Lease expires, tenant signalling they will refuse to vacate

Lease expires, tenant signalling they will refuse to vacate

Broomfield, CO · Member since 2016 · 14 posts · 8 votes

I have a tenant who came by way of a temporary housing agency. Their son burned their house and the insurance company moved them into a hotel. The temp housing agency found my rental through Zillow and contacted me. I already had a tenant lined up ready to sign a 1 year lease but after hearing about this family's circumstances I decided to meet with them and show them the house. Then after talking to them and getting a better sense of their plight, I caved and signed a 6 month lease and sent the other qualified tenants away. At the time I felt it was the right thing to do.  

The tenants income is not sufficient to support the rent payment so I used the temporary housing agency as their income qualifier.  The temp agency refused to be named on the lease. I still signed a lease with the tenants and the temp agency has sent all 6 monthly payments on time. It's really been good in this regard even though I was nervous throughout the last 6 months. we will not do this again.

I contacted the family 45 days before the lease is set to expire inquiring about their circumstances. They told me that they would contact their insurance company and get back to me. Fast forward about 2 weeks and their temp housing rep contacted me asking to go month to month for less than the agreed upon rental rate.  Of course I said no. I also advised them that we aren't willing to go month to month because my wife and I are planning a trip out of the country for two months and we can't allow the house to sit vacant without renters during this time (and then have to return and spend another month looking for and qualifying new tenants). We offered another 6 month lease at the current rate. They did not agree. So we offered a 4 month lease at an increased rate. They refused and got weird with us. We gave them a deadline to contact us  on or before Friday March 30th 2018 @5:00 pm before we would proceed with notice to quit (even though in Colorado, this is not required when the lease is going to expire anyway). Didn't hear from them. 

We posted the notice on the front door (and took a picture of it) the following Monday. Now the tenants are telling us that they do not intend to move. They even told us that they went to legal aid and that the attorneys there advised them that we have to allow them to stay month to month after the lease expires (which I know isn't true and I told them to have those attorneys contact us).  They also stated that they only need it for 1 to 2 months which will be right in the middle of our trip (this is why we offered a minimum of a 4 month lease renewal). Nowhere in our lease is there a guarantee of a month to month agreement upon expiration of the lease. The only place in the lease where it talks about month to month is in the holdover clause and it states very clearly:

20. Holdover. Tenant must vacate the Premises and remove all of Tenant’s personal property from

the Premises before 11:59 p.m. on the date the Term expires. If Tenant fails to so vacate the Premises,

Landlord may immediately commence eviction proceedings at its sole discretion. If, after the Lease

expires, Tenant remains in possession of the Premises and continues to pay Rent without a written

agreement as to possession (and Landlord accepts such Rent), then the tenancy will be regarded as a

month-to-month tenancy, at a monthly rental of $3250.00, payable in advance, and subject to all the

terms and conditions of the Lease.

We have given more than sufficient notice and we will not accept the rent payment. We've already secured another lease (friends of ours) and we've made it very clear that they must be out by the date and time the lease expires.

So, given the circumstances above here is my question:

If they are still there the day after the lease expires, can I enter the property and take possession without going through a formal eviction process?

If I need to go through the formal eviction process; how long before the lease expires should I start the process OR do I have to wait until the day the lease expires?

How do I encourage them (peacefully) to move out? I don't wish to upset the family but I can't sacrifice my own family's financial well being for their plight. I am willing to offer cash for keys as a last resort but I'd rather get them out by advising them that this will be a costly decision on their behalf and that moving out would be the best option for them. I certainly don't wish to threaten them even though they don't seem hesitant to do that to us.

If they don't move; can I sue them for damages as a result of losing or inconveniencing the other tenants?

For your reference, the property is located in Adams County Colorado. Any other advice is greatly appreciated. Thank you in advance.

~Joe Senchuk

0Reply
101 views

Most Popular Reply

Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
8y

If you were a local friend I'd take you out for a beer and then tell you how badly you f'd up.  You ran your rental like a charity and not a business. When I was younger I wondered why my landlords all had hard hearts. Now that I've talked to hundreds of unqualified sh1tbirds like your tenants, I know why.  These kinds of people are going to cause you no end of headache until they are gone. In fact, they might even come back and mess with the property once they are gone. 

The good thing is you learned a very valuable lesson right up front.  If you see what went wrong and take much more care in the future with tenant screening, this will be your "high water mark" for bad experiences.  All of what you say is NOT normal behavior for good tenants.  You were screening but you made all the wrong decisions while screening.  

I'd strongly suggest to get a good management company in place for now. They will know how to get rid of these tenants legally and correctly (probably through cash for keys), and will find qualified new tenants while you are on vacation. They can also handle the turnover, will also keep an eye on the property while it is vacant. 

Also, if you decide to sell, most management companies are also realtors, and can get your house cleaned up and put on the market. 

Otherwise, you dont have to keep the management company when you return, and you will pay for their services and a bit of markup on the turnover, but it would let you back away from all this drama and rest easy while you are on vacation. 

See this reply in the discussion

33 Replies

Jump to latestLatest
  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    8y
    Originally posted by @Benjimen Elliott Johnston:

    You might check with an Attourney first, but a friend of mine in Atlanta sends a notice he will be working on the front door. He then goes and takes it off the hinges and takes it home, leaving the Home exposed. Or he says he is working on the AC unit and disconnects it. He may do both. They get uncomfortable, enough they move. I don’t know that I have the kahunas for that, but it works for him.

     That's a good plan.  For making a bad situation much worse.  Self help evictions are a sure way to cause yourself more trouble.

  • Broomfield, CO · Member since 2016 · 14 posts · 8 votes
    8y

    Yep. I am working with an attorney that Jon Holdman referred me to. Drew Hamrick with THS Law. Was definitely good advice. Thanks Jon.

    ~Joe

  • Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    8y

    @Joe Senchuk You are simply better off starting the eviction process. 

    Being nice and a landlord is a very tough play! 

  • Accountant · Saint Louis, MO · Member since 2017 · 409 posts · 362 votes
    8y

    @Joe Senchuk, I'm confused. You thanked me for not being condescending at first and then went and said, multiple time, I had offered condescending remarks. I was not trying to put you down so if you felt that way, then I guess my bad. 

    @Benjimen Elliott Johnston, pretty sure doing either of the things you suggested are illegal, and would result in real problems for a landlord doing such.  

  • Broomfield, CO · Member since 2016 · 14 posts · 8 votes
    8y

    I wasn't referring to you Donald.  Moving on...

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    8y
    Originally posted by @Joe Senchuk:

    Yep. I am working with an attorney that Jon Holdman referred me to. Drew Hamrick with THS Law. Was definitely good advice. Thanks Jon.

    ~Joe

     Ya can't let the rental run your life. I recommend that you get a PM because making business decisions based on timing of your vacation is not a long term solution. It's the rental biz, there is always gonna be issues. It's a vacation this time, it'll be something else the next time & the time after that etc....

    Hire a PM then evict these tenants the moment they don't pay rent & move on with your life. Repeat that process for any & all future tenants.

  • Broomfield, CO · Member since 2016 · 14 posts · 8 votes
    8y

    Update... I was able to work things out with this tenant. They agreed to a 3 month lease extension that required the entire 3 months to be paid upfront. The rent has been increased by $250/month. They signed a lease extension agreement and gave me the check last Thursday and the check has cleared. This worked out for them and for us. We will have enough time to go on our trip and deal with the rest when we get back. 

    We inspected the property and it is in good shape. Just a few minor things but nothing that would require us to keep the entire security deposit at this point (maybe $100-$200 worth of damage to a few blinds and sprinkler heads). 

    After talking (nicely) to the tenant and providing several scenarios they seemed to come around to the idea that it was just better to work this out and compromise. I was also told that they were advised by their representative with the temporary housing agency to just stay after the lease expires. Nice huh? This guy's credit is in the "good" range and this lady advised him to work against us... I think most of our problems originated from the person pulling the strings at the temp housing agency. She got an attitude when I told her that we weren't going month to month because we were headed out of the country for a couple of months during this time. She really got an attitude when she discovered that she wasn't going to bully us into doing what SHE wanted. It seems she lost site of what was most important... her client. I'm now in touch with the insurance company's (Allstate) claims rep about how this went down. I even copied him on our entire chain of communication. We'll see how things work out for her. I don't really care. I'm no longer working with her.

    Also, the tenant took me over to his burned house to see what it looks like and the progress that has been achieved so far. I should actually say... lack of progress that has been achieved. It's been 6 months and the house is still bare studs. The contractors haven't been showing up and they have had 18 infractions (12 electrical , 4 plumbing and 2 framing). In my opinion based on many years as a GC, I do not see their house being completed by July 31st anyway. Now they are talking about firing their GC. So I suspect that when we return from our trip, they are going to need more time in our rental...

    My other renters that I had lined up have agreed to move into one of my other units that opened up a week and a half ago until this house becomes available on August 1st. I kept them in the loop about what was happening and worked to get them situated in the mean time. I am glad that they have been so understanding and willing to work with me. In the future, I guess I should be more careful about lining up renters before my current tenants move out. I've never had a problem like this before so...Not sure... it's good to get the unit re-rented asap. I'm open for suggestions about this though.

    That's about it... got it worked out. No eviction process required at this time. When we return we'll be happy to go month to month as long as the house is in good shape and they aren't defaulting in anyway. Hopefully they will just move out so our other tenants can move in.

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    8y

    @Joe Senchuk great problem solving on this one! Glad it worked out.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.