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Help!! I've inherited a bad tenant!!
Hey BP,
I need some help. I just closed on my first property at the beginning of this month. It's a duplex that I bought in a partnership with my parents. My parents put up the capital but have said they want no part in the management side, I am fine with that. However I now have an issue with the tenant that stayed with the property. Here is a little background about the place and tenant. The tenant had lived in the 3/1 unit of this duplex for the last thirteen years when she moved in the property was being taken care of and managed by the previous owners husband. He passed away 5 or 6 years ago and his wife hired a broker to manage the property. The lease had been a verbal contact for most of the time. The landlord couldn't find an original lease from when the tenant moved in. And the last lease she signed was a year ago.
She is on a month to month lease and after the offer was accepted I was informed that she has been paying late for quite sometime. Her rent is due on the first with a grace period up to the seventh. She normally pays her rent on the tenth with a note saying do not cash until the twenty seventh.
I knew that it was going to be an interesting process to get her to pay on time. But I have not been able to speak with there tenant. I dropped off a letter to days before closing to introduce myself as the new landlord, let her know rent is going up, and to give her the new contact number. A week later she had not paid her rent so I sent her another letter saying your rent is late and per the lease the late fee is x amount. I had not heard from her I stopped over to the house a few times to speak with her and never saw her.
She still has not paid rent and when I was at the property doing some maintenance on the exterior a car pulled up saw me working and drove away. I came back a few hours later, the same car was parked out front and the lights inside where on. I could see the tenant inside the house. But she would not answer the door or move from where she was sitting by the window to come speak with me. I was hoping she would grumble about the rent increase and being held accountable to the due date. And i would have a few months with a tenant so I could renovate the basement but still have some income.
Is there something else I can try before I serve her a the day notice to quit?
Where is your property? Different states have different laws as far as how long an eviction process takes. You should serve the 3-day notice to quit immediately, if legally able. If the tenant refuses to communicate then there isn't anything else you can do short of hiding out all day in a ghillie suit trying to sneak attack.
That being said you could include a way in the 3-day notice to quit that provides a solution to the problem, or include a statement that indicates you wish to resolve this without an eviction. But if the tenant refuses to talk than they have forced your hand.
Also, I'm not a lawyer!
From what I've heard on the forums people only regret not serving a 3 day notice sooner; I don't think anyone has ever posted that they wish they hadn't served one. I'd serve the notice, find an eviction attorney, and continue with your plans. Just assume you won't get any more rent from her, and if things work out it'll be a pleasant surprise.
Not legal advice, just thoughts from a fellow new landlord.
the property is in Mitchell south Dakota. I had spoken with a lawyer last week to make sure the lease I had was completely legal in South Dakota.
You have fairly simple options.
1. You can do nothing and hope that she pays the rent and late fees This is going to be unlikely since it appears from your posting she's doing her best to avoid you. This is typically what deadbeat tenants do. The idea from these folks is that if you can't catch them they don't owe you.
2. You can begin the process of eviction (RECOMMENDED). Tear off the bandage and be done with it. Serve the 3 day Pay or Quit notice in the required form as per your state (some states require this as a "tack and mail" approach so the tenant cannot come back and claim they were never served). If she does not "quit" (move out) within this time period (unlikely) or pay (even more unlikely) march on down to your Clerk of Court office and file the appropriate forms to initiate the eviction process (often the steps to do this will be online for your county; sometimes the required forms may also be available for you to print out).
Look; new landlords (and not a few experienced ones) generally hate and/or sometimes fear the eviction route. But a tenant who deliberately refuses to talk to you about the matter of owed rent is typically one who isn't planning on paying rent and is simply trying to buy as much time as they can to remain in the rental unit for free.
Gail
She's testing you. It's a business so keep it professional. You have your attorney, go forward with the eviction now. Lots of posts on BP how to rehab the property and screen the next tenant. Good luck.
I agree with what's been said and honestly she seems so sketchy that I would NOT accept rent, just move forward with the eviction especially if she's M2M, give her a 30 day notice or whatever notice your state uses and get her out. She has already proven she doesn't want to work with you, the fastest way to get your property stabilized with higher rents will be to get her out and a new much better tenant in. Good luck. Keep us updated.
She sent me a text today saying she would like to stay, depending on what the rent is. I would prefer to get her out and put a new tenant in but both units need some updating and I wasn't planning on having an empty building while I was fixing up each unit.
my partners also are telling me to get her to stay and pay rent unit the basement is re rented before we give her a notice or evict.
Kaleb Carsten
To date, you have been paying for someone to live in your property. If you consider that profitable, carry on.
Speaking form my experience and I am not an attorney.
1) Some tenants will trash the property when they know you are throwing them out (through eviction process). It is better to renovate your property once the bad tenant is out and get new one. You might waste all the renovation dollar then you have whole lot of another issue to deal with.
2) First see if you can pay her the half of the amount that will cost you to evict her. Let her know you have to renovate your property and you want her out. And for her trouble you will pay her to find another place. This will avoid her taking a revenge on your by destroying your property before she takes off.
Again I am not a Lawyer! Please check with your attorney first.
Get rid of her. Inform her you won't be renewing your mom lease and get her out.
There's no fixing that.
I know nothing.
Don't forget about the cash for keys option.
She wants to stay "depending on the rent", immediately tell her what the rent will be come Nov 1. Also, tell her that she needs to pay current rent and late fees now. Start the eviction process ASAP, on Monday.
Chances are she can't pay the current rent and the late fees now.
Offer her cash for keys to avoid eviction, because no one wants that. She'll probably take it and be gone by next weekend.
Is there a form or agreeable terms for vacancy form you get signed to make a "cash for keys" deal legit? Probly don't actually use cash lol maybe a check
@kaleb carsten, stop wasting any more time with this tenant. Hire an experienced landlord attorney and start the eviction process now. This tenant knows what she is doing and may already have an eviction history. She is likely to hold out until the sheriff shows her the door. Let this be a wake up call to you on your next purchase with an inherited tenant. Always verify what an owner and realtor say about the tenant you inherit by requesting payment history, leases, utility bills before you close the deal. If they hesitate to provide you this, assume the worst and budget to get the tenant out or use this as a bargaining chip to negotiate down the purchase price.
For the record, even tenants with good payment records will test you when you become their landlord. Have a system in place to enforce rules immediately and start learning the landlord tenant laws in your state.
Good luck!
"She sent me a text today saying she would like to stay, depending on what the rent is."
"A week later she had not paid her rent so I sent her another letter saying your rent is late and per the lease the late fee is x amount. "
She knows what the rent is from your previous letter to her. She is attempting to buy time with you.
Go over to your rental property and post the 3 day Pay or Quit notice on the door. If you do this today (or Sunday) give her an extra day for Sunday to address this issue. If you wish documentation that you posted this (some landlords will do this), take a newspaper with you and take a picture holding the front page of the newspaper (with the date) next to the notice to confirm the date you provided this.
She then has three days to pay her current rent (and late fees). If she does not remedy this issue you file for the eviction on the fourth day.
You do not knock on the door and discuss this matter with the tenant. Your Pay or Quit notice will, again, provide her with the information she needs regarding the rent.
Gail
You want to get rid of this tenant as soon as possible. The best outcome would be for the tenant to leave willingly.
You can post a 3 day notice, but then the tenant may pay the rent, pushing you back another month. In the long term, a bad tenant costs a lot more than a month's rent.
I would post a 30 day notice. Tell the tenant if they are out by the end of this month and return the keys and apartment in current condition, you will PAY them half a month's rent.
#2 General Landlording & Rental Properties Contributor
To summarise all landlords are suggesting, based on their experience, that you should evict this tenant. Do not attempt to make her work as you will only end up losing.
You and your partners, being inexperienced, feel keeping a bad tenant is better than being without a tenant.
Who do you think is going to be right.
One word- EVICTION!!
Kaleb...If this helps....the recommendations provided here are likely due from experience. There are probably more than a few who have posted here who have been in somewhat similar situations with late paying/non paying tenants and have waited too long to begin the process of eviction.
Then when the process has started there is the frustration of waiting as things progress through the court system.
Ahh...the lonely feeling of going to the mailbox, opening it and only seeing dust instead of a rent check.
Gail
@Kaleb Carsten Sorry brother that you are in this situation so soon! When I have a tenant who is trying to avoid me, I post a legal "notice to enter" to do a maintenance inspection. Then I take a buddy with me, usually one of my handyman or trade workers, so I have someone to back me up. From my experience, the tenant will be there and I will have the opportunity to talk with them. I keep my communications friendly, firm and fair. Especially with someone who I don't know well, I begin by talking with them about what's going on for them. I really listen. I clearly state what I need too.
My approach is "everything is negotiable". When I buy a tenanted property, I start by not raising rents and I begin repairs on any deferred maintenance. That tends to win tenants over to cooperate with me. I introduce my rental agreement within the first week and I introduce them to my management style. The tenants who don't want to work with me tend to move out on their own fairly quickly. Those that have nowhere else to go and lack funds are the ones that tend to hole in and not budge. That is why it's important to get to the place where you can have a dialogue. You also want to get a good look at the current condition of the unit so you can document it at that point in time.
If I get to an impasse, then I clearly state to the tenant.... "This is not working for us, so let's talk about a move-out plan." If I can avoid the cost and duration of an eviction, it will be best for me and best for the tenant. What are the tenant's barriers for moving out? What can I do to ease their exit from my property and help the tenant save face during the process? With over 20 years of landlording experience and 17 rental units, I've only had to proceed with 3 evictions through the court system. At an average cost to us of $800 and four weeks to proceed with an eviction, I am all for creating a win-win by negotiating with a tenant for their peaceful and swift departure from my property. Keep in mind, I do post the legal notice to "Pay Rent or Quit", so if the tenant and I can't work out a solution I can still proceed with eviction through the court system if necessary.
If you get a chance, listen to BP Podcast #83 where I share some of my landlording tips and strategies. Good luck!
P.S. Questions such as yours are better suited for the Landlord Forum instead of Renters Discussion. FYI from BP: "Renters Discussion - This is the forum for renters who are looking for advice in dealing with their landlord. Ask questions about dealing with landlords, leases, tenant rights and other important issues." "Landlord Forum - Forum topics below include discussions for landlords and potential rental property owners, including those on finding and dealing with tenants, property managers, management companies, and other issues affiliated with residential income properties."
So here is an update for all of you. We did end up signing the tenant to a new lease with an increased late fee and a more standard grace period. Ultimately we decided we should take this route because when we closed in the house we were given a pro rated check for this month's rent. This month was kind of a wake-up call for the tenant, if they are late this month I have the 3 day notice ready to go. Thanks for the advice everyone
@Kaleb Carsten Good luck and I hope it works out. This time you know not to let her even try and weasel out of paying rent, ect. Put your foot down right away and if she's going to be a good tenant from here on out, then you will have to train her to be that way.
If is a struggle it probably means your headed the right direction right?