We are closing next week on a SFH that we plan to flip. It's in an up and coming area, it needs some updating, but is a 1925 bungalow with great bones and we are hoping to make some money. The house is currently rented with the lease ending 8/28/18. The house is disgusting inside, you can't see the floors, they have never thrown away a single piece of garbage, there was a dead rat in one of the bedrooms. Also, the lease says 'no pets' and they have a cat that they tried to hide. The tenant was there during the inspection and was trying to keep us out of rooms. She said the cat was 'not a good hunter' and that they got it for the rodents. The rodents are no doubt there because of the garbage. She said they would like to stay, unless 'you are going to raise the rent." Um, yeah, you aren't staying.
The lease says that they should be notified 60 days before the lease ends if the lease is being terminated. Well, we don't close until 7/12 which is only 45 days before their lease ends. I would give them their security deposit back if they would go early so we can get in and start working. Any thoughts on how we should handle this? The property management company appears to have been horrid as they told us they didn't have heat all winter (luckily for us there is a brand new HVAC) and surely they don't know the conditions there.
I would appreciate any thoughts.
My first thought? Extend the closing and give notice so they are out before you take over. That may not be an option so the second best option is for the current owner to give them 60 days notice right now. That written notice will transfer with the sale of the home so you can get the clock running as early as possible.
You could give them the opportunity to clean up but I don't recommend it because they will eventually return to this squalor. Just get rid of them as quickly as possible and run your business.
Hoarders are a fact.. most are owner occ's as they need years to create those conditions.
I tore down 5 houses last year all Hoarders so bad you would not even fathom it.. you could not walk in the houses with out a respirator the stink was so putrid.. but these folks they live like this day in day out.. That's five houses on 200 to 500k lots LOL.. houses went away and we build new construction or sold lots.. its quite sad but all were owner occs none were tenants.. usually tenants get booted before they can get as bad as these homes were.. these homes were beyond salvage plain and simple.
Cash for Keys can be a good option. It gets them out and gives an otherwise cash-poor tenant some money to get another place so they aren't living on the street. I always operate with compassion - and it comes back to me 10x when I least expect it!