Inherited Section 8 Tenant Headache
In August I went under contract for a 6 unit (2 building) property. Three units receive section 8 assistance. One of those tenants appeared to be trouble from the start. The seller advised me of issues she had been having with the tenant including having more pets than allowed which resulted in a flea infestation of the entire building. Her unit was very cluttered, but not horrible, when I saw it during the initial walk through and inspection that followed. At the end of September I was notified that this tenant would be moving and that the unit would be vacant. Vacancy was not on the contract (lesson 1), but I was relieved to know I wouldn't have to deal with the headache.
Fast forward to November 14th when I went to the property for the final walk through prior to the 11/15 closing. When I arrived the seller advised me that the tenant never left and they were refusing to allow us entry during the final review because the seller did not give her 24h notice. This was obviously a bit concerning especially because their wall furnace was part of the PINA. I should have delayed closing until I could get in the unit, but the seller was leaving the country in 5 days and would not return for a couple months...Lesson 2.
11/17 I met with Belmont to go over paperwork for 3 tenants at the property who receive assistance. During the meeting they gave me an inspection notice (dated 11/15) for this particular unit which included two tenant items: 'Clutter in unit' and 'Clean and Sanitize' which I understand are not handed out lightly. I advised the case worker that I would not be renewing their month-to-month lease. I only had to decide whether or not I wanted to renew the lease for January or force the tenant to move during the holidays. Though I felt like a bit of a Grinch I decided to tear the band-aid off and sent a non-renewal letter via certified mail on Monday the 20th advising I would not renew after December.
She received the letter on the 21st which is the same day Belmont called to report her furnace was not functioning properly. I called and spoke to the tenant to get detail on the furnace and advised I would be by the property that afternoon to take a look. The tenant was not home when my handyman and I entered the apartment. The unit was filthy! It appears the tenant is a hoarder, if not she is well on her way to becoming one. Since then the tenant will not return my calls or the calls from Belmont who is trying to help her with a moving voucher.
I have not received the tenant portion of the rent for December ($199) and mailed her a pay or vacate on 12/7 via certified mail with signature required. USPS was unable to deliver the parcel and she has not picked it up from the post office. I've since learned that New York requires I properly serve a pay or quit so I will need to serve another before I can begin the eviction process.
I can't justify hiring an attorney for the $199 late rent. My hope is that she vacates by the end of the month which I seems unlikely. If she vacates I'll write-off the $199 as a small price to pay to be out of the situation. If she does not vacate she will owe $740 on 1/1 due to Sec 8 not paying after a non-renewal and a couple late fees. At that point I plan on attaining an attorney and filing a holdover eviction along with the overdue rent.
This 6 unit is only my second rental property. I've never had to deal with section 8, hoarders, or evictions in the past. Any feedback or suggestions would be greatly appreciated. Thanks