Buying properties with tenants in place and tenant request

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Buying properties with tenants in place and tenant request

Zack WhitingPro Member
Member since 2023 · 14 posts · 15 votes

I just bought a house that had a tenant in place that has been there for 26 years. She was only paying 500 a month with no written lease (market rent is about 1200). I tried to be as reasonable as I could. I used binder method to raise rent and we came up with 800 a month and I gave her 90 days to decide weather she could find somewhere cheaper or if she would like to stay. But now she is saying since she is paying 800 she would like all new floors, paint the whole house, new vanity, new water heater because she can't take long showers. How do I deal with this? It hasn't been done the whole time she has been living there. So I think it's warranted but here is problem number two she is a hoarder. 
? #1: Do I do all the repairs she is requesting?

?#2: how do I navigate re doing it with all her stuff in the house?

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  • Patrick O'SullivanBusiness Member
    Property Manager · Phoenix, AZ · Member since 2024 · 525 posts · 197 votes
    7mo

    Congrats on the new property, @Zack Whiting. That is definitely a tricky situation. A 26-year tenant is rare.

    #1 Make a list of items that are essential repairs versus cosmetic requests. Address the essentials, then the rest is optional. You are not obligated to do cosmetic upgrades like new floors or paint just because rent went up. As long as the home is safe and habitable, you are meeting your responsibilities. Anything that is a real safety or maintenance issue should obviously be fixed. Acknowledge her requests, but make it clear what is actually required.

    #2 With a hoarder tenant, documenting the home and planning repairs in stages is key. You can politely require her to clear areas for work, and it is okay to set boundaries on what you will and will not do. Take photos of all rooms before starting any work. This protects you if there’s later damage or claims.

    A formal lease with clear rules about maintenance and access will save headaches. Being firm but respectful goes a long way.

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  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    7mo

    @Zack Whiting, a few thoughts:

    1. Was $1200 based on the units current condition as it sat or based on having to upgrade things like flooring and do an entire repaint? 

    It really doesn't matter for the decision making here but when you do anything always be honest with yourself. It helps immensely with the decision making. 

    2. At MOST if there was 1 room that was really terrible and easier to replace like the kitchen or living room, I might upgrade the flooring in that one room and maybe paint as well in that one room. That is at MOST and likely I would not even do that. 

    3. I would ask if this means that they plan to move. I would explain that it makes a lot more sense to do a significant rehab when the unit is vacant and then rent it back out at a full $1200 or MORE! 

    4. Keep in mind YOU are being SUPER reasonable here allowing her to maintain stable affordable housing. You would likely be better off if she left. 

    I might even tell her that relatively plainly if she persists. 

    5. In the end let her go if she isn't happy. Never be afraid of your tenant leaving. 

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