Hello BP I Bought my first rental proprety 2 years ago here in the Worcester Massachussets area. Its a 3 family house and it came with a set of tennants... They where paying way under the market rent so I made a lease raising the rent closer to market rent. When I presented it to them they had no problem paying more but they never signed it. Its been a few months with late as usual payments but they stopped coming in. One of the tennants lost her job and is waiting for unemployment, or her stimulus check to come in. I'm all done with these tennants and I want to get them out. I really hope I can do this without a formal eviction. Any advice on what to say to them and how to go about having this conversation would be greatly appreciated.

I preface this by saying, you need to consult the laws of your state with regard to the eviction moratorium. However, if they didn't sign the lease and their original lease has expired, they are now holdover tenants and in most places are considered month to month. With that, you should be able to give them notice to vacate, per the terms of the lease agreement. When we send out a new lease or extension offer, we give the tenants a deadline to sign and if they don't, we advertise and show to get it re-rented.  

@Julie Hartman there was a hold on evictions but its only good until March 31. I'm just worried that they won't leave after I tell them to

Originally posted by @Peter Goeller :

@Julie Hartman there was a hold on evictions but its only good until March 31. I'm just worried that they won't leave after I tell them to

And they may not. However, you won't know until you reach out to them and get some sort of confirmation of their intentions. Depending on your state laws, you can let them know the lease is month to month and you are giving notice to vacate on X date because the lease has expired.  

 

@Julie Hartman so if they don't want to leave my only option is a formal eviction?

Originally posted by @Peter Goeller :

@Julie Hartman so if they don't want to leave my only option is a formal eviction?

Most likely. 

 

go talk to a lawyer, my understanding is the court in Worcester is open and processing cases right now. I've heard from a lawyer who was able to evict some that are not COVID related cases. Eviction may take up to two months right now based on my intel.

also, if they are month to month, you need to serve them notice to quit. (but now without a job, I doubt if they will be able to find another place to move into.....) possibly you can also offer cash for keys and offer to help them find alternatives or pay for their moving trucks. But don't pay them till they are out.  

Do you have a PM company for the property? they should guide you through this process and they typically work with specific lawyers for eviction.  

I would pay an Atty a few hundred to make the problem go away 

some people really don't want eviction on their records, it almost kills the possibility of finding housing in the future. you should serve them notice to quit first (without that, you can't move into eviction process anyways), they may just move out to be honest. I agree with Julie, get to know their intent. If they are difficult tenants, then consult a lawyer. 

@Peter Goeller it is time to have "the talk" with them.

It is not you, it's me. I can't pay my bills if you are not paying rent. You will need to move out, so I can rent it to a new tenant who is able to pay their bills. I am really hoping you leave on your own so we can part on good terms. If you don't move out, I will need to get my attorney involved, which means an eviction on your record. It is very difficult to find landlords who will rent to people with evictions on your record. I want you to find a home for your family, you just can't stay here.

The key to this "talk" is following it up with action. Hire an attorney and use a process server to serve them notice to vacate. Most people who don't go after the talk, will go once they are served notice. If they won't leave after getting served notice, you really want to go to court, because that is the only way to legally rights to your property. 

@Joanne Tsai I don't use a property management company if they don't leave on their own ill try that

@Michael Plante that is always a good plan

@Joanne Tsai I hope they raylise that they don't want an eviction on their record

First thing to do is to give notice that you are not renewing their lease. That way, if you have trouble with eviction you will have another avenue to get them out. If they haven't paid rent then you have another reason to remove them as they haven't abided by their terms of the rental agreement. You'll have to make sure you follow the rules of the eviction moratoria in your area.

@Bradley Padula thank you so much Brad I just got home and she talked to me and said that she should get her unemployment check within 2 weeks.

Originally posted by @Peter Goeller :

@Bradley Padula thank you so much Brad I just got home and she talked to me and said that she should get her unemployment check within 2 weeks.

If I had a dollar for every time I hear that, lol. If that is for March rent and they are 15 days behind, I’d recommend speaking with an attorney ASAP to start getting the appropriate paperwork and notices sent their way. This is to be careful and complete and set yourself up correctly in case the rent payments never come. If the tenant is planning on paying you, then they have nothing to worry about but the notices are to protect you. The longer you wait to start have an attorney start filing pay or quit  notice etc the longer it’ll take to evict them if it comes to that

Your tenant is buying time and you, by not getting your due diligence rolling, are giving your tenant free time. No one can know exactly when government assistance arrives, so you better serve the notice and indicate your tenant that you are only following due process. If your tenant can pay you during the served notice period your tenant has nothing to be worried of (you need to have this chat with your tenant), and also that she does not want eviction on her record. Wish you the best and hope for a favorable outcome for you!

@Peter Goeller cash for keys

@Peter Goeller at that point shouldn’t you be able to file an eviction through the courts.

@Joanne Tsai Great point!

When I had some inherited tenants I wanted gone in neighboring RI recently (criminal record, needed to fix up the unit) I actually gave them a heads up in advance, which a lot of people wouldn't recommend and I get why.  But I had "the talk" with them about 3 months in advance and told them it was coming and I was trying to give them as much heads up as possible.  Then around when I said it was going to happen, and I was ready to think about working on that unit I gave them the 30-day termination notice.  They did complain about financial situation so I offered up the remaining month as free rent and told them they would get the security deposit back the day they moved out as long as there was no gross and obvious damage.  I made them sign an agreement that the month of free rent was for moving costs and if they didn't move after the month they would owe the money as back rent.  That seemed to do the trick and they moved out without much of a fuss.  

I was told at the time by an attorney that I could send a termination notice and evict for being a hold-over tenant, but I decided it was well worth the one month's rent to try and make it civil and smooth and to help them transition.  I wouldn't have been able to file an eviction until that one month was up anyway.  It did work but you have to figure out if they are going to be honest and what their intentions are.

New member/first post - I haven't read all of the replies, but in listening to the first 70 podcasts, I found a tactic that might help you: "Pay the Tenant to Leave". I have a tenant that is months behind on rent and I told him he was being evicted and that I would be bringing boxes to him on said day. I delivered the boxes and told him to tell me if he needed more. I followed that up with text messages and reminded him of the date he was to be gone by. He didn't know it, but I was going to rent a U-Haul for him to move as well it needed.

Needless to say, I received a call from another rental company and told them he was being evicted and within 24 hrs my tenant deposited money into my account towards his debt. He also informed me that he had increased his hour of work and would be able to pay up. I set up a bi-monthly payment for him instead of a one time $750 payment and told him further late payments would lead to eviction.

The podcast also talked about offering the tenant money to move from the apartment with the thought being, give them $250 to move and you can start collecting full rent the following month instead of them just squatting on you. I was also open to using this tactic if it had become necessary. 

I live in an owner friendly state when it comes to the courts, but it still requires me taking off work to go to courthouse and to attend the court date. Good luck to you in your case and in your investment future.

@John B. Waugaman Jr. great insight, and welcome to BP!