How to Get Tenant to move out or pay higher rent

Question

Here is the situation - I purchased a home in Indianapolis and the seller claimed the rent was $650. The tenant claims she has been paying $480. When I asked her to provide a copy of the lease, she sent one that expired a year ago. The market rent in the area is $700. Any tips on how to either convince her to pay close to the market rent or get her to move out?

Nathan Gesner · Answer

When a lease expires but the tenant stays, they remain on the same terms as a month-to-month tenant. Give them the required notice to vacate and be done with it.

In the future, you should never take the Landlord or Tenant's word. Use an estoppel certificate to ensure all parties agree on the lease terms, rent rate, deposit, etc.

Caroline C. · Answer

You don't have a copy of the lease from the seller? If the tenant has a lease that expired a year ago, (ie: nobody can produce a current lease), then you just need to draw up a new lease, provide a month's notice of the increase, and if she won't sign or move out after the 30 days, consult a real estate lawyer or file for eviction.

Thomas S. · Answer

As suggested first confirm your rights as a landlord in your area. Assuming you can legally raise the rent to market send the notice immediately. She will either pay move or fight.

Keep in mind that a good tenant is one that is paying full market rent. When you inherit a tenant far below market it is usually best if you find a new tenant rather than trying to work with a existing tenant.

Matt K. · Answer

Is this a Morris invest/ocean pointe property ?

Brian Dvorak · Answer

Thank you all for the feedback. The tenant pays rent on time and wants to stay there. I will likely negotiate with her to something we can both agree upon. If not, I will move forward with eviction.

Joel Wilmoth · Answer

Typical Morris/Oceanpoint situation it appears. All the comments provided are accurate in normal situations. Assuming that is the issue the owner or PM can resort to cancelling the lease with 30 days notice. We have had dozens of these from the fraud cleanup related to this mess. Be prepared to hire an attorney and evict as the tenant (assuming they are paying) may fight and refuse to leave. You do have every right to cancel with notice.

Matt K. · Answer

There was issues with the Morris invest properties and ocean pointe was paying higher rents than what tenants had signed.

This all came up when people transitioned to new prop mgmt companies...

Ali Boone · Answer

You didn't verify the rental income before you closed on the property? That's your first lesson that hopefully never do again...

If the city it's in doesn't have rent control, just raise the rent on her. If she's a really good tenant though, it'll be more worth not raising it outrageous to the point she leaves, but decide what would be a workable rent for a good tenant. If she's not a great tenant, just give the proper notice and raise it.

You doubtfully can just tell someone to leave a property. Depends on the state, but you can't just toss her out because of your own mistake and you don't like what she's paying.

Sorry, gotta tell you.... you missed some things during the due diligence period. I would, however, reach out to your agent and find out what they based that $650 rent off of just to be sure that the tenant wasn't actually paying that and now she's trying to play you.

How to Get Tenant to move out or pay higher rent

How to Get Tenant to move out or pay higher rent

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