I currently have a new opportunity to manage a rental property for a family member of mine. The property in question is 25 Runabout Ln 31410 Savannah, GA. Currently there is 1 tenant living in the house and they are behind 2 months rent. The rent has also been stagnant at 1400 a month for 9 years. My idea to the owner was to evict the tenant and raise the rent closer to 2000 a month as the house next door is a bit smaller and rents for that. The owner wants to be nice and give the tenant more time to pay but i don't think it is a good idea, especially given that the rent needs to be raised a good bit. The tenant also has a tendency to not tell the owner when things break which will only add to the cost down the road. If i evict the tenant the rehab costs would surely be around the 5000 mark. I'm curious as to what I should do in this situation, any thoughts would be greatly appreciated!
There is also not a current lease between the owner and tenant.
After a bit of research I found in my state this is now considered a tenant-at-will situation and since she is behind 2 months rent I could potentially start the eviction process now.
Should I try to work with the tenant knowing they are behind on rent and I will have to raise the rent a substantial sum to keep it with the current market. Or should I convince the owner the only option is to evict now?
If you were 60 days late on your rent, would you get an eviction letter? If you own your home would the bank be contacting you about late payment on your mortgage? The answer is yes. Paying rent on time is not an unreasonable standard. I would file at the courthouse and get the ball rolling, I would also inform them that the rent is going up to market rates. Here's a great reference for your legal rights and the tenants.
When they leave I would do a quick but thorough updating of the place (Paint/carpet/appliances) and a super deep clean, then rent it out for the 2000 a month. I would also make sure that you CAN rent it for that much more.
Verify what I’m about to say just to be sure:
So since they aren’t in a lease they are in a tenant at will like you said. The landlord is required to give a 60 day notice of eviction and the tenant is required to give a 30 day notice.
I think what you might actually have is a tenant in sufferance situation (if there was ever a lease)
Since they are behind I would not accept anymore money from them if you plan to evict them. If you accept any money from them the process starts back over (again, verify that).
You could possibly begin the eviction process and give them the opportunity to pay everything owed or be evicted. My guess is though, since they are already that far behind they prob won’t catch up.
Thanks for your feedback. I hope i can convince the owner to evict but it might be difficult as she has the house paid off and does not need the money that bad.
It seems I have a long fight ahead but hopefully I will get lots of experience and knowledge for future deals.
I would also verify this is legal, but I would consider serving the 60 day eviction and telling them if they can get out within a few weeks you won’t alert the credit bureau to there delinquency, not will you give any negative feed back if they wanna use you as a land lord reference. Like Curtis said, we can all understand what it’s like to be in a tough situation, but two months rent is a bit overboard especially if they are already neglectful tenants.
Thoughts from inexperienced person, so take them for what they are.
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