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Updated about 6 years ago on . Most recent reply

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Kent F.
  • Rental Property Investor
  • Durham, NC
0
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5
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Reduce liability when non-renewing a tenant

Kent F.
  • Rental Property Investor
  • Durham, NC
Posted

I’m closing on a triplex in a few weeks and I plan on not renewing one of the tenants right away after closing. How could I minimize the chance of this tenant claiming some sort of discrimination or unfair treatment since I’d be leaving the other tenants in place?

 This tenant’s lease is month-to-month. 

Some of the reasons I would like to not renew them are: 

-They’re messy with lots of junk outside their unit and in the lawn. 

-Their monthly rent is $50 lower than the other two units. 

-A few months ago I observed a city employee turning off their water. This gives me concern about their ability to pay the rent in the future.

-Renovating would result in a $250 rent increase for that unit.

Any advice on how to prevent legal trouble and interpersonal conflict in this situation would be greatly appreciated.

Last year I bought the triplex next door to this one, I didn’t renew any of the tenants, and then renovated all three units. They were not happy but at least nobody could feel singled out. 

Thanks!

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As long as your state codes allow you to non renew M2M, provided you give proper legal notice, you do not need to concern yourself with tenants making frivolous claims. They have no legal grounds. Give notice and ignore their complaints. You do not need a reason to non renew.

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