Updated over 8 years ago on . Most recent reply
Inheriting a Tenant-Need a Game Plan
Hi, I'm currently working on securing my first investment property and duplex. The plan is to self manage as I want to learn that part of the business while I'm young and full of energy. Plus, my failure risk right now will be somewhat low as I will be living in the other half of the duplex, and can cover the mortgage comfortably with my full time job (I still recognize I'm taking some risks).
Situation on the current tenant:
First red flag: Met her (tenant) twice (during walk thru and inspection) - both times heard lots of "woe is me" I have 3 jobs, single mom, don't have time to clean excuses. Not the most promising start. Condition of the apartment is average; no mass destruction but stuff everywhere and needs to be cleaned up.
Second red flag: Received a copy of the "lease" if you can call it that. It's a one pager, very limited detail. It was a 6 month lease signed in 2014. Doesn't spell this out but from research I believe it defaults to a month-to-month in the state of PA. Landlord pays everything except electric, even though there are separate gas meters too. Lease is hard to read but it appears to have originally been written for $675 a month (market rent is about $775 now).
Third most worrisome red flag: 3 Months ago the current landlord dropped the rent to $625 (now at least $150) under market because the tenant was having trouble making the payment. Also no security deposit or last months rent was collected.
Based on all this I decided I would be better off terminating this lease, doing some repainting/light work to the apartment and trying to get a new tenant that I can screen in the apartment.
Should I terminate their lease?
If so, should I wait until I am moved in before I terminate (about 6 weeks) then send 30 day notice or should I do it once we have ownership of the property?
-I have concerns about my tools, construction materials etc being there unattended, but at the same time, I will have my entire home there unattended when I move in (albeit more secured). I also want to get the unit flipped and rented during the summer so I can have it on the market during prime time.
Thanks for reading and your thoughts on the topic