Help/Advice for New Landlord - Potential Eviction Situation

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Help/Advice for New Landlord - Potential Eviction Situation

Brian Siedenburg
New to Real Estate · Greensboro, NC · Member since 2024 · 12 posts · 22 votes

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. 

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
10mo

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.

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  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    10mo

    @Brian Siedenburg He seems like a nice tenant so I'd explore options to add an addendum to the current lease. The other person should go through the screening process before that happens. That means rental application, screening, background check, and a lease addendum outlining the new terms. Make that clear with the current tenant. 

    It's a qualified life line otherwise what's the point? Adding unqualified person to the lease would only makes things worse. 

    1Reply
  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    10mo

    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.

    2Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    10mo

    @Brian Siedenburg the hard part of this they can be upfront and good people but still not be able to pay the rent. I would first be sure who he is proposing is qualified and the house isn't already overcrowded.  My conversation would go like this I would ask him if this is a temporary or permanent move in (this kind of is a way of finding out if he anticipates getting better without asking which you can't really ask about disabilities). I would let him know any resources I know of that might help. I would only agree to another qualified tenant with an amendment to the lease.  Lastly I would let him know that you will serve all notices leading up to an eviction if rent is not received.  Inform him you both would probably prefer an agreed move out plan if it comes to that but need to provide the required legal notices.   I would also research if you can evict with kids in winter in your state. 

    I did have long term tenants like this and sent them a whole list of VA and age related help which they never applied for so you can point them toward community resources but people will do what they will do.

    1Reply
  • Brian Siedenburg
    OP
    New to Real Estate · Greensboro, NC · Member since 2024 · 12 posts · 22 votes
    10mo

    Thanks to everyone who replied! Great input. Would love if anyone else has any input or opinion as well, thank you!

    1Reply
  • Janice Carter
    Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 606 votes
    10mo

    Brian, this is definitely a tough situation, especially when you are a small landlord with limited reserves. The good news is, your tenant is being honest and proactive.

    If you are open to keeping them, there is nothing illegal about redoing the lease. You can terminate the current lease by mutual agreement and issue a brand-new one that includes the additional adult as long as the new person is fully screened (credit, background, income, rental history, employment, etc.). A month-to-month lease is a smart approach because it gives you flexibility if things don’t stabilize.

    However, if the new applicant does not meet your criteria or seems risky, then a mutual termination or eviction is the safer route. With only $15k in reserves, you cannot afford months of unpaid rent or a costly turnover if things spiral.

    A balanced way to approach it would be:

    1. Screen the new person thoroughly.
      Treat them like any other applicant, no exceptions.
    2. Switch to month-to-month.
      It gives you control without locking you into another long-term commitment.
    3. Get everything in writing.
      A mutually signed termination of the old lease and a new M2M agreement.
    4. Have a plan B.
      If they cannot qualify, it is better to give notice to vacate. Hopefully, you don't have to evict.

    Being compassionate is great but you also have to protect yourself. If the new tenant can stabilize the household and meet the standards, it is worth trying. If not, it is better to end things now before the financial burden becomes overwhelming.

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