Hey Everyone, I find myself in a unique situation and am hoping there are a few of you out there with experience/advice for my situation. I am pending on a duplex that already has existing tenants in the lower level, they have been there 3 years, always paid rent, and after meeting them really seemed to be nice people that enjoy living there. Where my long term concern arises is they are all 3 older and have various health problems they deal with..... so riddle me this. What happens if one of them passes away and the other 2 cannot afford the rent? I can't imagine having to be the landlord that evicts a poor, senior citizen, in poor health.... In a perfect world, they all live happily ever after another 20 years but my concern is what if they don't. Has anyone else been in this situation before and if so, how would/did you handle it?
@Jesse Mitchell , are you a real estate investor or a shelter? If you are in business, you have to keep it business, If they start having trouble paying the rent, you give a 5-day, and start the eviction process. Hopefully they will realize they can't pay the rent early on and will move, but you have to protect your investment.
Sorry to say but business trumps emotions. You can not pay your bills with compassion. Whether it is a senior or a single mother with a infant when they can not pay rent you put them on the street or go out of business.
I personally specialise in renting to seniors, they usually make the best tenants, but they do die and some are forced to move on.
No place in business for emotions.
@Ray Harrell and @Thomas S. I appreciate the insights. I absolutely agree with what you are saying... part of the business. One thing I would be curious about and is probably a question for an attorney, but if one passes would their estate take their place on the lease in terms of reaponsibility for the rent? I’m just trying to make sure there isn’t something obviously I am aware of as far as death and tenancy are concerned.
So Are you starting a community outreach program for senior citizens in your area or are you investing for profits ? Look If they don’t pay your going to have to kick em out plain and simple ! This isn’t unicef dude , your doing this to make money right ?
Hire a PM and let them deal with it, you sound way to emotional and this needs to be treated as a business.
What if you bought a unit with a 30-year-old millionaire that always paid his rent 15 days in advance with gold bullion and never even occupied the apartment? He could stop paying and leave you hanging one day. Or he could show up and burn it with a Molotov cocktail. Or he could pimp women out of it.
Every tenant carries risks, even the perfect tenant. You've already committed to purchasing so don't sweat it. Once you own the place, sit down with the tenants and express your concern to find out what plans they have in place. Then make sure you are protected with a well-written lease.
I agree with Colleen. I would wait until the situation arises and then address it with the remaining tenants. If they've been great tenants in the past, they will most likely be willing to work on a plan with you. I also recommend taking a look at your state's landlord-tenant laws in order to make sure you will be legally protected in a worst case scenario!