Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

9
Posts
2
Votes
Benny Cash
  • New to Real Estate
  • MA
2
Votes |
9
Posts

Inherited a rental property with non-paying tenants

Benny Cash
  • New to Real Estate
  • MA
Posted

Hi all, Looking for tips on how to handle a situation in which a mixed-use property was inherited with three non-paying tenants who had been given permission by the now-deceased owner to occupy the property without paying rent.  The story goes that tenants were down on their luck and couldn't make their rent, so the owner allowed them to stay until they could get back on their feet.  The property has been neglected and is in now complete disrepair, likely in teardown condition, and is an enormous tax burden on the beneficiary who inherited the property (significant back-taxes owed, high annual property taxes, etc).  What is the cleanest way to remove the tenants at this point, given that they had received prior permission from the deceased owner to stay, so that the property can be cleaned up and sold?  Is it just a matter of knocking on the door and notifying the tenants that circumstances have changed?  Or is it better to find a more "hands off" approach?  Thanks for any thoughts!

  • Benny Cash
  • Most Popular Reply

    User Stats

    28,238
    Posts
    41,448
    Votes
    Nathan Gesner
    • Real Estate Broker
    • Cody, WY
    41,448
    Votes |
    28,238
    Posts
    Nathan Gesner
    • Real Estate Broker
    • Cody, WY
    ModeratorReplied

    Even if they were told they could live rent free, it's considered a verbal lease agreement which defaults to month-to-month. You can give them 30 days notice to vacate. If they refuse, you'll have to start the eviction process.

    Since they are living there for free, there's no incentive for them to leave. You may consider paying them to get out. If you do that, don't pay until they're out and the locks are changed so they can't get back in.

    • Nathan Gesner
    business profile image
    The DIY Landlord Book
    4.7 stars
    191 Reviews

    Loading replies...