Tenant won't let me show house to potential buyers
Rental Property Investor · Palm Bay, FL · Member since 2009 · 511 posts · 290 votes
My tenant won't give me permission to show my house to potential buyers. I am marketing it for sale WITH the rental agreement. This was explained to her, that she does not need to leave the property and that the investor that purchases it will want her to stay, but she is uncooperative.
Florida Statute says we need to send a letter stating she needs to "cure" this issue within 7 days or else we can begin the eviction process. We did this. The 7th day is tomorrow, I really do not want to go through the eviction process, especially since it's taking so long in my county.
Has anyone had this problem and been successful in getting your tenant to cooperate? Any advice would be appreciated.
Well, if you get nasty with her and try eviction, she might mess the place up. Add to that the cost of eviction and it might be financially better to just wait her out, depending on your cirmumstances. It sounds like she is just going to be difficult. How much time is left on the lease?
You can use your knowledge of her love of the house to your advantage. These are the options I would give her:
1) You can remain uncooperative and when your lease expires I will not renew it and you will have 0 chance of living here in the future.
2) You can cooperate and allow me to sell this house to another investor who will let you stay as long as you pay rent on time and might even be willing to owner finance the house to you.
3) You can provide the down payment I need to justify owner financing and I'll sell the house to you.
Make it clear to her that the house will get sold to someone and that you will not allow anyone to prevent you from doing what you want to do with YOUR property.
So, she might think that she's going to look out for her own interest and now your in a tough spot. But the reality is that she's in a tough spot too. All you need is time. She needs a place to live.
Can't recommend anything with regards to FL statute (haven't looked at it); but, does your lease say anything about this?
In Ohio most landlords I know will enter the premises to show the unit AFTER giving reasonable notice - just like one gives reasonable notice before entering premises to repair something or inspect something.
Also, I have recommend to a landlord that as long as they have an inspection clause in the lease, the landlord can enter to inspect the premises with a potential new tenant/buyer.
I agree with Keith. All my leases have a clause allowing entry with reasonable notice. You would think with a notice of eviction she would come around without having to evict.
Not only that, the eviction and loss of tenant may deter your buyers, be careful going down that road.
Not sure why the tenant would be so uncooperative, however, you should have in your lease some clause stating you have the right (upon written notice) to enter your home for inspections, smoke detector checks, etc. USe them, the tenant can not refuse this.
Having just freshly read a bunch of posts in the Landlording forum, I'll bet the place is a mess inside - that's commonly why they don't want anybody in their unit. Or they moved somebody additional into the unit without landlord's consent. Or possibly something illegal going on inside ...
yea I agree with Steve Babiak
Must be a reason why they don't want you in there. Chances are it's just very messy and don't want you to see how they live. I'm surprised that they would rather get evicted then just allow you to show within reasonable time frame. This makes you appreciate good tenants!
Thanks for the responses. Actually, I went to the property two weeks ago to fix something and it is in the same condition I first rented it to her.
Here's the problem, she's in love with the house and wants to purchase it. When we first rented it to her she said she was going to sign the year rental lease, but she really was interested in buying it and that she was waiting on a settlement so she would give us a good down payment if we financed the rest. She asked us to give her until March. Well, March came and went, and April came and went, so we decided it was time to put the property on the market so we could get our money out of it.
We placed a call to her when we decided this, just to be courteous, and she lost it. She did get offered a settlement, but it wasn't as much as she wanted to she denied it and told us she has to "look out for her best interest". Well - so do I.
I know we do have that inspection clause in our lease, so I do know we are protected by that, but if I call her and tell her I'm going to take someone to see it and she doesn't let me in and makes it difficult for me, then it's just as Will said, it will deter my buyers. I know that I'm getting a lot of interest in the property right now because it is tenant occupied and people interested in that.
Is she there all the time? Is there any time when you know she isn't usually there? I know you would have to inform her you are coming in that day, but you don't need to tell her the exact time. You also don't need to tell her you are showing a prospective buyer. Just some thoughts to make it as smooth as possible under the circumstances....
This sounds like a good idea. Here are the rules about entering the unit in Florida. It does not state that the tenant has to be present:
http://www.800helpfla.com/landlord_text.html
The only problem I can foresee is the tenant falsely claiming something was stolen from the house while the buyer was there looking.
If this idea doesn't work, maybe you could pay her a few hundred dollars to be out by X date, and avoid the hassle of an eviction?
I don't see why having a vacant unit would be a turnoff to investors. Personally I would rather be able to screen and choose the tenant myself than be stuck with someone who may not have been screened. But maybe other people like to do things differently.
Well, if you get nasty with her and try eviction, she might mess the place up. Add to that the cost of eviction and it might be financially better to just wait her out, depending on your cirmumstances. It sounds like she is just going to be difficult. How much time is left on the lease?
You can use your knowledge of her love of the house to your advantage. These are the options I would give her:
1) You can remain uncooperative and when your lease expires I will not renew it and you will have 0 chance of living here in the future.
2) You can cooperate and allow me to sell this house to another investor who will let you stay as long as you pay rent on time and might even be willing to owner finance the house to you.
3) You can provide the down payment I need to justify owner financing and I'll sell the house to you.
Make it clear to her that the house will get sold to someone and that you will not allow anyone to prevent you from doing what you want to do with YOUR property.
So, she might think that she's going to look out for her own interest and now your in a tough spot. But the reality is that she's in a tough spot too. All you need is time. She needs a place to live.
Brian has posted some great responses/options you can give to your tenant. I would also speak to some potential investor buyers and see if they have any interest in possibly selling on an owner carried note in the near future to the existing tenant. This may be attractive to some buyers and if you can work out a deal upfront with a buyer, you can inform your client that upon sale to the new owner, they will offer it to them for purchase on an owner carried note just the same as you were going to do.
From the tenant's point of view, she has nothing to gain by letting you show it. The new owner might raise the rent or mover her out.
So, offer to make it worth her while. Bribe her. If someone buys it, promise to pay her some money. It works.
Maybe another approach to take would be this - use your lease terms to enter the property yourself to take some pictures and/or video of the interior. If you are marketing to investors, they should be more receptive to writing an offer on the contingency that it is subject to a walk through inspection after the offer is written. An investor might also understand your position better, as well as understanding why the tenant is being difficult and being less concerned about a tenant that is putting up a fuss.
This approach accomplishes a few things - it keeps things friendlier with the tenant longer, so you don't lose your income while marketing the property; it allows you to focus on marketing right now before having to potentially deal with an eviction; it allows you to present a "real" scenario to the tenant after you have accepted a contingent offer, ie., if the prospective new owner is somebody that specializes in owner-financing or lease options, it might prove to be a BETTER option than the tenants current situation with you looking to get paid and move on rather than wanting to be the bank.
This approach also reduces the unknowns and what ifs that you currently have. It also helps minimize disruptions of the tenant's quiet enjoyment of the property while you try to sell it, and possibly allows you a little "quiet enjoyment" of the sale process without ticking off your tenant and starting a rumble.
At the end of the day, if I were in your shoes, I would try to kick the eviction ball down the road. It may still come to that, but it likely will not. Coming at the problem from a different angle may calm everybody down and leave everybody on much better terms.
I agree with Adam. Take a lot of video and pictures to show prospective buyers hopefully that will reduce some needless showings.
From the tenant's perspective, any people you want to bring into their home are unwelcome. They present opportunities for damage, theft, and reduce the quiet enjoyment of their home. I have been a renter and always insisted in an addendum that says that there is no right to enter except in cases of emergency. But, in those cases where I was not able to get such an addendum, I was able to get concessions from the landlord as described below.
I think it is quite reasonable for you to want to sell your home while it is rented, but it is also reasonable to address tenant's concerns. I recommend that the following be adhered to:
1. Visits to show the home to prospective buyers will be limited to no more than one showing per month if there are 6 months or more on the lease term, no more than two showings per month at 3 months, and no more than 4 showings per month if less than two months. This addresses the concern that tenants have regarding a tidal wave of unwelcome visitors.
2. Visits shall be visual only. Visitors are prohibited from opening closets, drawers, cupboards, etc. This addresses the concern that tenants have regarding intrusion of privacy and possible damage to their property.
3. Prospective visitors must be accompanied by the tenant at all times and may not separate themselves from the tenant. This addresses the concern that prospective visitors have an easier opportunity to steal the tenant's property.
While the lease may give the landlord the right to make the tenant's life miserable, the above are reasonable accommodations that the landlord can offer the tenant to show that they are sincerely trying to work with the tenant to show respect for the privacy, safety, and other concerns that tenants have. And, making these concessions will help you get a cooperative tenant who will be more likely to help sell the property.
Regards,
Mark Yelka
Pricilla, did you ever find a soloution to your tenant issue? We're you able to get the tenant to allow potential home buyers onto the property?
I did. I told her I was conducting inspections :)
Would it work to maybe take her to lunch WITH the prospective buyers? Give her the chance to meet them *out* of the hotbed first. Maybe if you gained her trust and let her know it would be better for her to stay & rent in the house she loves instead of getting evicted from it.
If she pays rent on time and you have no other issue, you are kinda stuck. However, if she is ever late on rent payments, even by 1 day, I would have her removed. After all, who's name is on the mortgage?
I guess sometimes drastic measures need to be taken.
Priscilla,
Not sure what Florida law requires, as I practice law in Indiana. However, I always put a damage clause in my lease agreement that if she prohibits entry in a scenario such as this that it is grounds for immediate eviction, as well as punitive damages not to exceed $1,000 as it has caused me damage and potential sale.
In reviewing the lease agreement with the tenant, I always make them initial this clause in the agreement when executing it. I also put this language in bold and cap letters in the agreement so they understand the consequences. I have been very successful in Indiana small claims court in being awarded this type of damage.
Also, you may want to check her credit score to see how close she may be to buying the home. She may be able to purchase it which would solve your problem. In Indiana, Indiana was just awarded millions of dollars from HUD to help individuals purchase homes, regardless if you are a first time buyer or not. You only need a 650 credit score. There are three mortgage companies that have been pre-approved through HUD for this special program, wherein if the individual does not have a 650 credit score but signs up to go through a credit counseling class to get their score to 650 or above, the State of Indiana will provide up to 4% of their downpayment through the grant monies. This 4% is forgiven forever! It's a great program!! Check with your state to see whether they have a similar program.
The 501(c)(3) real estate focused not-for-profit organization I started in Indianapolis has partnered with another local not-for-profit that provides this credit counseling. We have been very successful with this program thus far. I am also using this tool to help investors find RTOs to move properties after getting their ROI in the Indy area.
@Priscilla Z. I feel that i having that due diligence period with the buyer would allow them to back out if it was necessary. I am glad you got the chance to show the home, did you work out a deal?
@Jynell Berkshire I was curious what program you were referring to allowing a 4% grant, and I started reading up on some of the indianapolis market and actually checked out your NFP, its always good to see people giving back to their community! Would that still apply for a multi-unit property or only SFH buyers?
I just recently bought my first house at the beginning of Aug. Before that I was renting a townhouse from a very nice older guy but had no clue on how to be a landlord. He got into financial trouble and we went through a short sale. During the process, his agent would just send people over to view the house without making appointments and gave out my phone number to schedule showings. The first couple of times I allowed the property to be viewed but after that and the non stop phone calls I stopped everything. I reminded my landlord per his own lease that I didn't have to let anyone into the property until the last 60 days of the lease.
We still had over 6 months remaining. It even got to the point where I flat out refused to show to one couple who showed up with an agent as they were standing on the doorstep begging. I didn't feel bad at all turning them away. My house was never dirty or in any type of state where I would be embarrased to show anyone. I just was simply tired of getting harassed every waking moment of the day for showings.
Stephen,
The grant program I was referring to is called "The Next Home Program". The grant program does have income limits. For example, in Indianapolis/Marion County, the county's income limits are $66,000 for 1-2 persons and $75,900 for 3+ persons.
The program is not property specific from income specific. Sorry, I should have clarified that.
Do your best to work with the tenant; offer to show the unit perhaps just once a week. I've had tenants that were planning to move out, were cooperative at first, and then also wearied of the showing process. I also had a tenant that flat out said we couldn't show the unit, despite our lease having all the necessary verbiage to support it. We told her we would give her the appropriate notice, and then show up with a police escort to go in - an "assisted entry" I think it's called in FL. We did it once, and after that had no further trouble.
Here is the Florida statue concerning landlord right to enter......
83.53?Landlord’s access to dwelling unit.—
(1)?The tenant shall not unreasonably withhold consent to the landlord to enter the dwelling unit from time to time in order to inspect the premises; make necessary or agreed repairs, decorations, alterations, or improvements; supply agreed services; or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors.(2)?The landlord may enter the dwelling unit at any time for the protection or preservation of the premises. The landlord may enter the dwelling unit upon reasonable notice to the tenant and at a reasonable time for the purpose of repair of the premises. “Reasonable notice” for the purpose of repair is notice given at least 12 hours prior to the entry, and reasonable time for the purpose of repair shall be between the hours of 7:30 a.m. and 8:00 p.m. The landlord may enter the dwelling unit when necessary for the further purposes set forth in subsection (1) under any of the following circumstances:
(a)?With the consent of the tenant;(b)?In case of emergency;
(c)?When the tenant unreasonably withholds consent; or
(d)?If the tenant is absent from the premises for a period of time equal to one-half the time for periodic rental payments. If the rent is current and the tenant notifies the landlord of an intended absence, then the landlord may enter only with the consent of the tenant or for the protection or preservation of the premises.
(3)?The landlord shall not abuse the right of access nor use it to harass the tenant.
History.—s. 2, ch. 73-330; s. 5, ch. 87-195; s. 4, ch. 93-255; s. 446, ch. 95-147.