Spokane, WA · Member since 2018 · 14 posts · 2 votes
My fiance and are under contract with a new rental. One of the tenants is month to month and we will need to move in within 60 days after closing. We are new to rental properties and are wondering what the best way is to remove the tenant? He's been there for 5 years and is on a fixed income and he's also a hoarder. Should we write a letter explaining that we need to move in as the new owners, or not go into any detail and just ask him to leave? Thanks!
Investor · Kingsport, TN · Member since 2016 · 412 posts · 254 votes
7y
@John Mark Waide Post/mail a letter explaining that you are the new landlord and you will not be renewing his lease for whatever month and that he is to be moved out by x date. Make sure you find out what the local laws are in regards to the amount of notice you are to give. In my area, it's 30 days notice that you will not be renewing.
Investor · Kingsport, TN · Member since 2016 · 412 posts · 254 votes
7y
@John Mark Waide Post/mail a letter explaining that you are the new landlord and you will not be renewing his lease for whatever month and that he is to be moved out by x date. Make sure you find out what the local laws are in regards to the amount of notice you are to give. In my area, it's 30 days notice that you will not be renewing.
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@John Mark Waide. Did you not put it in the contract that, that tenant needed to be out? Because now you are going to have a major headache if it’s on you, to get this tenant out
Spokane, WA · Member since 2018 · 14 posts · 2 votes
7y
@Caleb Heimsoth
We did originally, but if we did then the seller was going to keep the deposit. I decided that I would rather learn how to deal with this, since I need to learn eventually, and then use his deposit to help with cleaning and repairing instead of the deposit going to seller if the tenant is out by closing
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
@John Mark Waide Am I to understand you figure you'll eventually have to deal with a huge headache, so you voluntarily decided to have a headache now? I would have absolutely told the seller the unit must be delivered empty of tenant and empty of any personal belongings.
But, now that we are past that, then you simply give the tenant a notice to move out. Most likely 30 days, but you'll have to defer to the current lease now. The problem is; will the tenant actually leave? Will they take all their junk with them? Will you have to evict?
No. I mean I will need to learn how to deal with tenants and removing them anyway. I understand that it may be a headache, but I would rather use the deposit to help make repairs and clean his apt than have the seller keep his deposit. He's not in a lease. He's month to month.
Thr seller isn't willing to make any repairs and isn't wanting to put any money in this place. We've been going back and forth for the last few weeks. We originally said we wanted the tenant out by closing day, but he wanted earnest money doubled and non-refundable "since he's running the risk of losing a tenant if financing falls through". Of course I'm not doing that. Since he's not willing to put any money in this place, then I would prefer to have the headache of removing him and using his $500 deposit to help fix the unit up instead of the seller keeping the deposit and I am still left with a unit to fix and clean, except now I won't have the tenant's $500 deposit.
The seller has been frustrating to say the least, but the numbers work out. I'm completely new to being a landlord. However, i am pretty good with the numbers side of things. That is my strength
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
@John Mark Waide Something else to think about. Justifying the use of tenants deposit for "repairs", or for "clean up"? Does the seller have a move-in checklist on what the condition was at move-in? How will you justify repairs if you don't know that the tenant did the damage? Clean up is easy to justify if you need to remove the hoarders personal junk.
When I inherit tenants they pretty much get a "do over". I do a move-in checklist upon purchase. They are then responsible for any damage from when I purchased the property. But how do I know who broke the closet door? Was that hole behind the bathroom door there when they moved in? Did they do that? No idea.
Honestly, for $500, you might tell the tenant he will get all his money back if he moves out on time, and the place is simply delivered empty. Not quite a "cash for keys" scenario, but also could be a lot easier.
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
7y
John, please know this: you don't have to defend what you did or didn't do. Real Estate Investing isn't for wimps and it's never easy. And, congrats on your new rental.
Never share personal information with a tenant. The less they know about you, the happier you'll be. My advice on the tenant is:
1. Give notice immediately. Send a letter by certified mail and also deliver one in a sealed envelope to his door (tape it on the door).
2. If the contract calls for 30 days, give 30 days - no more. Be direct and concise; advise that the month-to-month contract will not be renewed and you are providing 30-days notice of termination. His last day will be (x) and you will be available to do the final exit walk with him on that day at (time).
3. And, be prepared for him to contact you. He may ask for more time; he may tell you that he's lived there for 5 years and you're taking away his home. Have your response ready...keep it short and factual: you're acting within the scope of the contract that hesigned, he may want to contact a rental realtor right away to find his next home, and that you will meet him for the final exit walk on the 30th day. Be careful about agreeing to more time because it more than likely will be met with another request for the same.
Will he leave? He just may. And, if he doesn't, you'll have 30 days to deal with what's next before your expected move-in.
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
7y
Seems like a massive amount of risk inheriting a tenant to try and keep their $500... that $500 will be nothing in the grand scheme of owning a property and I would have gladly given that up (if you even get to keep it in the end) for someone to remove an unwanted tenant. It may end up costing you thousands after trying to evict and dealing with that mess.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
7y
Have the current landlord deliver the standard notice to vacate in 30 days. It is a bigger risk that he doesn't leave and you have no where to go but I understand that doubling the earnest money and making it non-refundable might have convinced you. If it was just the $500 deposit, it could cost you that much if he doesn't leave and you have to evict him. You have to account for this tenants deposit and it cannot be used for wear and tear. So. for example, you can't charge the tenant for painting but you could charge him for excessive trash removal.
Patricia's post is good and she said it well. It would have been easier to have the current landlord evict the tenant and add a clause that you need to inspect the unit prior to possession. Naturally he would have dealt with the deposit as he'd have to invoice the tenant for any repairs. I get that you might have wanted to 'keep' it so you had it to repair any damages provided you had something to document the condition when the tenant moved in.
Contractor · Oxford, MA · Member since 2018 · 807 posts · 745 votes
7y
What's done is done, but the $500 is nothing compared to how much it will cost if he fights this through the courts. I don't know what the laws are there or if there are non-profits that are anti-landlord like they are here but if coached they can drag out the eviction process for up to a year and not pay a penny of rent during that time. Even if they're not coached it is common here for the judge to give them up to 6 months to find a place because they have lived there so long and it is inhumane to get that short of a notice. I hope it goes well for you but I wouldn't have risked it.
Spokane, WA · Member since 2018 · 14 posts · 2 votes
7y
Hmm, okay. Thanks for all of your replies! Perhaps I made a mistake, but I guess you live and learn. The tenant seems very nice and accommodating, but I guess you never really know. I do know that his apartment will need a lot of work and we plan on fixing it up once we move in. Oh well. We shall see what happens. Thanks again everyone!
You did not make a mistake you made a decisions based on your desires. You now follow through. Give notice, do not ever negotiate with a tenant just push him out the door. It will not be easy and hopefully you will not have to evict but, as @Patricia Steiner advises , do not budge. The biggest problem new investors have is dealing with emotions. Emotions are a business handicap, do not ever allow them to creep into your decision making process. if you do have to evict consider it a learning experience. It will not be your last eviction.
Study your state landlord tenant regulations. Memorise them and use them to your advantage. Knowing your state regulations will put you in a category superior to the majority of landlords. Most don't even know where to find them.
Investor · Schaumburg, IL · Member since 2015 · 219 posts · 104 votes
7y
@John Mark Waide
Sorry I did not read all the post. So what I am saying may have been mentioned.
The tenant deposit should be returned unless there is justification to retain it. Also, $500.00 isn't much. The cost and time of eviction can exceed this.
Offering Cash for Keys may be an option. But it may cost you more than the deposit amount.
You are looking to move I to the unit. When do you plan on moving in? You dont expect this unit to be move in ready once he is gone, do you?
You mentioned this tenant is on a fixed income, are they a senior citizen, retired or on disabled. Hopefully you can get him out without too much attention. Although, unlikely, this could comeback to kick you in the butt. They could claim that you are discriminating.
The only reason I see why I wouldn't want the tenant removed before closing is due to the non refundable deposit. If you are serious I would recommend, having the tenant removed prior to closing. I would be okay with Double EM but try to negotiate to remove the nonrefundable aspect of it.
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
7y
@John Mark Waide When the tenant contacts you and wants to stay . In your conversation mention to the tenant that you dont want to file for an eviction for their sake . Explain that once there is an eviction recorded against them they will have a hard time finding a landlord to rent to them
Rental Property Investor · Lutz, FL · Member since 2018 · 8 posts · 5 votes
7y
@John Mark Waide
Close on an empty space if you can still do it. $500 May actually be less than the true cost of the cleanup from a horder and the headache is not worth it.
@John Mark Waide Something else to think about. Justifying the use of tenants deposit for "repairs", or for "clean up"? Does the seller have a move-in checklist on what the condition was at move-in? How will you justify repairs if you don't know that the tenant did the damage? Clean up is easy to justify if you need to remove the hoarders personal junk.
When I inherit tenants they pretty much get a "do over". I do a move-in checklist upon purchase. They are then responsible for any damage from when I purchased the property. But how do I know who broke the closet door? Was that hole behind the bathroom door there when they moved in? Did they do that? No idea.
Honestly, for $500, you might tell the tenant he will get all his money back if he moves out on time, and the place is simply delivered empty. Not quite a "cash for keys" scenario, but also could be a lot easier.
I agree with this. You are throwing a fixed income person out of their five year home and keeping a measly $500?
Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
7y
@John Mark Waide - Ask for the unit to be vacant at closing. If you appear like you might cancel the contract the landlord will not want to give notice to his tenant and then have you not buy the property because he’s out $$. There can be a lot of hidden damage under possessions. My home inspector specifically excluded checking for structural cracks, damage, etc UNDER tenant belongings including area rugs in the garage. How do you do a walk through with all the junk? You will probably find a lot more than $500 in damage but you won’t be able to keep his money unless he leaves lots of trash, because you don’t have the original condition records and photos. I hope you’re getting a good deal and have budgeted for all new paint and flooring.
Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
7y
@John Mark Waide You should have made your offer contingent on having an empty unit on the day of closing. Put it on the existing landlord to get him out.
Spokane, WA · Member since 2018 · 14 posts · 2 votes
7y
Well, I'm not able to change it now. It's a triplex but his unit is the only one that's not under a lease and we have to move in since we have a conv. loan with 5% down.
I guess this seller has been burned by other potential buyers on this place and hasn't been willing to take on any risk, which has been very frustrating. Also, the market here is really hot and most places are selling at asking price or more (and not even good deals in my opinion). This is currently the best deal on the market, even including 30k in potential repairs I've budgeted in.
Obviously some people may not agree and I admit I'm pretty new, but I've ran the numbers over and over again, even setting aside different amounts for potential repairs and expenses, and this is still the best cash flowing multi-family on the market (that's within our price range).
Doubling the earnest money was fine by me, but I wasn't willing to make it non-refundable. And after I thought that the security deposit would help offset the cost of repairing that unit, at least a little bit. It may not be a whole lot in the grand scheme of things, but it's still $500. I may have made a mistake and should have probably made him gone by closing, but it's too late now. We shall see how easily he leaves. He did mention to us that the rent is getting too high for him and he will probably have to look for a new place.
Spokane, WA · Member since 2018 · 14 posts · 2 votes
7y
We all learn as newbies. The inspection is this week and I will have a better idea about the amount of needed repairs. His unit is difficult to assess, but the other 2 units don't have very much stuff in them
Spokane, WA · Member since 2018 · 14 posts · 2 votes
7y
So after looking over the leases, all of the lease agreements end by April. The lease for the studio ends at the end of March and the lease for the 1 bedroom ends at the end of April (and the 2 bedroom is month to month). We plan on closing at the end of March and we have 60 days from closing to move in. The 2 bedroom needs the most work and I would like to move into that and get it fixed. But after reading everyone's comments (and it is the unit with the highest rent), I'm thinking about removing one of the other tenants instead, perhaps the studio, and just receive the higher rent from the 2 bedroom and wait until he leaves willingly. Would it be better to empty out the 2 bedroom and get it rehabbed asap, or collect some rent first as a buffer and give it a little bit of time? Or we can move into one of the other units first, fix it up a little, and then remove him while we're living in one of the other units. Thanks again for everyone's advice! (I have a lot to learn about the "people" side of this)