Inherited Tenants and the lack of leases

Inherited Tenants and the lack of leases

Flipper/Rehabber · Denver, CO · Member since 2016 · 56 posts · 21 votes

I recently closed on a house with some inherited tenants.

Both have pets with no pet addendums or security deposits or increases in rents for these pets. 

One of these tenants is breaking the counties rules on # of pets allowed.

-I am up for keeping them especially in this time we are in but wanted to get some peoples input on this.

Can I retroactively charge security deposits moving forward for the pets that currently live with these tenants... i.e. they are re-signing a new lease with me I'm going to tack this on. ( I think I answered my own question here)

-I was also going to inform them of the state statute and if they don't comply give them a notice to vacate the premises or contact the county for an inspection of the premises.

Second, 

Both the tenants have stuff strung out through the side yards as part of an agreement with the old landlord. 

Apparent they have agreements to utilize things not in their lease.(the shed, closets, etc)

They currently use these things but If they want to continue to do that moving forward i think i am going to charge them or have them move their stuff 


Has anyone ever dealt with this?

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Real Estate Investor · Chattahoochee, FL · Member since 2014 · 133 posts · 107 votes
6y

1. Be careful with causing any tension right now. No evictions and if you pour vinegar you may get some back in the way of not receiving rent. 

2. Advise the tenant who has the unlawful number of pets that you would like this issue resolved at a time of your choosing, but again, your only real recourse is to call the city or county and have them intervene which is less likely right now. You may have to bite the bullet on this until the pandemic is adequately resolved. 

3. I can't tell you what to do, but if I had troublesome tenants I'd be interested in moving on. I learned recently that not all inherited tenants are bad, but some aren't worth the trouble it takes to collect the rent. I don't want trouble, so, as soon as I figure it out I let go. I think you're in a good spot as you are currently in a month-to-month lease agreement. Thus, it'll be easier to transition once the crisis is over. Here in North Florida I continue to have good luck finding tenants despite the crisis. I'm selling a property and it is getting some looks. I don't believe you'll have a hard time finding new tenants, the main problem will be getting the old ones out. 

Good luck. 

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  • Real Estate Investor · Chattahoochee, FL · Member since 2014 · 133 posts · 107 votes
    6y

    1. Be careful with causing any tension right now. No evictions and if you pour vinegar you may get some back in the way of not receiving rent. 

    2. Advise the tenant who has the unlawful number of pets that you would like this issue resolved at a time of your choosing, but again, your only real recourse is to call the city or county and have them intervene which is less likely right now. You may have to bite the bullet on this until the pandemic is adequately resolved. 

    3. I can't tell you what to do, but if I had troublesome tenants I'd be interested in moving on. I learned recently that not all inherited tenants are bad, but some aren't worth the trouble it takes to collect the rent. I don't want trouble, so, as soon as I figure it out I let go. I think you're in a good spot as you are currently in a month-to-month lease agreement. Thus, it'll be easier to transition once the crisis is over. Here in North Florida I continue to have good luck finding tenants despite the crisis. I'm selling a property and it is getting some looks. I don't believe you'll have a hard time finding new tenants, the main problem will be getting the old ones out. 

    Good luck. 

  • Rental Property Investor · Saint Petersburg, FL · Member since 2020 · 7 posts · 2 votes
    6y

    I am just starting out and find myself in a similar situation. One inherited tenant has a room up to my waist in stuff. Has his lawn business junk and beer cans trashing the front porch.  As long as I am getting rent I am going to hold comment because there are no evictions being processed and police are not completing writs of possession. Keep me posted on how things progress and best of luck. 

  • Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    6y

    I’m going to keep a copy and paste handy for problem “inherited tenants”.

    “Have the unit delivered empty and broom clean”. Yes, you won’t have immediate rents. But, it is often best to have a month or two of vacancy than months upon months of problems.

  • Rental Property Investor · Colorado Springs, CO · Member since 2020 · 433 posts · 284 votes
    6y

    We had a similar problem with a duplex we bought several years ago.

    When we bought it, junk cars, motorcycle parts, trash and debris, all that fun stuff

    1. Get the new leases(yours) signed

    2.clearly define the property rules (in writing) pets/vehicles, use of out buildings

    3.be fair and firm, and manage them, up or out over the next year or so.

    Took us some time, but we got rid of the problem tenants, remodeled and increased rent, and cash flow.

    One tenant is still with us, almost ten years later.

    Hope that helps..

  • Real Estate Agent · Addison, IL · Member since 2015 · 185 posts · 88 votes
    6y

    I think you’re on the right track depending on the type of leases you have.

    I would send a new lease 60-90 days before expiration with the new terms and if they have a lot of issues with it and won’t comply then you can just let their lease expire and find someone new.

    I had a similar issue and had them sign a new lease, but their habits didn’t really change and they didn’t follow some of the rules. Since they paid I didn’t make a big deal about it until the lease was up and just let it expire.

  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    6y

    Usually I just reach out to them and get them on a new written lease.

  • Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    Hi @Account Closed, 

    First things first, if you are going to have them sign a lease, make sure it is month to month. The last thing you want to do is sign a 12-month lease and find out in the second month that you wish you had never rented to them. Having a 12-month lease will certainly make it more difficult to remove them should you want to do that.

    To answer some of your questions, yes, if you sign a new lease you can have them agree to new terms such as a security deposit. You can also address your concerns regarding the sheds and the side yards. Make sure you understand that they of course do not have to sign this lease and can very well pick up and move out.

    As others have mentioned, these are unprecedented times, so be very careful about upsetting them too much to the point that they decide to stop paying rent but continue to live there. 

    In regards to the state and county statutes keep in mind that those may fall on you as the property owner, rather than the tenant. I know that most towns in Connecticut go after the owner of the property for blight related issues and not necessarily the tenant. As an owner out here we relay this in the lease, but ultimately it is our responsibility in most cases.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y
    Originally posted by @Account Closed:

    I recently closed on a house with some inherited tenants.

    Both have pets with no pet addendums or security deposits or increases in rents for these pets. 

    One of these tenants is breaking the counties rules on # of pets allowed.

    -I am up for keeping them especially in this time we are in but wanted to get some peoples input on this.

    Can I retroactively charge security deposits moving forward for the pets that currently live with these tenants... i.e. they are re-signing a new lease with me I'm going to tack this on. ( I think I answered my own question here)

    -I was also going to inform them of the state statute and if they don't comply give them a notice to vacate the premises or contact the county for an inspection of the premises.

    Second, 

    Both the tenants have stuff strung out through the side yards as part of an agreement with the old landlord. 

    Apparent they have agreements to utilize things not in their lease.(the shed, closets, etc)

    They currently use these things but If they want to continue to do that moving forward i think i am going to charge them or have them move their stuff 


    Has anyone ever dealt with this?

     Yes, thousands of us have dealt with this. The tenants were poorly managed by the Seller or his property manager and now you have to clean up. We're in the middle of an alleged pandemic that's going to kill half the population, so let everything sit for now. Use the extra time to study the market and develop a game plan.

    I recommend getting rid of the tenants. The summer season is almost upon us and that's the best time to find new tenants at market rate. When the COVID-19 smoke clears, hit them with a 30-day notice (or whatever your state allows) and get rid of them. Be prepared for them to fight and refuse to leave or whine or try to negotiate something. Don't give in. Get rid of them, clean the places up, put them back on the market at current market rates, and find well-screened tenants to place under your lease with your rules.

    Any attempt to "train" the tenant to your policies will be seen as an intrusion and they will resent you. It's not worth the hassle.

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