Tenant With a Bunch of Cats Paying Under Market. Keep or Not?

Question

Hey All,

I took ownership of a 7 unit bout a year ago and have steadily been renovating each unit. I have 1 left I want to do which probably needs it the most out of all of them. The tenant who lives their is on a fixed income with a roommate and has like 7 cats. It's a small 1 bed 1 bath place and pretty filthy. I need to get in there and renovate because there are some health concerns (mold).

This tenant faces some mental issues and by far is my least favorite tenant that I currently have. I try to be as kind as I can but she is very abrasive almost every time I visit the property, and I visit a lot considering I am renovating units.

She has been there for about 10 years. Once the unit is renovated I told her we would re raising 100 bucks, she immediately started breaking down, hysterically.

Here is my dilemma, I will be leaving the area soon to military orders. I have to get in there an renovate as it will be much easier to manage while I am still here. I originally told her she could temporarily move into one of the renovated units and then move back in when we are done renovating hers...but I am now having second thoughts on that proposal.

She pays on time which is great but gives me the most headaches, we are also trying to get away from cats in our places as they cause too much damage. She says due to her fixed income she can't pay $100 more but she also has no where else to go that will take her pets so she is going to be homeless if I kick her out.

The way I see it I have 3 options which would you choose?

1. Leave her in it and not raise rent and not renovate

2. Move her into a temporary unit and move her back in after reno and raise rent partially.

3. Ask her to vacate, but then have the burden on my mind of potentially making her homeless.

John Warren · Answer

@Tariq B. speak to some local organizations that work with mentally ill, homeless, disabled and otherwise challenged folks. There are groups here in Chicago that will help with rapid rehousing, etc.  The long term tenant that pays, but is otherwise uncooperative, is one of the most challenging ones to deal with. They often feel entitled to the space due to length of tenancy and can be very, very hard to manage. Your best bet is to do the human thing by helping this person find another space, but also do the correct business decision which is to terminate this business relationship.

Marian Smith · Answer

@Tariq B.  Sounds like the only way she can keep all 7 cats and rent is to remain at your place.  Cats are not children.  Institute a 1 pet policy (which means two because she will hide one) .  Let her choose 7 cats and homeless or give up 5.  Her choice.  That is not unreasonable.  Unreasonable is expecting to be able to house 7 cats in a small multiunit rental.  Does she have family?  Maybe they need a cat or 6.

Maybe the city has a pet ordinance to back you up.

Douglas Holden · Answer

@Tariq B.

Adopt a pet policy: charge a set fee/pet/month

( i.e. $10 per pet per month)

This is a policy you should have anyway. It will certainly limit the number of pets you have and will potentially help solve your issue as she may move out.

Good luck

JD Martin · Answer

Depends on the layout and what you are spending to renovate and your long-term plans. If you make $100 extra per month from her (or someone else), what is the return vs. just leaving it as is? It makes no sense to renovate her unit and put her back in it. You remediate the exact problem - mold comes from water leaks/intrusion - and forget about the rest of it. Unless her filth affects the rest of the tenants or the impression of the property. In that case she has to go.

Anthony Wick · Answer

@Tariq B.

Option 4: Hire a PM and let them do their job.

Adam Martin · Answer

Of the scenarios you list only 1 and 3 make sense to review.  If her unit is filthy why would you temporarily move her into a renovated unit to destroy and then give her a newly renovated unit which she can't afford and will also destroy.  The purpose of renovation is typically higher rents so if she can't afford the higher rents she certainly doesn't get a renovation.  The damage to the unit is done so she probably won't make it worse so I would be tempted to leave it as is if I wanted to keep her and she may be a decent long term tenant.  She knows she has nowhere else to go so you may even be able to get a moderate increase of 25-50 and leave the place as is.  Her personality does worry me however because she is difficult with you, have any other tenants complained about her.  This would be hard for me to tolerate and they would get a firm talking to that this was unacceptable behavior and if it continues she can expect a non renewal if we can't keep it professional.  If you do decide to put your foot down though consider your location and any eviction moratoriums going around in case she does not leave.