Use Property Management or Give Notice to Vacate Myself
Member since 2020 · 2 posts · 0 votes
Use Property Management or Give Notice to Vacate Myself
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4yQuote from @Mike Weston:
Hello, we are closing on a duplex very soon and there is a tenant in one side that we would like to give notice to vacate to. They are month to month so we can give a 30 day notice. They also have done significant damage to the unit and we are eager to get in there to start the repairs. There is currently a property management company managing but we have asked to terminate that at closing. We have been considering if we should retain the PM and have them deal with getting the tenants out or if we should just give notice ourselves. We recently purchased a LegalShield membership in case we need to get a lawyer involved or need any consultation. This is our first property so we are noobs. We are looking for advice with help deciding if we should get the experience of dealing with these types of things or if we should just let the property management company do it. Thanks in advance for any insight on this.
My #1 recommendation would be for the Seller and current owner to vacate the unit prior to closing. This saves you the cost/headache and gives you a fresh start. If you could get it empty a week prior to closing, that would give you the opportunity to inspect and start planning for renovations on Day 1.
If it's too late for that, then I recommend you cut the PM loose and handle it yourself.
The DIY Landlord Book4.7248 Reviews
6 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes4y
Quote from @Mike Weston:
Hello, we are closing on a duplex very soon and there is a tenant in one side that we would like to give notice to vacate to. They are month to month so we can give a 30 day notice. They also have done significant damage to the unit and we are eager to get in there to start the repairs. There is currently a property management company managing but we have asked to terminate that at closing. We have been considering if we should retain the PM and have them deal with getting the tenants out or if we should just give notice ourselves. We recently purchased a LegalShield membership in case we need to get a lawyer involved or need any consultation. This is our first property so we are noobs. We are looking for advice with help deciding if we should get the experience of dealing with these types of things or if we should just let the property management company do it. Thanks in advance for any insight on this.My #1 recommendation would be for the Seller and current owner to vacate the unit prior to closing. This saves you the cost/headache and gives you a fresh start. If you could get it empty a week prior to closing, that would give you the opportunity to inspect and start planning for renovations on Day 1.
If it's too late for that, then I recommend you cut the PM loose and handle it yourself.
The DIY Landlord Book4.7248 Reviews - Investor · Tempe, AZ · Member since 2018 · 1k+ posts · 731 votes4y
@Mike Weston, Nathan is spot on; as per usj.
Currently, the damage risk burden is on the current owner and PM. As soon as you transfer ownership, that burden becomes yours. You're better delaying closing to give the owner/manager enough time to remove the tenants and handle everything.
If you take over ownership with tenants occupying, you must honor the previous lease. You'll have to transfer security deposits, reports, etc. which can be an annoyance. If there's any disputes on damages, that is best dealt with the current manager since they knew the condition of the property at move-in.
Or, you let the current manager close out and put an end to that chapter.
- Member since 2020 · 2 posts · 0 votes4y
Quote from @Nathan Gesner:
Quote from @Mike Weston:
Hello, we are closing on a duplex very soon and there is a tenant in one side that we would like to give notice to vacate to. They are month to month so we can give a 30 day notice. They also have done significant damage to the unit and we are eager to get in there to start the repairs. There is currently a property management company managing but we have asked to terminate that at closing. We have been considering if we should retain the PM and have them deal with getting the tenants out or if we should just give notice ourselves. We recently purchased a LegalShield membership in case we need to get a lawyer involved or need any consultation. This is our first property so we are noobs. We are looking for advice with help deciding if we should get the experience of dealing with these types of things or if we should just let the property management company do it. Thanks in advance for any insight on this.My #1 recommendation would be for the Seller and current owner to vacate the unit prior to closing. This saves you the cost/headache and gives you a fresh start. If you could get it empty a week prior to closing, that would give you the opportunity to inspect and start planning for renovations on Day 1.
If it's too late for that, then I recommend you cut the PM loose and handle it yourself.
Thanks for quick response and recommendation. It is probably too late to have the seller and current owner to vacate since we are closing in the next week or two. We considered doing that in the beginning but we were hesitant because the bank was including the current rent in our DTI and we didn't want to cause any issues with qualifying. Hopefully all will go well but this whole process has definitely been a serious learning experience!
- 4yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Agree that it would have been better getting rid of this tenant before closing. Recommend you add it to your offer on the next purchase - if warranted.
Don't agree with just firing the current PMC and handling yourself.
If the tenant is trashing the property, the current PMC may not be doing their job, but we don't know what the seller has authorized the PMC to do. We've had "battles" with owners trying to get them to follow our advice, but them not wanting to spend the money or trying to be too considerate of the tenants. Rarely works out for the owner, but NOT our fault.
Suggest you call the PMC and find out why they've let the tenant trash the property. At this point, they know the tenant better than the seller or you. So, that relationship might be useful in getting the tenant to move out upon notice being served.
What you want to avoid is firing the PMC, you serving the notice expecting the tenant to comply, but instead they stop paying rent and start causing more damage and you have to go through a possible lengthly & costly eviction.
Logical Property Management4.9458 Reviews - 4yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
I agree with Nathan. Have the property delivery vacant. Make sure you walk the house before your close to ensure they are actually out. For the PM this also ends their contract with the previous owner and makes for a cleaner transition.
It sounds like it is too late for that, have the current PM give them notice to leave. They also have the tenants deposit, so make sure they do the inspection and YOU get the deposit for the damages. Make sure you specifically mention that to the PM.
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