Inherited Renter Issues in Low Income Neighborhood!

Inherited Renter Issues in Low Income Neighborhood!

Investor · Columbus, OH · Member since 2014 · 63 posts · 14 votes
Need some major help here! My husband and I closed on our duplex mid-August. One side is empty (we'll call it side #1, which we are currently rehabbing), and the other side, side #2, had tenants in it but they are in progress of moving out. We were planning on starting work to the other side this week. Here's where it gets interesting. We were working on side #1 of the house earlier today, and a guy came up to the back door. (Background: We had previously met this guy last week, and he introduced himself as a plumber who the side #2 tenants called because their water had been shut off due to a pipe issue on side #1 (we have one meter). At the time, we explained to him that WE were the landlords, not the tenants on side #2. In any event this plumber came in and quickly fixed the water issue and discussed what he would charge for all of the plumbing updating we needed in our house. We were going to be in touch. He seemed like a nice, knowledgeable guy. End background) So this guy comes back and he says "I don't know if you know this, but me and my two girlfriends (yes, he has 2) had paid $300 to rent a room in the side #1 tenants' side for a month. Your tenant posted a craigslist add for one of the bedrooms and we paid your tenant $300 on Aug. 28. We've been there for a week, and now he's telling us we need to leave and isn't trying to offer any kind of a refund. We wanted to talk to you to see if there's anything we can work out. We'd be willing to do any work you need help with - I know plumbing, we can tear up the old carpet - etc free of charge if you'll just let us stay for a little longer. I need to go to Detroit for the week for work and I just can't let my girls out on the street and paying 250-300 for a hotel isn't an option right now..." We were totally shocked and had a "wtf" moment. We have no idea any of this was going on. We feel like our tenants really screwed us- they had been SO nice and cooperative to our face this whole time and never mentioned a thing about this arrangement. As a matter of fact, the wife said they guy was her uncle! We clearly know that's not true. We don't know what to do. On the one hand, it would be nice to have some free plumbing. On the other hand, we have no idea who these people are. And we didn't choose them! Keep in mind this is a low income neighborhood, and on our block, from what we can tell there are lots of characters. Also, a week after we moved in someone firebombed an apartment across the street after being evicted. Apparently he wanted to get back at the landlord. So all things considered, what do we do?! What's the best way to handle this situation?
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Michele FischerPro Member
Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
12y

So the tenants are telling the plumber that they need to leave early because that is when they are moving out?  Does your rental agreement forbid subletting?  If it does, I would compassionately tell his that they took his money and made an agreement that is against the rental agreement  so you cannot honor it.  If he has the necessary move in money, he is welcome to apply to become a tenant; you can decide what you would need/want for a short term or long term arrangement, since neither unit may be move in ready yet (reduced rent until the unit is complete, flexibility to get in and get it complete, etc), but you'd want new paperwork with him and the girlfriends, and a chance to check them out.  I would not trade any work for rent, ever ever.  We did it once with a professional painter and made out fine, but painting is way less risky than plumbing, and I have heard so many horror stories about workmanship not being satisfactory.  Good luck, and welcome to low income landlording, every day is a new adventure.  

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  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    So the tenants are telling the plumber that they need to leave early because that is when they are moving out?  Does your rental agreement forbid subletting?  If it does, I would compassionately tell his that they took his money and made an agreement that is against the rental agreement  so you cannot honor it.  If he has the necessary move in money, he is welcome to apply to become a tenant; you can decide what you would need/want for a short term or long term arrangement, since neither unit may be move in ready yet (reduced rent until the unit is complete, flexibility to get in and get it complete, etc), but you'd want new paperwork with him and the girlfriends, and a chance to check them out.  I would not trade any work for rent, ever ever.  We did it once with a professional painter and made out fine, but painting is way less risky than plumbing, and I have heard so many horror stories about workmanship not being satisfactory.  Good luck, and welcome to low income landlording, every day is a new adventure.  

  • Real Estate Investor · Lansdowne, PA · Member since 2013 · 1k+ posts · 656 votes
    12y

    wait...what?!

    Kudos,

    Mary

  • Investor · Columbus, OH · Member since 2014 · 63 posts · 14 votes
    12y
    Michelle- Thanks for your response! Yes, that's pretty much what happened. The lease stated that there was one family living in the house and any additional people would be a $50 per person per month charge. So the tenants definitely broke the lease, but it's not like we can do anything about that now... I agree with the bartering thing... Maybe some demo work, something that doesn't have such a big impact on the quality of our new house. Also, good point about getting something in writing. This whole thing has just caught us off guard.
  • Investor · Columbus, OH · Member since 2014 · 63 posts · 14 votes
    12y
    Mary - haha I know, is this real life?! My husband just talked to one of the girls about leaving and reassessing the situation tomorrow... Her plumber bf is already gone for the week. Apparently they have NO money, no family no friends. She said they could just sleep in their car, so we would pretty much be putting them out on the street. Ugh!
  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    We have made several of our tenants homeless, sometimes you just have to let them deal with the consequences of their poor decisions.  The fact that they have no support system says a lot.  I have a lot of passion for trying to help the poor, and we would probably allow them to stay if it isn't stopping you from your original plans, and deal with it as soon as the boyfriend comes back, but always step back and realize that they could be taking you for a ride, that they can live in a car for a week, and that you need to trust your head and your gut.

  • Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
    12y

    So #2 tenants were trying to rent out #1?  This is not subletting and has nothing to do with the lease.  If your tenants stole money from someone would you reimburse the victim?  It sounds like that's what happened here.

    If you want to be nice, you can tell them that you will supply leases & deeds if they want to take #1 to small claims court.

    I also have bridge to sell....

  • Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
    12y

    It's going to be in your best interest to work something out to get them to move out willingly.  If they're living there, even if they don't have a lease and you didn't allow it, you're probably going to have to evict them which will cost you more money and take more time.  Any payment should be contingent on every resident and all property being removed from the unit and it being left in broom swept condition.    


    Do not let the nearly homeless unlicensed plumber do any work on your property.

  • Real Estate Investor · Madison Heights, MI · Member since 2014 · 693 posts · 216 votes
    11y

    offer them 200 to leave.

    Tell them its to help them out for a bit.  But get them out

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    11y

    I agree with @Scott K. if you try and be nice and please everyone this will drag out for months.  Pay them to leave, renovate the units, and place your own tenants.

  • Flipper/Rehabber · Baton Rouge, LA · Member since 2014 · 26 posts · 15 votes
    11y

    I know I'm a little late to the conversation however let me chime in. ( hopefully, this issue is resolved by now and maybe you can update us as to how it turned out for you and what worked or didn't work) i have a similar situation. Honestly almost all the land lording nightmares i've heard of have come from 'inherited' tenants. in my case a property manager was telling the owner ( long distance ) that there were no tenants and yet he was renting the place to some folks through a federal program. we found that out later. but the program had ended and rent was due and they had none to pay. plus they were rowdy!!

    needless to say we just decided to evict them. no cash for keys but an eviction. it cost more money and time but it sent a message which i think is important.  they ended up trying to move before the city marshall came to kick them out.

    hope it all worked out well for you. 

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