All thanks in advance for anyone who replie! Very new to this as this is my first rental and the communities expertise is greatly appreciated!
Just bought property in South Lake Tahoe and decided to let the previous owners (Father-in-law / wife) live in the home. In order to protect ourselves we wanted to place a rental agreement, even though they are family members, we believe this is the best practice to let business be business when it comes towards the property. The wife isn't the best communicator and refuses to sign the rental agreement. So my question is what is the best course of action: 1) Give notice to vacate after X days if the rental agreement isn't signed? 2) Continue to rent if they are paying consistently?
Property Manager · Alpharetta, GA · Member since 2021 · 52 posts · 33 votes
5y
Yuck.
This is your wife's father, and his wife? What does that mean, "isn't the best communicator." Is she hostile, or just doesn't speak the language?
If they won't sign the new lease then the correct answer is them leaving, which will surely be explosive, but you knew that already.
Doing business with family is a lot like throwing yourself out of a moving car that you're driving. If you're happy collecting rent as is, that's fine, but doesn't leave you much protection should they decide something else is more important. Good luck!
Property Manager · Alpharetta, GA · Member since 2021 · 52 posts · 33 votes
5y
Yuck.
This is your wife's father, and his wife? What does that mean, "isn't the best communicator." Is she hostile, or just doesn't speak the language?
If they won't sign the new lease then the correct answer is them leaving, which will surely be explosive, but you knew that already.
Doing business with family is a lot like throwing yourself out of a moving car that you're driving. If you're happy collecting rent as is, that's fine, but doesn't leave you much protection should they decide something else is more important. Good luck!
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y
“If you sign this, we all agree on what’s going to happen in the future…” if you don’t sign this nobody knows.
But the sellers are/we’re your in laws? Did they give you a great deal because they were going to get to stay? Did you get a discount for not using a realtor? This is another get it all signed ahead of time.
Maybe a “here’s my lease with rent of x that stays the same for 1 or 2 years. Here’s my month to month deal, x +$500/mo and it can be raised with 60 days notice at anytime. “
@David K. This is my wife's father and his wife. When I mean not the best communicator there is a language barrier but also very hostile. Just trying to get her to the table to discuss anything about the property can get very difficult with tantrums.
I think at this point just having a rental agreement in place is the best move. If they sign then its strictly business with plenty of documentation. If they leave then even better. Thanks for the input
@Bill B. we got a great deal. My father in law was afraid of COVID so he wanted to move quickly as he didn't want it to go to his new wife (totally different story in itself). So we bought it and now we have a hostile tenant using everything in the book to be threating and manipulating my father in law. Nonetheless the rental agreement is in the works.
Where is your wife on all of this? If you were my investor I'd advise you to hold a fairly hard line in getting an agreement signed. Language barriers and outbursts don't help anyone, and are definitely a point of control. If your wife can be pressured by her father, and her father is living the "Happy wife, happy life" conundrum you could be in real trouble.
The rental contract should protect everyone including the tenants. I've never read a California Association of Realtors Lease for Residential Property, but I'm quite familiar with Georgia's...both states are a part of the National Assoc. of Realtor, at least I know GA is. In a GAR lease it lays out what happens if the tenant is late, or doesn't pay rent. What happens if there's damage. Who's responsible for what, both tenant and landlord. What will happen if each side breaks the lease, and who get's what, and in what time frame. Bounced checks, dispossessory, the works. It's all there.
If this breakdown in communication is going to be you pointing out that the lease clearly says the tenants are responsible for X, and then people start flipping out the you should really consider moving on.
The most common thing I say on a daily basis "What does the lease say?" It's black and white, and as many issues as you can see that way the better you'll be.
Get them to sign a strict lease setting expectations. If they won't, 60 days notice, and start the party.
Disclaimer: Georgia has been open and reopening from the pandemic for over a year, I have absolutely no idea where Cali is in this whole can't evict thing, and I do know you're about the most tenant friendly state there is. So perhaps you just skip over all my Georgia stuff and I just say that I'm rooting for ya to get something signed.