how to deal with a tenant who is hoarder

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how to deal with a tenant who is hoarder

Ashley Zhang
Accountant · CO · Member since 2018 · 195 posts · 23 votes

I found this potential good deal, it is a multi-family at good location and good price. however when I asked the owner why did  he decide to sell it since he is a investor himself, he told me because one of the three units lives a hoarder. he paid rent on time, never late, but no one wants to live next door to him. there is 10 months lease left in the contract. should I walk away or any other creative way to get rid of people like that?

thanks !

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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y

Hoarding is a mental illness you are not going to be successful turning him around. It is a fire and safety hazard. You have grounds to evict and should give notice to cure or quit. Give him a short time frame then proceed with the eviction.

There is no reason to be creative. The sooner he is out the sooner you can clean up and find tenants for the other units.

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  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    7y

    Cash for keys? I don't usually like that, but 10 months?! What the hell, owner? Why did he renew the lease to a known hoarder? Anyway, try asking the tenant if s/he'd like to move, and what it would take. Tell them; "I'm looking to purchase the property and possibly do some remodeling". 

    1Reply
  • Spencer Abeyta
    Property Manager · Colorado Springs, CO · Member since 2017 · 126 posts · 67 votes
    7y

    I would check the lease that is currently in place to see if there are any rules reguarding the tenant maintaining a certain level of cleanliness or liveability to their unit. If there is, this could be grounds for a possible eviction. However, this eviction would be more difficult because it is a lease violation and not as clean cut as the tenant not paying rent. And worse case senario if you can't find a way to remove the hoarder, try to calculate the cost of people not wanting to live next door and see if you can get a lower purchase price where the numbers work for you. Good luck!

    1Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    7y

    Hoarding is a mental illness you are not going to be successful turning him around. It is a fire and safety hazard. You have grounds to evict and should give notice to cure or quit. Give him a short time frame then proceed with the eviction.

    There is no reason to be creative. The sooner he is out the sooner you can clean up and find tenants for the other units.

    3Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y

    @Ashley Zhang. Why evict a paying tenant? Let him stay there. Figure out a way for people to be okay with him living there and let him stay

    0Reply
  • Ashley Zhang
    OP
    Accountant · CO · Member since 2018 · 195 posts · 23 votes
    7y

    Its an old style house converted into 3 units. So i assume each unit is very close than regular rental properties. this horader is kind of filthy, so no one want to live next door to him. I kind of understand if it was me, i prob wont want to live there either.

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  • Casey Crowe
    Columbia, SC · Member since 2017 · 77 posts · 49 votes
    7y
    Originally posted by @Caleb Heimsoth:

    @Ashley Zhang. Why evict a paying tenant? Let him stay there. Figure out a way for people to be okay with him living there and let him stay

     Because with hoarders typically comes roaches, mice, and if they have animials, fleas and feces/urine. Not only will it stink, but it will create a pest control nightmare. And in a multifamily unit, if your neighbor has bugs, so do you. Yuck!

    2Reply
  • Ashley Zhang
    OP
    Accountant · CO · Member since 2018 · 195 posts · 23 votes
    7y

    Hi Casey, i think that's exactly what is happening. Other tenants are all moved out because of that. Well, i guess there is reason why the house is cheaper than market price, it comes with cost.thanks!

    0Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y

    @Ashley Zhang

    That tenant would probably prefer to be dragged out dead than leave. There is no creative solution here. I don't know the laws in Colorado. I know them here. If I bought this place, Step 1 would be giving him 24-hour notice that I would be entering to inspect. Step 2 would notice to quit nailed on the door. From there it's paint by numbers and jump through the court hoops until he's out. Heartless and implacable every step of the way. And the minute he's out,  the utility trailer gets loaded up and off go all his belongings to the sorting center.

    An eviction in my area does not happen in a vacuum. The road to help leads through the court system. The only way to guarantee this person is confronted by the mental disease he is afflicted with is to be the hard societal limit he comes up against, the rock bottom he smashes into. That is the definition of intervention, that is the highest-probability road to his getting actual help. It's the greatest kindness you can offer this man.

    And damn his family, his friends, and the current landlord for not having the stomach for it.

    3Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    7y
    Originally posted by @Ashley Zhang:

    I found this potential good deal, it is a multi-family at good location and good price. however when I asked the owner why did  he decide to sell it since he is a investor himself, he told me because one of the three units lives a hoarder. he paid rent on time, never late, but no one wants to live next door to him. there is 10 months lease left in the contract. should I walk away or any other creative way to get rid of people like that?

    thanks !

     I try to avoid removing paying tenants whenever possible. In this situation it looks as though you've got no choice though as this tenant's behavior is getting in the way of collecting income from the other two units. The reason that the current owner is selling it at such a low price is it's going to be a major pain handling the eviction process & turning the unit over after you finally get this dude out of there.

    This right here is how we make the big bucks in this business. The current owner has a problem he doesn't feel like dealing with because let's face it, this is going to suck........A lot. Are you ready to deal with the suck in exchange for scoring a good deal? What is your risk tolerance? What is your savage work tolerance?

    0Reply
  • Jassem A.
    Investor · PA · Member since 2013 · 1k+ posts · 602 votes
    7y

    Explain the seriousness of the situation in person and maybe offer some help. If they do nothing then post a cure or quit.

    0Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    7y

    I guess I’m the oddball but I would let the other tenants know in a fireside chat that you understand their concerns and help is on the way so please be patient till he’s gone

    . Then I’d simply let johnny hoarder marinate in his own filth for the next ten months as long as he pays the rent . Then before the lease is up I’d give him a non renewal notice to rid of him . As others mentioned he’s got severe mental problems that aren’t going to be solved by cash for keys , 15 notices nailed on the door or an abundance of Applebee’s gift cards . Just chill , Make your money off him, then rid of him when the lease is up .

    0Reply
  • Ashley Zhang
    OP
    Accountant · CO · Member since 2018 · 195 posts · 23 votes
    7y

    hi all, thank you so much for all the input! So far, so many investors turn around once they see the hoarder's side. If i can get it cheap enough, i may take a risk.

    0Reply
  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    7y

    You could get the health department to do a walk through and write the changes that must be made, then give the hoarder a 5 day notice to comply and stay in compliance.  The hoarder will not comply, so then you can have them leave.

    This will help you avoid the 'its a mental illness, you need to make an accommodation' if the property is in a snowflake area.

    1Reply
  • Ashley Zhang
    OP
    Accountant · CO · Member since 2018 · 195 posts · 23 votes
    7y

    Hi lynnette, thank you for the suggestion. May i ask you what is snow flake area? Thanks

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    7y

    Most buyers will take on almost anything for the RIGHT PRICE.

    Seller might be discounting it a little to dump a problem. The reality is the buyer to deal with that has to get it much cheaper to make it worth their while. 

    It might take months once the eviction and clean out is complete to get rid of the bugs. Then likely full rehab of all units and lease up. Plan on tons of money going out and little to nothing coming in for awhile. See how low the seller will go on price. If they are discounting just a little then typically they are looking for an inexperienced investor to dump a property onto and sell the potential to them.

    If just a little discount then typically not worth it as you could likely find another property without those issues and with full income in place already. 

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  • Casey Crowe
    Columbia, SC · Member since 2017 · 77 posts · 49 votes
    7y
    Originally posted by @Ashley Zhang:

    hi all, thank you so much for all the input! So far, so many investors turn around once they see the hoarder's side. If i can get it cheap enough, i may take a risk.

     Just beware of what it takes to clean out a hoarder house. We're about to close on a trashed unit, but it's just the upstairs two bedrooms. We're *hoping* they haven't ruined any joists under the subfloor. But there will be lots of reno to get it ready to rent again. Just do your research before pulling the trigger and make sure you have some cushion in your numbers. There's a thread here on BP where someone gutted a big house that was just incredibly trashed from hoarders. Lots of pictures to detail the process. But all that can and should be used to negotiate a good price. I would check to see that you'd get a higher bump in value-add by fixing it than it would cost to repair. 

    0Reply
  • Wesley W.
    Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    7y
    Originally posted by @Ashley Zhang:

    Hi lynnette, thank you for the suggestion. May i ask you what is snow flake area? Thanks

     It's a derisive term for an area where the government and community make excuses for bad behavior by calling it a "disability" and enable that bad behavior by protecting said person from "discrimination" based on their bad behavior, usually at the expense of hard-working people.

    Merely explaining the term, no judgements made. ;)

    2Reply
  • Ashley Zhang
    OP
    Accountant · CO · Member since 2018 · 195 posts · 23 votes
    7y
    Originally posted by @Wesley W.:
    Originally posted by @Ashley Zhang:

    Hi lynnette, thank you for the suggestion. May i ask you what is snow flake area? Thanks

     It's a derisive term for an area where the government and community make excuses for bad behavior by calling it a "disability" and enable that bad behavior by protecting said person from "discrimination" based on their bad behavior, usually at the expense of hard-working people.

    Merely explaining the term, no judgements made. ;)

     Thank you for the explanation Wesley!

    0Reply
  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    7y
    Originally posted by @Wesley W.:
    Originally posted by @Ashley Zhang:

    Hi lynnette, thank you for the suggestion. May i ask you what is snow flake area? Thanks

     It's a derisive term for an area where the government and community make excuses for bad behavior by calling it a "disability" and enable that bad behavior by protecting said person from "discrimination" based on their bad behavior, usually at the expense of hard-working people.

    Merely explaining the term, no judgements made. ;)

     yes, thank you for answering.  I tried, but my post was deleted because I was considered a troll and the post was to cause division or something like that.  I did not get why, so glad you know how to answer so the right people are happy.  I probably need to just go away from BP and not make people unhappy.

    0Reply
  • Ashley Zhang
    OP
    Accountant · CO · Member since 2018 · 195 posts · 23 votes
    7y
    Originally posted by @Lynnette E.:
    Originally posted by @Wesley W.:
    Originally posted by @Ashley Zhang:

    Hi lynnette, thank you for the suggestion. May i ask you what is snow flake area? Thanks

     It's a derisive term for an area where the government and community make excuses for bad behavior by calling it a "disability" and enable that bad behavior by protecting said person from "discrimination" based on their bad behavior, usually at the expense of hard-working people.

    Merely explaining the term, no judgements made. ;)

     yes, thank you for answering.  I tried, but my post was deleted because I was considered a troll and the post was to cause division or something like that.  I did not get why, so glad you know how to answer so the right people are happy.  I probably need to just go away from BP and not make people unhappy.

     Hi lynette, thank you. I cannot believe your post was removed!! I am sorry about that. Now in these days, we just cannot tell the truth. 

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