Help/Advice for New Landlord - Potential Eviction Situation

[Brian Siedenburg]

Hello all!

For context I am in Greensboro, NC. Small time landlord, just have one LTR right now. 

I have 2 tenants with kids in my LTR (3br 2ba). A while back, the main breadwinner lost his job as an HVAC tech and decided to start his own HVAC business. It was going well until his partner simultaneously screwed him over and ran off with 5 figures in equipment, and my tenant also severed a nerve in his left arm so he can't do the work anymore. He didn't keep very good books so apparently he doesn't qualify for disability. 

The good thing is that he has been very forthcoming and communicative throughout this entire process and has not tried to dodge me at all, in fact he always reaches out first and is very transparent. 

Main Q: He asked if we could re-do the lease and bring in another person to help pay the rent. Im uncertain around the legalities here of breaking a lease and re-doing it. If I was going to re-do the lease, I would probably do it month-to-month. The other choice would be an eviction which he is well aware of. 

Personally - As a small time landlord with a very modest income (65-70k/year from all sources) the expenses in this situation scare me a bit. I just have about 15k of cash reserves but it does take a long time and a lot of frugality (which im used to) to build that on my income. 

For those more experienced - What would you do in this situation? Try to re-do the lease with an additional tenant to help them pay the rent and make it month-to-month? Or go forward with the eviction?

Thanks a bunch. This situation is stressing me out a good bit. 

[Greg Scott]

Lots to unpack.

I love residents like this.  They sound honest and want to do the right thing. Unfortunately, bad things happen to good people.  These are the kind of people that I want to help.  There are too many that try to find ways to weasel out of paying rent.

I would start by seeking outside help.  Often times there are charitable or government organizations that will pay rent for a month or two to help people get on their feet.  

Yes, you can modify or terminate any lease if it is mutually agreed.  However, your situation has some details you should consider. First, I'd check your local and state laws.  Six people in a 3BR does not make the unit over-occupied.  However, in some states it is illegal to have a boy and girl room together, although rarely enforced.  If you modify the lease to add this other person, everyone should know they are both jointly and severably liable. In other words, they all owe all the rent and if you have to evict, all will be evicted.

If he is NEVER going to be able to work again, it makes no sense for him to stay in your place long-term.  Eventually, he won't be able to pay and you will have to evict.  With a resident like this, we would do what we can to help get them to a better place. We have waived lease termination fees and let them out of their lease if they find another place that is cheaper for them.