Raising rent from zero (and an apology)

Raising rent from zero (and an apology)

Member since 2020 · 23 posts · 5 votes

Yesterday I posted this question, but it was never answered because my original post was long and wordy. So here is the less wordy version of my question. My apologies. 

Let's say you acquire a house where there is a tenant at will who has no rental agreement and is paying zero rent. The market rate for this property is $2000-2500 a month. You are also covering all utilities.

This happened because the previous owner/resident let her live there for free and was quite right in the head and then died, and you were either dumb enough to purchase the property or unlucky enough to inherit it (in this case, the latter).

The tenant gets $900 a month social security, but is probably not too old to work.

Can the new owner raise her rent from zero to $2000 a month? Obviously, she cannot pay that amount. But will she still owe that money after she is, at some point, legally evicted? 

For argument's sake, let's assume that this person is an otherwise respectable individual who probably does not want her credit to get any worse than it already is from being evicted and further in debt.

Thank you.

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Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes
6y

I don't think your first step should be raising the rent... you are definitely already thinking ahead to having her vacate the property, so you should simply serve her notice to vacate in accordance with your local jurisdictional laws and procedures. It might be a 30 days notice or something different. Then, if and when she doesn't, you proceed with your local eviction procedure. This might start with a 3 day notice before you can file. 

Trying to create a lease agreement at $2000 is not going to get you into a better position than just starting out by asking her to leave, and can just delay the eviction process by months if she ends up with a valid lease in hand.

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  • Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes
    6y

    I don't think your first step should be raising the rent... you are definitely already thinking ahead to having her vacate the property, so you should simply serve her notice to vacate in accordance with your local jurisdictional laws and procedures. It might be a 30 days notice or something different. Then, if and when she doesn't, you proceed with your local eviction procedure. This might start with a 3 day notice before you can file. 

    Trying to create a lease agreement at $2000 is not going to get you into a better position than just starting out by asking her to leave, and can just delay the eviction process by months if she ends up with a valid lease in hand.

  • Member since 2020 · 23 posts · 5 votes
    6y

    I was actually planning to give the 30 day notice at the same time the rent goes into effect. AND was planning to inform her in writing that I was going to do these things 60 days before I did either. This, along with a cash-for-keys offer, might hopefully be enough to convince her that moving in with any one of the several immediate family that live locally might be the best option. Better than playing house at my expense. 

  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    I would not waste a single second trying to charge her rent. If she could afford it, she would already be paying something or at least making improvements to the property. Give her notice to vacate according to state laws. If she refuses, evict.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    Tell her what the rent will be starting on X day and that she needs to pay or move.

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    6y

    Try cash for keys. You might come out cheaper and faster to offer her 2k to leave.

  • Member since 2020 · 23 posts · 5 votes
    6y

    Cash for keys is hopefully going to be the main plan. The rent idea was just to give her added incentive to move. The deal with this lady is that she was once rather well to do. She and her first husband lived on our street when I was a kid. Now she is divorced and not so well-to-do, but likes playing the part of this sweet old lady living in a newly remodeled 3/2 house and a gardener. Lots of siblings and adult children who live locally. 

    But my brother and I want to sell the house as soon as we are able to do so. 

  • Member since 2020 · 23 posts · 5 votes
    6y
    Originally posted by @Nathan Gesner:

    I would not waste a single second trying to charge her rent. If she could afford it, she would already be paying something or at least making improvements to the property. Give her notice to vacate according to state laws. If she refuses, evict.

    That could take until next year. In CA, all evictions are suspended until 90 days after the emergency ends, whenever that may be. I can give her notice, I just can't do anything about it. 

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