Great deal, bad tenants

12 Replies

Hello,

I’m 22 and a first time investor, looking to house hack with my partner.

I found a great duplex for house hacking and decided to do pre-inspection to be competitive. However, the tenants would not allow us in on one side.

The tenant opened the window to speak with our agent and inspector and we could hear him yell names at the top of his lungs at them and say many curse words and slam the window very aggressively.

The property was absolutely perfect on all fronts other than the tenants behavior. Should we have called it off based on the tenant? How seriously should we take a tenants behavior?

Context: The property was very hot and had many viewings in the span of 3 days of being on the market. They had just had a pre-inspection the day prior from 10am-5pm and many walk throughs of their home. There was a miscommunication on the listing agents part, she had told us we could pre-inspect when the tenant had not approved of the timing do to family plans at home. The tenant had just renewed to stay for another year and alleging had a history of paying on time etc. They were also paying exactly market value.

We need guidance! Thank you in advance!

Ok let me get this right, the property is in great shape, the tenant pays on time, takes good care of the place and is paying market rates. The tenant got upset because the tenant had a right to be upset. Sounds like you have a tenant that follows the rules and expects others to do the same. I would be fine with this tenant. Your title "Bad Tenants" is very misleading. Cheers!

Originally posted by @Alyssa Miller :

Hello,

I’m 22 and a first time investor, looking to house hack with my partner.

I found a great duplex for house hacking and decided to do pre-inspection to be competitive. However, the tenants would not allow us in on one side.

The tenant opened the window to speak with our agent and inspector and we could hear him yell names at the top of his lungs at them and say many curse words and slam the window very aggressively.

The property was absolutely perfect on all fronts other than the tenants behavior. Should we have called it off based on the tenant? How seriously should we take a tenants behavior?

Context: The property was very hot and had many viewings in the span of 3 days of being on the market. They had just had a pre-inspection the day prior from 10am-5pm and many walk throughs of their home. There was a miscommunication on the listing agents part, she had told us we could pre-inspect when the tenant had not approved of the timing do to family plans at home. The tenant had just renewed to stay for another year and alleging had a history of paying on time etc. They were also paying exactly market value.

We need guidance! Thank you in advance!

 If its a home run, then you should probably buy it and remove the tenants.However you could use this as a negotiating tool or put it back on the sellers to remove before you purchase. 

Its hard to believe that good paying tenants would not allow you in, other then fear of being kicked out at the first opportunity of a new owner. 

@Alyssa Miller . It seems some might have missed the part about the tenant renewing for another year. This is quite dumb of the seller, btw. You aren't getting rid of that tenant....for a year. And maybe you don't have to. I would require an estoppel certificate from tenants and seller to determine if they really are paying on time. If they are, and the place is not destroyed, it sounds like you'll be just fine on this purchase. What is the story on the other side? That's the side that you'd have to move into. If they also have a longer term lease (anything that is not expiring in probably 60 days), then you really have no unit to move into.

I'm sorry you had this experience. I would second the Estoppel Agreement idea that @Anthony Wick suggested and also understand that you're not getting rid of these tenants due to A) the new lease and B) COVID restrictions still in place. If it's a home-run and you want the place then a simple letter to them apologizing for the misunderstanding and recognizing how much of a nuisance it is to have your home traipsed through by investors (especially during a pandemic) is. I would also be upset if I was say, throwing a birthday party for my nephew and strangers came knocking on the door unexpectedly wanting to walk through. As Joe said, these are not "bad tenants" - this seems to be someone justifiably upset at strangers trying to interrupt their life and their home. A sincere apology can go a long way.

Estopple Letters are always recommended on any transfer of rental properties.  I need everyone who has responded to get rid of the tenant to explain WHY.

@Bjorn Ahlblad @Zachary Ray @Steven Wilson @Stephen J Davis     Before you spout off keep this in mind as I quote from the OP:  "They had just had a pre-inspection the day prior from 10am-5pm and many walk throughs of their home. There was a miscommunication on the listing agents part, she had told us we could pre-inspect when the tenant had not approved of the timing do to family plans at home"

Now consider you are the tenant who just signed a year extension.  Then you are either told or not told to what extent but you are EXPECTED TO OPEN YOUR HOUSE UP FOR INSPECTION FOR 7HOURS the previous day!!!!!  AND now they are supposed to open their house again and be happy about that the very next day and they were not told about it!!!!!!   

So now you recommend getting rid of a on-time paying tenant, who keeps the unit in GREAT shape, just because he was upset at having to show his unit again.  ARE YOU GUYS OUT OF YOUR MIND!!!      

Originally posted by @Steven Wilson :
Originally posted by @Alyssa Miller:

Hello,

I’m 22 and a first time investor, looking to house hack with my partner.

I found a great duplex for house hacking and decided to do pre-inspection to be competitive. However, the tenants would not allow us in on one side.

The tenant opened the window to speak with our agent and inspector and we could hear him yell names at the top of his lungs at them and say many curse words and slam the window very aggressively.

The property was absolutely perfect on all fronts other than the tenants behavior. Should we have called it off based on the tenant? How seriously should we take a tenants behavior?

Context: The property was very hot and had many viewings in the span of 3 days of being on the market. They had just had a pre-inspection the day prior from 10am-5pm and many walk throughs of their home. There was a miscommunication on the listing agents part, she had told us we could pre-inspect when the tenant had not approved of the timing do to family plans at home. The tenant had just renewed to stay for another year and alleging had a history of paying on time etc. They were also paying exactly market value.

We need guidance! Thank you in advance!

 If its a home run, then you should probably buy it and remove the tenants.However you could use this as a negotiating tool or put it back on the sellers to remove before you purchase. 

Its hard to believe that good paying tenants would not allow you in, other then fear of being kicked out at the first opportunity of a new owner. 

 I have yet to purchase a home run, with or without good tenants, lol. You can always change the tenant. Think long term here and buy it.

Originally posted by @Mike Lee :
Originally posted by @Steven Wilson:
Originally posted by @Alyssa Miller:

Hello,

I’m 22 and a first time investor, looking to house hack with my partner.

I found a great duplex for house hacking and decided to do pre-inspection to be competitive. However, the tenants would not allow us in on one side.

The tenant opened the window to speak with our agent and inspector and we could hear him yell names at the top of his lungs at them and say many curse words and slam the window very aggressively.

The property was absolutely perfect on all fronts other than the tenants behavior. Should we have called it off based on the tenant? How seriously should we take a tenants behavior?

Context: The property was very hot and had many viewings in the span of 3 days of being on the market. They had just had a pre-inspection the day prior from 10am-5pm and many walk throughs of their home. There was a miscommunication on the listing agents part, she had told us we could pre-inspect when the tenant had not approved of the timing do to family plans at home. The tenant had just renewed to stay for another year and alleging had a history of paying on time etc. They were also paying exactly market value.

We need guidance! Thank you in advance!

 If its a home run, then you should probably buy it and remove the tenants.However you could use this as a negotiating tool or put it back on the sellers to remove before you purchase. 

Its hard to believe that good paying tenants would not allow you in, other then fear of being kicked out at the first opportunity of a new owner. 

 I have yet to purchase a home run, with or without good tenants, lol. You can always change the tenant. Think long term here and buy it.

 Tenants can make or break a deal, terrible tenants can drive you mad!

It sounds like in this case, the tenants are just fed-up with miscommunication.

The tenants are part of the deal. So if they're terrible, that just brings the deal down a notch as you know they will be tough to deal with and you very well may have to evict them. Is the deal so good that it can still handle a hit like that? I would say it probably is but it's hard to tell from afar. You just need to see them as a component of the deal and view everything in its totality.