Newbie 60-day Notice to Inherited Tenants

10 Replies

Hi Everyone

I recently bought my first duplex in Cleveland Heights, Ohio (House Hacking). During the inspection/property run through, I noticed one of the units stinks very bad and the place was not being kept clean at all. In addition, because I assumed the point of sale violation, there are some few items that needed to fixed in that unit (Stinky Unit). I must say that over the past three months the tenant has always paid the rent on time (The rent is $200 below the market rate). After thinking through the situation, I have drafted a letter I intend to give to the tenant. Please let me know what you think about the letter or share your experience dealing with similar situation. 

This letter is to inform you that we will not be renewing your lease. Your current lease ends on XXXXXXXXXX. You must vacate the apartment and return your keys no later than this date.

We will be in touch with you as the date approaches to schedule a final walk-through once majority of your items have been removed. You will be held financially responsible for any damage above typical wear and tear, as written in your lease agreement.

Should you have any questions, please contact us via either of the following methods:

Thanks 

What is your reason for terminating a tenant who pays the rent on time?   Is the tenant complaining about the items that need to be fixed or are they so serious that they must be addressed immediately?

Would getting them out and addressing these repairs and cleaning up the joint be worth the extra $200 you believe you could get for the unit?  Or would it be better to simply leave things are they are and continue to collect the current rent?

Gail

Hi Gail... Thanks for your comment. 

The main reason for not renewing the lease is that, I agreed to fixed up those items when the property was being transferred. Therefore, the city held my money in escrow ($5000) and the money will only be returned when the repairs are completed. 

While I believe addressing the repairs and cleaning up is capital intensive and 200 additional rent may not be rewarding (200/3500, that is around 6% return... It will help get money with city (in escrow) back... 

The other option may be to have a discussion with her about addressing the repairs while she still in the unit which I'm not sure is a good thing... ( With this option.. I may need to increase here rent about 200 bucks which I think will be huge on the tenant)

Another potential idea (depending upon the laws in your area) is raising rent to the market rate or plus some and see if they stay! That way, if they decide to stay, you’ll be compensated properly, so you can get a solid cleaner for when they do leave!

Alex...OK; makes sense that is goal is to remove the tenant to be able to address these repairs.  I have often found it difficult to do a significant amount of repairs when a tenant is residing in the rental unit.   Sometimes you start small and suddenly find the repair is more extensive that initially realized.  

With tenants in place it always seems to be a matter of working around their schedule, making sure you're monitoring what is going on when others are doing the repair so your tenant does not come back later complaining that something "walked" while others were in there doing the repair.  Sometimes you even have tenants that complain about you using "their" electricity and not compensating them for this.  In other times (depending on what the repairs are)  furniture has to be moved, etc. and there are complaints about personal items being damaged.  And finally, you sometimes get tenants who want to be moved to another location (i.e., a hotel) because their "quiet enjoyment" is being disrupted during the repairs (even if the repairs are to their benefit).

Just easier to have the place empty during the repair process.


Gail

"You missed the part about the unit being in bad shape, that's why he named it ....'stinky unit'"

No, I did not miss this part.   I've know landlords who realize their rental units aren't being kept clean to their standards and, frankly stink.   Some tenants just live like this and as long as they are not actively destroying the place (and they continue to pay rent) the landlord might do....nothing about this.

However, in this case the OP has funds being held in escrow until repairs are being addressed.  As I previously posted often these repairs are much easier done when a rental unit is empty.

Gail

Originally posted by @Bill Conlan :

Another potential idea (depending upon the laws in your area) is raising rent to the market rate or plus some and see if they stay! That way, if they decide to stay, you’ll be compensated properly, so you can get a solid cleaner for when they do leave!

I think this is a fantastic idea all around! 

Your plan is solid. They probably can't afford the increase and you don't want to keep. someone that can't keep it clean. 

My only concern is that you're saying you will inspect "once the majority of your items have been removed." You actually don't want to inspect until everything is out, they tell you they are done cleaning, and the keys are turned in. I personally recommend you give them a very specific date and time, like August 31st 2021 at 11:59 p.m.

I think you are the right path and Nathan G had good ideas about a specific date.  Since the state law says you have to provide a 30 day notice we add that verbiage specifically.  "This letter is a 30 day+ notice to inform you that..."  It is probably not a make or break, just trying to make it crystal clear with no room for misinterpretation.