Renew lease or move on?

Question

Over the last several years, tenant has made several complaints about issues in the house. Each time we take action, through property management, to have contractors solve/fix issue.  Unfortunately nothing has worked so far.  Just prior to our 60 day notice to vacate window negotiations to extend the lease started with us, landlord, raising rent 5.5%.  Rent has not increased for the 4 years the tenant has been in the home. Tenant agreed and signed the renewal, we have not signed the renewal yet.

This rent increase seemingly upset the tenant enough to have her start to bring up more issue with the home, to her credit, actual issues.  The crawl space needs extensive moisture work.  This is likely the root cause of some of the other issues we have been battling for the last several years.  She has also threatened us with not paying rent, which in VA she cannot legally do and threaten us with the fact that “They know I work for a lawyer”.

We chose to take swift action concerning the moisture in the crawl space.  Work to remediate will likely begin once final two estimates come in on Monday.

We also chose to separate with the current tenant and sent the 60 Notice to Vacate.  Move out date is 30 Sept 19.  1 Month after school starts.  Notice to Vacate was not given 60 days prior to original lease termination date due to intent to extend lease.

Tenant is now begging to stay and renew.  She has no other options.  Offering rent at a 9% increase and now offering to replace carpet.

Do I stick with the move out or renew?  If we chose to renew, I feel the tenant would be bitter for the entire year and return to her original behavior.

Options:

• Renew but counter with an even higher rent.  Possibly keep the carpet replacement.
• Hold Fast and continue with her moveout.

Patricia Steiner · Answer

Geez...what price makes her "a keeper?" One of my investors was faced with a tenant who was just not worth it and asked me to intervene. I find that the ones who complain the most actually are people who like being miserable - and stay or go, they're going to keep being miserable. So better the tenant be miserable with someone else somewhere else while you find a tenant who will be thrilled with their new home.

And, kudos to you for stepping in so quickly to solve the moisture issue...it will save your property from a lot of future issues.

Mike Franco · Answer

I was faced with a similar situation recently. I let the tenant go.

4 year tenant, always paid on time, super clean, then she brought up asbestos, which did not affect the living space.

She complained a little bit, which I put up with, but always told me about issues that legit needed fixing, like plumbing leaks. I'm thankful for that, at least. Then there were other petty complaints like a tiny bit of air leaking in the old aluminum windows.

I decided to let her go and re-rent at market rates. I was already 11% below market.I lost a month of rent and other expenses, but will recoup this loss by the end of the year with the new tenants.

Tenants can't withhold rent unless for habitability issues.

Ricardo R. · Answer

@Nathan Atkinson just the fact that she has threatened you about not paying her rent, would be reason enough not to renew. You are a Landlord i.e. a business owner, the Tenant’s personal issues are not your own. Your responsibility is to provide a safe and habitable environment to your Tenant and to provide a clear path of communication such as how far out they need to give you notice of renewal or non-renewal which you have. She will most likely return to the original behavior..., being ‘difficult to work with and threatening’ is not a protected class, I would hold what you have and proceed with the move out.

Nathan Atkinson · Answer

@Anthony Wick, Thank you for your reply too.

I supposed we could be seen as waffling, appreciate the constructive criticism.  The tenant has been great for the last 4 years.  Upon the end of the current lease, 31 Aug 19, we decided to raise rent.  We offered the current tenant a one year lease at the increased amount.  It was at this time that she brought up the Maint issue, a new one but similar to the past one, and started her threats.  If any waffling occurred it was us sending the vacate notice after we offered her another lease and she got nasty.  I agree with you, had I known she was going to act this way I would not have offered her another lease.  This was not typical behavior seen over the last 4 years.

I was not bothered by her threats as I know I have done everything to remedy the maintenance issues.  I suppose I could be responsible for not hiring contractors who fixed the symptoms and not the cause, but that is in hindsight and we were fixing what we thought to be the problem.  There is also no guarantee that this next fix, which is extensive, will solve the problem either but, like the previous fixes it is our best course of action based on the current information.

What are the chances things go smooth?  I know I will solve the moisture issue, somehow.  I expect the current work to do that.  What I don't know is if we "waffle" a second time, and renew the lease, how will she respond and treat us later.  Do we sign the original renewal request for the 5.5% increase or take her up on her counter offer of 9% increase plus carpet?  I don't know?

Thank for your time and reply!

Nate

Nathan Atkinson · Answer

Patricia,

Thank you so much for your reply.  I'm leaning towards letting her go.

It's so unfortunate as she has been a fantastic tenant for the last 4 years.  She doesn't seem to be the type that "enjoys being miserable".  Never late on rent, her complaints about the house have all been valid, including this last one.  I think she was just upset the rent was going up.  Single mom, two kids, custody battle, etc.  I suspect her budget is pretty thin as it is.  It's very apparent she did not think we would call her bluff.

I also feel for her.  If we choose to continue with the vacate I'm not sure she can afford to move or find housing, especially in a relatively short period of time.  I'm also fairly certain that housing options in the same school district for the kids are very limited at her price point.

I guess my largest fear about renewing with her would be her trying to retaliate, somehow, months down the road once this initial stress has subsided.

If anyone has specific experience with that I'd really appreciate hearing about it.

Thank you again for your thoughts and reply!

Nate

Anthony Wick · Answer

@Nathan Atkinson

Well, I probably wouldn’t have agree to renew her in the first place. But wait. It also kind of sounds like you weren’t very attentive in fixing actual problems. And you bungled this with; “ok let’s renew, no let’s not, well maybe at a higher price” waffling.

What the chances things will go smooth with the tenant now that you are fixing the problems? That’s the question to answer first.

Renew lease or move on?

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