Will give you time to find another tenant. Evictions can take time and by the time you get approval it may be three months down the line.
If you haven't closed, why not let him stay for 3 months at market rent AND have the attorney handling your closing hold back a large chunk of money until he is out.
I think you have a chance to get them out without caving. If you don't think they will go, you may be better off dealing with this than evicting, unfortunately.
If you make an offer to accommodate, charge market rent plus a premium right from the get go and put it in writing this accommodation is temporary, burdensome and only because you are bending over backward. Maybe have a lawyer send.
Market rent in this context=no reason to hurry up and he has all the cash in the world right now. I would suggest 1.5 the market then double that after 3 months. Get the signature. Bet he moves upon receipt.
Also, what you stated doesn't hang together...he wants to delay moving to assisted living till his arm heals? Life would be easier with a broken arm in assisted living. I think you are dealing with understandable fear of change and sellers remorse. And assisted living places don't hold spots forever....
Post closing occupancy agreements/seller's staying a while after closing have been very common in hot markets lately. I would let him stay but get a lease in place and collect a security deposit like a normal tenant. He's probably good for the rent considering he'll have the proceeds from the sale.
Hi Grayson. I know this isn't helpful to your immediate situation, but in case you face a similar scenario in a future property - I bought a house where the owner needed to stay for a while after closing. A realtor friend of mine told me to add an addendum to the contract specifying a move out date with a daily penalty charge for every day she stayed over - this incentivizes a quick move. We made the daily penalty the equivalent of pro-rated market rent. The former owner ended up moving out prior to the agreed upon date. Good luck with your current situation- I see you are getting tons of great advice!
I've also done something similar with one place I bought. The seller needed the money from the sale to buy her new place. The market was hot and places were selling fast. She paid market rent and was out when she said she'd be.
Just an update here, I was able to get him to agree to move out by tomorrow, and everything ended amicably. Thanks everyone for the advice though! @Patricia Taveras definitely a good idea for next time, and I learned my lesson about closing before confirming the owner moved out.
@Maurice D. Property manager went over to the property and talked with the owner to see what was going on and gave him a list of movers that could possibly help. Don't know the specifics of the conversation, but property manager handled it all thankfully. No bribe necessary