Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
Good evening all, I own a property in Cincinnati that is zoned as Mixed use. This means that upstairs can be residential but downstairs should be commercial. The property managers & I know this and they found a tenant who was looking to set up a childcare business at the property. After 6 months of a 12 month lease the person decides to give a 30 day notice with the excuse that the building department says it was last known as residential and would need zoning hearings which could take 4 months with no guarantee.
I am looking for some feedback on this one or suggestions on what I can or should do? This seems like someone is trying to get one by me because I am out-of-state.
Rental Property Investor · Birmingham, AL · Member since 2015 · 11 posts · 2 votes
10y
Our leases state the tenant is responsible for verifying the zoning. Having said that, people are going to do what they are going to do regardless what a piece of paper says. My experience has been to try to settle a buyout agreement while simultaneously try to re-rent the space. By the time you pay a lawyer you could have spent that time and energy finding a new tenant.
Investor · Jonesboro, AR · Member since 2015 · 241 posts · 132 votes
10y
It's been my experience that chasing someone for a broken lease, is an expensive and time exhausting practice. I currently have a tenant that is breaking a 12 month lease and I'm happy to let him. He was always late in paying and I had to deal with his scrutiny. If you choose to take it to court and you win, you'll still have trouble collecting. In the end it is still a free country and we don't have a debtors prison. I think it's best to spend my time and energy finding new tenants instead of chasing old deadbeat ones. Not saying my approach is the best, just sharing my experience.
Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
10y
It sounds like you need to contact the county and ensure that it can be used as a daycare given its current zoning. Aside from time zones, it shouldn't be difficult to get that answer. If it is being used correctly you need to have a chat with that tenant and let them know that they are breaking a valid lease and you'll follow whatever your State/lease says about lease break.
Where at in AE? I just moved back from England last year.
Santa Rosa, CA · Member since 2015 · 191 posts · 75 votes
10y
If it takes up to 4 months for zoning hearings then why even leave right now? She at least has 4 more months on that lease, and it will reduce the lease break to only 2 months.
Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
10y
Thanks all. Currently stationed in England which makes it harder. I agree the property manager should be handling this and I dont plan on renewing with them after this. Property is mixed use and the Building Department is telling the tenant that their records has it as residential. Sounds like a mix up within the city. I am getting a copy of the letter from the tenant tonight and going to call tomorrow to see if I can straighten this out. Hoping 1 of 2 things will happen...they allow her to use property for childcare or they qualify it as residential. Either way I can rent it easy. If they say that it is mixed use but she cant use it for childcare & she has to do a zoning hearing for Commercial then it will take 2-4 months for that decision, costs $$ & no guarantee they will allow it.
Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
10y
Still working the issue but usage for "Child Care Center" is "Permitted" with the current zoning of the property. So waiting on response from Property Manager & Tenant.
Rental Property Investor · Birmingham, AL · Member since 2015 · 11 posts · 2 votes
10y
Our leases state the tenant is responsible for verifying the zoning. Having said that, people are going to do what they are going to do regardless what a piece of paper says. My experience has been to try to settle a buyout agreement while simultaneously try to re-rent the space. By the time you pay a lawyer you could have spent that time and energy finding a new tenant.