Eviction notice sent out on Day 3 of tenancy... oy vey

[James W.]

Howdy BP! I'm hoping to get some feedback before I make a mess out of an already sticky situation.

Here's the deal: On a duplex I recently purchased, the upper unit was vacated before I took possession. Cool, because the carpet and paint hadn't been replaced in at least the last 5 tenants, or 15 years, or longer. The stove and fridge were so bad I just threw them out and got replacements. I redid the entire floor, painted, and made the place actually livable!

With all that said, the place is by no means "nice". It's small, I wasn't able to get it professionally cleaned, and the bathroom needs updating. But for $450/month with heat included, I'm not going to turn it into the Taj Mahal (at least not until I've turned some profit on it!)

Now for the tenant. Here's the timeline:

08/25 application & walk through. Male tenant looks HORRIBLE on paper - at least $14,000 in judgments, minor criminal, etc. Needs a place of his own to help with a custody situation. Female has a restraining order against her, violated the restraining order, but nothing else serious. I decide to rent to them.
08/26 signed lease in office - did not bring funds 08/27 no show - no deposit
08/28 paid $350 cash
08/31 rec'd call from Assistance that they may assist with $250 toward SD - did not mention that they would need additional assistance. 09/01 no show - no payment
09/02 paid $100 cash; said St. Vincent was assist with $200 toward SD 09/02 - took possession of unit, with the understanding that the deposit would be funded promptly.

09/03 rec'd $200 check from St. Vincent (did not cash)

09/04 Still haven't received full security deposit.

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Ok, now here's where it gets interesting. My first question should be simple enough:

By giving them the keys, am I obligated to wait for the security deposit? Or can I send a 14 day notice immediately with no right to cure?

The female has expressed that the place now does not meet her requirements, and in fact called the building inspector because she believes it is not in livable condition. The male informed me that he believes he has legal rights to stay in the apartment. On the August 26 date, the female walked in my office and helped herself to a cup of coffee out of my Keurig without even asking. (I wasn't present, and when I heard about it I immediately thought I should get out... lesson learned, trust the gut!)

I have already sent a 14 day notice, and I informed them that I will return all the money they paid as soon as they are out, because I know they need it. 

Comments appreciated. Happy investing! :D

[Dawn Anastasi]

What made you decide to rent to these people when they have a horrible, horrible history?  Secondly, your statement of "I wasn't able to get it professionally cleaned" doesn't cut it.  If you're unwilling to provide a clean, safe place to live, then don't start accepting applications until you do.  Would you live there in the condition that it was when you rented it to these people?  It doesn't have to be the "Taj Mahal".  But provide the basics -- water, heat, working electricity and lights, no safety hazards, proper safety equipment (smoke detectors and carbon monoxide detectors), make sure windows and doors all lock and door jambs are secure and the place is clean -- no previous construction debris, no previous tenant debris, no bugs/critters.

Then there's the matter of the rent and security deposit.  Get your security deposit and first month's rent up front and in advance before renting the unit.

Scenario: Tenant shows up to the lease signing and says "I don't have the money with me today."

You: "Okay, well when would you like to reschedule the lease signing?  I can give you X days to reschedule and then I'm going to put the unit back on the market."  Then stick to it.

If you rent to lower income tenants, month-to-month rental agreements are far better for the landlord than annual leases.  Gives you the upper hand.

There are some tenants out there who will try to play you.  Their grandmother died and they had to travel out of town so they couldn't pay rent.  They got robbed and their rent money was stolen. They'll give you the rent in just 2 days.  Then 2 days go by and they just need another 3 days.  Then they need another 4 days.  Suddenly over a week has gone by and you haven't filed for eviction yet because you think that payment is just around the corner.  The 5-day notice starts right away.