Lender · Portland, OR · Member since 2019 · 28 posts · 19 votes
Hello everyone,
I feel like maybe I’m being a softy, however I wanted some input from the more experienced landlords out there on how they would/have handled this situation.
So recently I closed and owner occupy on a 4-plex. The plex is occupied by 4 Latino families that have all been there 10+ years. I sent the month to month termination letter with one months rent (825$) and 3 months to vacate.
I received a call this morning from the tenants literally in tears and broken English asking
“why us?” And “we will be homeless, no where for us to go, please we pay more for rent to stay”
Needless to say My heart broke.
How would a professional manager go through with this?
@Dennis M. Ew. They are humans. Have you no heart, as obviously this new landlord does? While the law is on his side, we should all strive to treat fellow humans with dignity and respect. And we all need a roof over our heads. That’s the business we’re in - providing that basic human need.
Great strategies there. All I know is that if I don’t reside there it’s considered bank fraud. Not looking to mess around there. My current residence already has deposit to hold and 12 month lease for when this tenant moves out. I like the air bnb idea.
I agree. The story gets even more sympathetic the more I communicate with them. I’m doing my best to help them in the transition, however i already have deposit to hold and lease ready for my current residence so they do have to go.
Great strategies there. All I know is that if I don’t reside there it’s considered bank fraud. Not looking to mess around there. My current residence already has deposit to hold and 12 month lease for when this tenant moves out. I like the air bnb idea.
Luke I didn't see if you were talking about air bnb on your 4plex. Do your research, I just closed on one and the city will not allow STRs on multi family properties. I went in knowing that.
I like your replies. You have become my online mentor 😊.
@Account Closed Hey she was mine first! Even if she thinks I'm a dud LL! ;)
You're killing me lol. I'm such a cantankerous old lady now. But, it's nice to have people fighting over me :-)
Nobody here asking questions is a dud. Ignore the cranky old lady when she gets a burr under her saddle. I can be such an obnoxious know-it-all. I admit it. Bless me father for I have sinned.....oh, never mind......
Laws are laws. I’ve rented to LEGAL immigrants that came here the correct way and had a SSN and and an American dream. That is a beautiful thing. What sucks is anyone telling you that there is nothing wrong with renting to illegals because of blah blah pay rent on time because they have no choices blah blah. Purely enabling illegal activity because of MONEY and GREED while trying to sound humanitarian.
Renting to illegals is contributing to The problem. Using a handyman that u know is illegal is being part of the problem. You will always find good tenants and handymen that are here the lawful way.
Luke, you sound like a kind-hearted, compassionate, thoughtful person. It appears that you think of other and will do things to your detriment to help your fellow man. There are few people like you in this world and even fewer in real estate. You're going to be destroyed in this business. Get a PM to take over this property ASAP. Seriously. Take some of your profits and donate them to charity if it makes you feel better, but this place needs to be run as a business.
@Luke Dilorenzo I would consult an attorney. You sign an "intent" agreement to live in the property and you've shown that "intent" by providing a move out notice and consultation of an attorney. Intents can change based on circumstances. Evictions can take a long time, so prolong it as much as you can. The bank probably won't check up on you. Just my 2 cents.
@Al Pat @Eric C. Yeah it will hurt his loan requirements. It’s called loan fraud. It’s a serious crime. The bank has many ways to find out where somebody lives the simplest of which is where they send your statement. The address that’s listed on your credit score and on and on. He has no choice but to move in that property. He should never have bought it fully occupied. It’s a mess now. They have tenant rights too. I’m not sure what they are but they do have a lease. If he didn’t get estoppel’s sighted prior to closing that makes it worse. On the flip side they are undocumented. That’s a topic we don’t need to discuss here. RR
@Michael King. Most loans the owner occupancy requirement is for 1 year. The bank can and will find out if it’s owner occupied. The OP faces loan fraud if he’s caught. Pretty serious charge. Not worth the risk. RR
@Ahmer Zaidi. You don’t sight an intent form you apply for the loan as an owner occupied residence. It’s loan fraud and banks do check on it. It’s very serious if you do get caught. It’s all fun and games until you get caught. RR
At one point in my life I was an illegal immigrant. Student Visa expired and had to wait for for one year for USIS to sort my residency out. I had to change accommodation during that time and I was working for cash. My new landlord a rental company didnt care. They wished me well and rented to me. I ended up living there for 5 years and that was because the company decided to turn the units to condos and sell. If you have to evict let it not be because of their status but rather because you have to. It is your property.
You must treat everyone equally, with dignity and care. If the tenants you mean to move out are or are not illegal aliens/cancer patients/battered women or men/unicorns/whatever the lender requires you to inhabit the building, so you do it. This is a business.
Gotta cut your teeth in this business, or it will cut you, and your wallet. Deeply.
@Ahmer Zaidi. You don’t sight an intent form you apply for the loan as an owner occupied residence. It’s loan fraud and banks do check on it. It’s very serious if you do get caught. It’s all fun and games until you get caught. RR
Well I was definitely not suggesting committing fraud. Mortgage occupancy clause promises the lender that you intend to live in the property as your primary residence. And intent matters a lot in law. If the buyer has a good enough attorney and can prove intent the lender will just have to be patient.
They mentioned they would pay more money. In theory, if you raise the rent to "market" rates, things are equitable. You also are from Oregon. If this property is in Oregon, there are new rent control laws that prohibit how much you can raise rent in a year. Get familiar with local law, especially with the recent changes.