What to Do with Inherited Tenant

Question

Hi Everyone,

I have a few ideas in mind, but considering this is my first property, I figured I would ask more seasoned professionals for advice. I close on my first property a week from today (a triplex I am house hacking). I have one tenant I am inheriting that is a student at the local college that is a half mile away. She has no lease, no security deposit, and has not paid the current owner rent for the month of November. During walkthroughs I have seen that her unit is pretty untidy and she also has 2 cats that she has not paid a pet deposit for. My question is how to handle it when I close? I need the rent money to help fix the place up and finding tenants in December in Illinois does not seem like it will be a fast process. I appreciate any advice, thank you.

Linda S. · Answer

I had a very similar situation, and granted I'm a newbie too, but here's what I'd suggest.

Go talk to her, give her a new lease, and require either a pet deposit and/or pet rent to compensate.     Most people are nice, remember-- this is her home, she likely wants to stay!   Maybe the prior landlord was relaxed and she learned she could take advantage of them.  She lives there, so you have someone in place already who wants to be there, just because she hasn't paid, doesn't mean she won't or is refusing.   Send her a lease, with the required rent, and state that if she doesn't sign, she has 30-days to vacate.    Even better-- if she's a student, require a cosigner!

If it's a triplex,  wouldn't you rather have some income, even if it's just a little rent to help pay bills while you are renovating the other 2 units?      Personally, I don't see the value in kicking a tenant out, when that unit (even if it's subpar quality) could be producing income to help pay bills.   ..what's the say.. you get more bees with honey than vinegar... make her sign a lease, get rent until you're able to renovate her unit.

Michele Fischer · Answer

It sounds like you might want to keep her for the time being.  I would draft a new agreement with plenty of rules about housekeeping and the pets.  If there is no current written agreement it is probably a verbal month to month legally.

A new agreement in your wording will make it easier to enforce, set expectations, and show non compliance later if needed.  Explain to her that none of the deposits she may have paid have not transferred to you and she will not get any back when she moves out.  Include that in the agreement and make them sign it, they always forget.

November rent is water under the bridge, shame on the current owner, insist on December on time or start the eviction process.  Be professional, firm, but positive.  Assume the best until you can determine that you need to get a better tenant.

Account Closed · Answer

@Zach C. start off by sending a 5 day notice. If the tenant doesn't move out voluntarily, you will need to file a forcible entry detainer action (eviction). Feel free to PM me if you need assistance in that. It's an area of law that I focus on.

Account Closed · Answer

Get her and the pets out sooner rather than later. Cat urine smell is tough to remove.

Michael Noto · Answer

@Zach C. In the future you can always write into the contract that a certain unit be vacant upon sale.

That ship has sailed now and in my experience it is better to start the eviction process as soon as possible rather than waiting. What is the difference if you have a vacant unit as opposed to a tenant who doesn't pay? Seems like the same thing to me.

Cut the cord and get your people in there that meet your screening criteria.

Shawn Ackerman · Answer

What are the laws regarding eviction in your market?  In my market we can evict within 30 days.  If you don't have the law on your side with respect to expediency, I'd try and work with the tenant.  The only way I purchase property is with tenants in place.  I have not had a single eviction in 2016!  I've had tenants behind, late etc.... But I have an excellent property manager who finds a way to get all of our tenants back on track.  Best of luck!

Vincent Mazzaferro · Answer

Hi Zach,

I inherited 2 tenants in my first property.  One was good and one was bad.

I think the above advice was great to act professionally and offer her a new lease with your rules, a new deposit, and a pet deposit.  Be clear about the rules and what happens if the rent is late.  Start eviction at the soonest practicable moment if she fails to pay.

I like to give people a chance to do the right thing but in the end it's your property.  Do whatever you want just do it legally.  If you do offer her a lease, I would make your connection to an attorney in advance so if she doesn't pay, you know how to move forward quickly.

Scott Steffek · Answer

Zach,

Illinois is a very friendly tenant state. However, if she has no lease, it's easier to get her out.  I'm assuming the property is in Decatur. I know up here in Chicago, the Sheriff's department does the evictions and they're running 2- 3 weeks behind.  You may want to tell her she has no lease and needs to move immediately and see how she reacts. But contact your attorney and he'll walk you through the steps. Good Luck!

Kim Meredith Hampton · Answer

Give notice to vacate, this is not how you want to start out on your first property. Check your law with regard to proper notice. If you want her to leave right away, then possibly offer to give her cash for keys if she doesn't seem to enthused to leave.

A lot of month to month leases   Go in accordance with how she was paying her rent (month to month) , then thirty days notice

Robert Leach · Answer

Hi Zach,

I agree with Penny however Illinois law makes the process of removing the tenant lengthy if the tenant refuses to leave on her own accord. I would make certain you get an attorneys advice and act accordingly.

What to Do with Inherited Tenant

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