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Jack Macioce
  • Accountant
  • Pittsburgh, PA
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Inherited Tenants - Real Life and Example And Questions

Jack Macioce
  • Accountant
  • Pittsburgh, PA
Posted Jun 10 2017, 10:28

I recently bought a property (triplex) near Pittsburgh, PA.  During my due diligence phase, and about three months prior to closing, the previous landlord signed a tenant to a 1-year lease.  I obtained a copy of the lease and actually met the tenant while performing a walkthrough.  To make a long story short, the tenant seemed to be a good fit, and I did not prevent the landlord to not move forward with the lease (the landlord asked me if I wanted them to sign the lease or not).

Fast forward to one month after closing, here is what I experienced.

1.  Sent out "new landlord/owner" letters notifying the tenants of a change in ownership.  We provided a notice to enter the premises, as well as a copy of their lease to explain that their current lease would be remain in full force and effect.  I received a response from the tenant which included - "Is the lease still legally binding" and "Would I be able to terminate the lease early?"  Being new landlords to the property and wanting to put our own tenants in here, we said we would allow her to break their lease.  Paperwork was sent for them to sign to terminate the lease.  A response was never received

2.  Upon showing a vacant unit to other prospective tenants, we could smell marijuana emanating from her apartment.  A day later, the tenant downstairs complained of the smell via phone call.  I documented the conversation.  Immediately, a notice to abide by the lease was sent to all tenants via posted notices to each tenant's doors (pictures taken).  In addition to the notice for this tenant, we provided a late notice for her current month's rent.  An email was received from the tenant later that night sating that she would pay it and that she changed her mind about leaving and wanted to stay.  My response was to review the lease and to pay rent within the allotted grace period.  I also mentioned about other tenants complaining about smoke emanating from her apartment.

3.  Next day - Tuesday morning - I get a call from the tenant downstairs.  In the background, I hear an alarm going off.  The downstairs tenant said the fire alarm was going off and that they could smell smoke coming from upstairs.  They indicated that the tenant occupant was not there, so they called the fire department.  I called the tenant to explain what was happening and to ask what is causing the smoke.  They indicated that they were an hour away for work and could not get back to the apartment.  A half hour later, the fire chief called me and explained  that they had to kick the door in because they could not wait any longer.  The culprit was a bowling pot of water with "tea leaves".  The water burned down and caused the smoke.  After, the downstairs tenant called me back to explain everything seemed to be fine, but that they saw the other tenant drive half way down the street, stop, and turn around.  Not sure I can take their word, but something didn't seem right.  Later, a worker of mine went to take pictures, and the tenant showed up.  During his time there, he said the tenant kept repeating that they were far away at the time.

4.  Two days later - a Notice to Pay or Vacate was sent via certified mail.  One month's rent, sewage bill and late fee were documented.  Today, I was planning to personally post the same notice on the tenants door and to tell the tenant that this wasn't working out and that we would still honor their lease termination.  I am planning to go out this afternoon, but I just recently received text messages from this tenant.  The messages stated that they "received the certified letter and asked if I knew what it was about."  It went on further to say, "I am leaving today and I will make everything clean.  Sorry just seemed like it wasn't a great fit and now you can move forward with the tenants you want with ease.  Thanks for being professional and understanding.  You can take what was unpaid for this month out of the deposit and for the door otherwise it will be very clean in here."

Here is a breakdown of fees owed to us:

$425 - one month rent

30 - one month sewage fee

50 - late fee

120 - charge to repair door kicked in by fire department

?? - potential fee to clean apartment and aerate for smoking

I am headed to the property today to sign a lease for the available apartment.  Should I address the "problem" tenant while I am there?  If so, how?  I think I do to collect keys, if anything.  Should I pursue them for the unpaid rent and fees?  The security deposit is $425, which if I prorated the rent and sewage, the deposit could cover everything, which if that's the case, maybe I do not waste my time trying to pursue them for the total amount?  Should I request that they sign something indicating that they are departing the premises and terminating early?  However, I am not sure that they would sign anything at this point.

Although not all details were provided, any recommendations or comments about this story?

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