Renter lied about living in the house - anything I can do?

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Renter lied about living in the house - anything I can do?

Jeff Castro
Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes

Renter said it would be her family living in the house. She signed a 2 year lease. On the contract clearly states no sub-lease.

She terminated her lease early at only 9 months out of the 2 year lease.

The house was a mess. The carpet ruined from dog urine. Holes everywhere. Also has poop all over the walls. I can't tell if from human or dog.. either way disgusting. 

We then noticed wheel chair marks on the carpets, doors, etc. There are also toilet seats that have handles which are meant for elderly folk. (the lady that was supposed to be living there was mid 30's). 

We also started receiving packages of boxes and boxes and boxes of medicine. I mean enough to supply a small clinic. 

We also saw leftover paperwork in the drawers for someone addressed to a person whose name i didn't recognize at this address. 

So in conclusion.. we've got proof that this lady was running a hospice home health at our house! I'm not even sure if she was living there herself or having hospice patients there full time.


Question for the smart folks at BP --- what can I do? Can I go after her for breaking lease? Subleasing and running an authorized business in my house? Someone help.. I've spent a few thousand on repairs and multiple carpet cleans.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
5y

At this point if she's out, you can take all the expenses to clean it up out of her deposit and if that doesn't cover it, take her to small claims court for the damages.  Make sure you take photos of everything.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    At this point if she's out, you can take all the expenses to clean it up out of her deposit and if that doesn't cover it, take her to small claims court for the damages.  Make sure you take photos of everything.

    10Reply
  • Jeff Castro
    OP
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    5y

    @Theresa Harris

    Thanks. Yeah was thinking the same. Wish something can be done about using the house to run a hospice business. Complete fraud on the contract sheesh

    0Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    5y

    @Jeff Castro

    Just find a new tenant. Probably should replace the carpets.

    5Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    5y

    With a new tenant My wife inspects at the 90 day mark and the 6 month mark. That is the only way you will see what's going on; after 6 months if it is all good we go to 6 month inspections and then annual. 

    We check for the obvious and look under sinks and check for leaky toilets. You have to do it and make sure your PM, if you have one, is doing it. I do not know of any other way. Whether you do a video, or pics and a check list does not matter. Do it and get it signed off by the tenant. 

    At this point I would put my energy and resources to getting the place rent ready. Yeah you can sue etc. do that if you want, but getting it ready to market is job one. Don't cut corners here do a thorough job or the odor etc. may not be gone.

    8Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    5y

    You're lucky she left. Chalk it up as a lesson learned and move on. Explore your options with an attorney, if you sue her sue the business she has if it is legit.

    6Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y
    Originally posted by @Jeff Castro:

    @Theresa Harris

    Thanks. Yeah was thinking the same. Wish something can be done about using the house to run a hospice business. Complete fraud on the contract sheesh

     All you can do is learn what to do next time.  When the next tenant moves in, do a few inspections early on.  Do one after a month to see if they've settled in, and then a few months after that.  Otherwise, you  should go in twice a year to make sure smoke detectors and CO alarms are working, furnace filters have been changed and gutters are clean.

    2Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    Document everything with pictures. You can never have too many. Hire professionals to handle cleaning and repairs. Keep all the receipts. Contact the tenant with an itemized list of charges, including unpaid rent and utilities right up until a new renter takes over. Give her 30 days to pay. If she fails to pay, take her to court.

    Consider hiring a property manager that does a better job of screening, inspects the property regularly, and knows how to handle renters that treat property like this.

    The DIY Landlord Book4.7247 Reviews
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    10Reply
  • Todd Pultz
    Rental Property Investor · Dayton, OH · Member since 2019 · 293 posts · 440 votes
    5y

    @Jeff Castro frustrating for sure, but be happy she’s gone, get the place ready and get a new tenant. You could take her to court for damages, but do you think she has money even if you win? Is it worth the energy?

    I am curious though how you drew the conclusion she was running a hospice home care there? You said “a name” you didn’t recognize. Playing devils advocate maybe she just had grandma living with her. Maybe she was committing a prescription fraud scheme. You just don’t know and you certainly did not provide enough information to draw the conclusion you did. Regardless, that has no bearing on filing suit for damages and the court does not deal with assumptions.

    While your upset, make the right decision for your business and not your emotions! Sometimes we eat s%^* because it’s a better business decision. Good luck

    4Reply
  • Jeff Castro
    OP
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    5y

    @Bjorn Ahlblad agree with you on the inspection. We didn’t inspect once on this tenant. Probably a big mistake

    1Reply
  • Jeff Castro
    OP
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    5y

    @Michael Noto when I checked her employment it was all done through Venmo or Zelle. So basically under the table. But she does get business from a hospice. Do you think I can go after the hospice??

    1Reply
  • Jeff Castro
    OP
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    5y

    @Theresa Harris I’m curious. If I did the inspection while she was “living” at the house and found out all of this. Could I evict for just suspicion that she is running this or do I actually have to have evidence?

    1Reply
  • Jeff Castro
    OP
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    5y

    @Nathan G. Yup I totally see the value in a quality property manager.

    1Reply
  • Jeff Castro
    OP
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    5y

    @Todd Pultz makes total sense. definitely not trying to get emotions involved. The thing that is making this personal for us is that this was our first primary residence.. so maybe that has some some sentiments to that.

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y

    @Jeff Castro even if she was running a hospice, it doesn't change your situation versus if she was living there. Please take this as constructive feedback. This situation is the result of mistakes you made. Learn from them so it doesn't happen again:

    1. Don't accept illegitimate employment sources. Zelle and Venmo are not sources of employment verification. Either she has a W2 job you can verify salary with her employer or she has a business and you need verify her income on two years worth of taxes. If she has under the table income, it doesn't count. All it proves is she is a dishonest person, which means she will have no problem being dishonest with you.

    2. Never sign two year leases on new tenants. One year should be your standard or even month-to-month if you see risk in the person you are approving. I have had several people break lease terms over the years and they were always the ones who said "I will be there for years". Lease terms protect tenants, not landlords. With a one year term, you can just not renew or increase rent if the tenant is trouble.  

    3. Do regular inspections. For a new tenant it is good to do one three or six months into the relationship. After that annual is probably fine. Some people do them as often as quarterly. If you did the inspection and observed something that lead you to believe other people were living there, you could issue a notice to cure. Basically she has to fix the lease violation or move out. My lease also prohibits running a business in my property. Most likely a hospice would need licensing, so you could have reported her to the state. That could help with getting her out of the property. 

    At this point, take photographs of all the damage. If there are pill bottles or other evidence of a hospice, take photographs. Some of this may help if you have to take her to court to get money. Odds are good she is gone and you will never see a dime. Had you screened better and found a person with a W2, odds are better you could track them down and get a judgement / payment. Don't stress too much. Learn your lesson and move on. I have made worse mistakes.

    6Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y
    Originally posted by @Jeff Castro:

    @Theresa Harris I’m curious. If I did the inspection while she was “living” at the house and found out all of this. Could I evict for just suspicion that she is running this or do I actually have to have evidence?

     If she was in violation of the lease, yes you could.

    0Reply
  • Dan DiFilippoBusiness Member
    Real Estate Broker · Fayetteville, NC · Member since 2020 · 251 posts · 244 votes
    5y

    @Jeff Castro why didn't your property manager do something about this?

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    1Reply
  • Brian BoydPro Member
    USA · Member since 2019 · 305 posts · 536 votes
    5y

    You are getting good advice here. I am sorry that you are going through this and I know that no one here wants to trade places with you over this kind of tenant issue. That being said, Michael and Nathan made some really good points. Talk to a lawyer to learn your options, it may not be something you do not want to pursue but at least have the information to make that decision. 

    Bjorn also had a really good idea to do an inspection at 90 days. Maybe from this lesson we all learned a new management practice point we can all utilize. Regardless, she is gone now and you can move forward. 

    Good Luck and keep us posted on how you choose to deal with this.

    2Reply
  • Jeff Castro
    OP
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    5y
    Originally posted by @Joe Splitrock:

    @Jeff Castro even if she was running a hospice, it doesn't change your situation versus if she was living there. Please take this as constructive feedback. This situation is the result of mistakes you made. Learn from them so it doesn't happen again:

    1. Don't accept illegitimate employment sources. Zelle and Venmo are not sources of employment verification. Either she has a W2 job you can verify salary with her employer or she has a business and you need verify her income on two years worth of taxes. If she has under the table income, it doesn't count. All it proves is she is a dishonest person, which means she will have no problem being dishonest with you.

    2. Never sign two year leases on new tenants. One year should be your standard or even month-to-month if you see risk in the person you are approving. I have had several people break lease terms over the years and they were always the ones who said "I will be there for years". Lease terms protect tenants, not landlords. With a one year term, you can just not renew or increase rent if the tenant is trouble.  

    3. Do regular inspections. For a new tenant it is good to do one three or six months into the relationship. After that annual is probably fine. Some people do them as often as quarterly. If you did the inspection and observed something that lead you to believe other people were living there, you could issue a notice to cure. Basically she has to fix the lease violation or move out. My lease also prohibits running a business in my property. Most likely a hospice would need licensing, so you could have reported her to the state. That could help with getting her out of the property. 

    At this point, take photographs of all the damage. If there are pill bottles or other evidence of a hospice, take photographs. Some of this may help if you have to take her to court to get money. Odds are good she is gone and you will never see a dime. Had you screened better and found a person with a W2, odds are better you could track them down and get a judgement / payment. Don't stress too much. Learn your lesson and move on. I have made worse mistakes.

    This is great advice and great points! Thank you. Yeah, this time I'm screening more thorough and asking for personal references. Definitely not going to make that mistake again. 

    1Reply
  • Jeff Castro
    OP
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    5y
    Originally posted by @Dan DiFilippo:

    @Jeff Castro why didn't your property manager do something about this?

     no property manager :(

    I was just breaking even on the property and no cash flow to cover PM unfortunately.

    1Reply
  • Jeff Castro
    OP
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    5y
    Originally posted by @Brian Boyd:

    You are getting good advice here. I am sorry that you are going through this and I know that no one here wants to trade places with you over this kind of tenant issue. That being said, Michael and Nathan made some really good points. Talk to a lawyer to learn your options, it may not be something you do not want to pursue but at least have the information to make that decision. 

    Bjorn also had a really good idea to do an inspection at 90 days. Maybe from this lesson we all learned a new management practice point we can all utilize. Regardless, she is gone now and you can move forward. 

    Good Luck and keep us posted on how you choose to deal with this.

     Thank you. Yes, agreed. Great advice here from these folks... now if there was  BP forum for every aspect of our life! lol

    1Reply
  • Nick Rinnert
    Investor · Marysville, WA · Member since 2015 · 19 posts · 9 votes
    5y

    Your going to go broke by the time anything happens with a tenant like that. CUT your losses and move forward. Stick to 1 year terms and use a better screening service .  Find new tenants A.S.A.P the deposit and first and last month rent  with help with your loss.  

    1Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    Wowzers! A hospice? That's wild. 

    I'd say you try to collect as much as you can from this tenant and send the rest to collections. 

    Just when you think you've heard it all as an investor?!! 

    2Reply
  • Michael Robbins
    Property Manager · Henderson, NV · Member since 2018 · 501 posts · 317 votes
    5y

    I would keep it simple and focus on the damage to the property.  Put together a detailed account of all the damages and cost of removing any modifications made to the property.  It is important to take pictures before/after, keep receipts, and when you send the balance due letter to the tenant have everything itemized.  At this point with the tenant already having moved out any claims regarding the unauthorized roommates, subleasing, etc.. might just muddle your argument on the damages.  The going after on the money spent on damages is the winning move.  

    1Reply
  • Jeff Castro
    OP
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    5y

    @Nick Rinnert thanks. Agreed. Yup my other mistake was the fact that I collected first month and last month rent and no deposit. So obviously this lady used that towards her last month. No deposit. Lesson learned.

    0Reply
  • Jeff Castro
    OP
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    5y

    @Ola Dantis yup horrible. Liar liar tenant.. I wish there is a way to warn others about this lady. I feel for the next houses she’s going to destroy.

    0Reply
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