Rented to Previous Owner

16 Replies

Hello Everyone,

First post here on BP forum, been a fan for a while.

I bought my first Multi-Family property a month ago. The previous owner needed a place to stay for approximately 3 months. Since he slashed 29k off the asking price, I decided to rent it to him for half the market rent price ($650). We did not create a lease and our only reference is an addendum on the sales contract for the house. He paid me three months in full at the day of the closing with a check.

Everything was fine and dandy until he texted me one day saying that I have to curbside his trash. I was so confused because, in my mind, he would be living there just as he normally would before the deal. So I went and curbsided the trash (It’s close to my apartment and I went to pick up my mail which I started forwarding there after the close) then I text him saying that I curbsided the trash and I was wondering why didn’t he want do it himself, after all he’s been doing it all these years? He replied “Are you serious?” And said that the grass need to be cut also.

I was in shock. There were no parameters set before or after the deal, and now we have been going back and forth. He does not want to take out the trash or cut the grass. He also hasn’t given me the keys to his side of the property.

My question is, should I wait the 3 months and see what he does next and curbside his trash? Or should I attempt to evict him or something along those lines before the time comes? Any other strategies that you guys believe I should do?

Thank you

Every time I hear of a landlord doing this arrangement with the seller it goes south . I don’t know why this is but it seems to never work . Without a spelled out lease your going to have to set boundaries and ride it out 

Wait it out, since you took the full payment in advance he has you by the.........…

Make sure you give proper notice to non renew his lease (verbal) according to your state landlord tenant regulations. Assuming his lease ends the end of October make sure you give notice BEFORE the end of September to be effective.

One month a landlord and you have already learned 3 major lessons:

1) never rent to a seller or their family members.

2) never accept rent payment in advance.

3) no good deed ever goes unpunished.

@Willie Marte I would roll the trash to the curb and cut the lawn for 3 months for 29k! Just read the law for your state. Tape and photograph “30 day notice” 30 days before his 3 months are up. Or whatever the law requires. Be nice but say he is welcome to stay but he will need to sign an x month lease and rent will be raised to x amount. Your lease should be tight and spell out his responsibilies...or charge above market rent and still do the lawn and trash. Tar leases are on the internet for an example of a good lease (but it is for Texas and copyrighted).

@Willie Marte I believe what you have here is just a difference in expectations. I'm guessing as the owner he used to mow the grass and take the tenants trash to the curb and now that you're the owner he thinks it's your duty. With a Multi-family, it would be unconventional for anyone other than the owner to be in charge of the landscaping, but many owners do provide a curb-side trash service as either an amenity or an additional charge. 

As a business practice, just don't.  If they needed cash to move, cough up the extra 2-3K.  If they need a place, refer to a fellow investor.  DO NOT LET SELLER OCCUPY PROPERTY POST-CLOSE.  Do not close until after they move.

Take his trash out for him....no way, he’ll take it out eventually.  For a nice person with some type of infirmity, I’d probably do it, assuming I lived next door.....but with his attitude, not.  With no lease regarding who cuts the grass, that’s probably yours.

I've never heard of a landlord going to their properties to take the trash to the curb. Is this common in some areas of the country? And, you already know, nobody gets to live in one of your properties without a very detailed and signed lease. Nobody. 

@Willie Marte to many personal ties to the property to let the previous owner rent after closing especially without a lease. Try talking to him to see if you guys can come to a resolution. If not maybe hire a property manager to handle that property.