Existing tenant - changing property types
Rental Property Investor · Harrisonburg, VA · Member since 2020 · 1 post · 1 vote
Existing tenant - changing property types
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FL · Member since 2018 · 81 posts · 68 votes
5yI disagree entirely with the premise of @Account Closed 's question posed as a statement. The person selling the home is ending the relationship with the tenant, not the new buyer. Despite being posted in "good faith" the question basically was "why are you all so evil"? With knowing nothing about the specifics of the situation it assumed an awful lot. Post a new question in a separate thread if you genuinely want to know what goes on in the minds of STR investors.
It was @Amanda Welch 's first post in our community and she deserves to know that she is not evil for working hard, saving a lot of money over a long period of time and risking it all on a potentially money-losing venture in an effort to secure her financial future and not be a burden on the rest of society.
15 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes5y
Certified mail is typically necessary when you need to prove something in court, or the state law requires it. This is just a beginning conversation, so a standard letter will suffice. Just be honest, professional, and short. You don't need to spend a lot of time trying to justify your decision to them.
The DIY Landlord Book4.7248 Reviews - 5yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
When does their lease run out? You will likely have to honor the duration of their lease.
- 5yLien VuongBusiness MemberReal Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
I would contact them and have a phone call before you send the letter. As this is their home for many years, I think it would be most humane to address it that way and then send a certified letter to verify the Notice to Quit. I would offer them 60 days if possible so that they will find the property, 30 days is often too short.
The Elle Group5154 Reviews - Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes5y
You need to honor the lease they have now. Hopefully you got a copy of that so you know when their lease ends. If it is month to month be sure to check all local laws regarding ending tenancy especially now with the eviction moratorium happening.
i do however agree with Eric that this is the exact thing that creates so much hate for landlords. So this can be added to the thread of "why do people hate LLs so much"
- 5yBenjamin AakerPro MemberRental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
@Amanda Welch thank you for posting your question. You didn't say whether you looked at the current lease beforehand or not, but this is something typically done before closing. You are going to be the property owner and you have a right to do anything you want with it within the confines of the law. Before sending your letter, the seller should be happy to let you have a conversation with the current tenant. If not, then consider not buying the property.
@Account Closed thank you for posting a clearly-difficult comment. Landlords should always be considering how their actions affect their tenants. They should take the time to learn about the tenant's needs and expectations. Market conditions, taxes, expenses all change and for the landlord to be able to offer reasonable housing, he/she has to re-evaluate from time-to-time. I can't speak for everyone but I think it is rarely a craving for money, as you say. We are all looking for ways to secure our futures, even during a pandemic.
- FL · Member since 2018 · 81 posts · 68 votes5y
I disagree entirely with the premise of @Account Closed 's question posed as a statement. The person selling the home is ending the relationship with the tenant, not the new buyer. Despite being posted in "good faith" the question basically was "why are you all so evil"? With knowing nothing about the specifics of the situation it assumed an awful lot. Post a new question in a separate thread if you genuinely want to know what goes on in the minds of STR investors.
It was @Amanda Welch 's first post in our community and she deserves to know that she is not evil for working hard, saving a lot of money over a long period of time and risking it all on a potentially money-losing venture in an effort to secure her financial future and not be a burden on the rest of society.
- Rental Property Investor · Lakewood, OH · Member since 2016 · 119 posts · 156 votes5y
Originally posted by @Account Closed:
I’m asking this in all serious good faith—why do so many of you people do this? You buy something where someone has lived for years and then pull the floor out from under them and tell them they have to move in the middle of a pandemic.
And secondly when you turn housing stock into short term rentals you have just created an artificial scarcity in the market for that area. And you’re basically running an unlicensed and unregulated hotel.
why wouldn’t you just let the person keep living there and rent the rest of the units as short term? The person could even help look after the place when someone does stay. Why is the answer always to throw someone out.
and now of all the times to do it. During a pandemic when landlords are bragging and cheerfully planning ways to make it harder and more expensive for people to Rent?
is there no other way to satisfy your craving for money?
short term rentals displace people, remove good housing from the market and shut out anyone who could have lived there or bought the property themselves and they exacerbate gentrification and contribute to ruining neighborhoods because all the residents who may have had a sense of community are replaced by out of towners who don’t care or even bother usually to preserve any semblance of community because they have no ties to it.
again I am genuinely curious as to the thought process that goes into this. I want to understand why you all do what you do and I’m willing to be persuaded but honestly it just seems incredibly exploitative, immoral, and greedy. Do you ever stop to think about the lives and communities you destroy?Because my job is to provide for my family.
I have not personally done this but would have no problems doing so.
as for hurting the community? My airbnbs help my community. I promote many local businesses and actually was just speaking to some of my guests who are going to be spending money tomorrow at our local soap company. If anything my airbnbs strengthen my community as my average stay is 2.3 days and no one cooks they all eat at local joints.
I'm a bit curious though- if the tenant is paying significantly below market rent is it also immoral to raise the rate?
at the end of the day signing a lease is good for that period of time. If at the end of that I want to turn my property into an airbnb that's my business. I put MY money down.
if you are so concerned please go build some low income apartments to help people during these hard times.
- Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes5y
@Account Closed, I have to agree, your comments are not in good faith and seem to be justified by your own opinions you state as facts. If you approach it with an open mind, not suggesting folks are evil and destroy neighborhoods you would understand better, you may not agree, but you would not call them evil or greedy.
I own a vacation rental. I bought and fixed up a property that was in bad shape. It reeked of cigarette smoke so bad I had wash walls multiple times before I could even paint them. The neighbor on one side offered me 1/3 of my purchase price and said it was the value of the land minus the cost of tearing the place down. He wanted to make a large garage for himself on it. That place is sweet now and beautiful. The neighbors on one side love my VR. I have often come by and see them having barbeques with my guests during the summer. I have terminated renters before. It does not make me evil. Some places I wanted to fix up, some places I wanted to put to a different use. I gave them plenty of notice. I am currently moving one set of renters out in order to make another VR. I gave 3 months notice. Guess what? They had planned to move out and had never given me even a weeks notice, when there new place place fell through I still let them stay for the remaining 2 months I had initially promised. Is a tenant evil for moving out of a rental into a cheaper or nicer one? No, and neither is a landlord. Is a grocery store owner evil for not giving free or cheap food to poor people? No. Is he evil for marking food prices up 100 or 150% over his cost? No. Is a lumberjack evil for cutting down trees to provide lumber to build houses with or to make toiler paper with? No. There are some folks who get ahead by being evil, but the vast majority of folks are honest and hard working. The ones taking the risk and doing the work deserve to profit from it. Most are considerate of others. There are shortages and higher prices of houses in some areas exacerbated by VRs, there are also some areas where poorly run VRs might add to problems in neighborhoods, but those are the exception not the rule. 80% of the properties I buy are distressed, or I couldn't afford them. I put new roofs on, I paint, add siding, update furnaces, replace windows, fix weed problems, kick out drug dealers or even addicts. Nearly every property I own is an improvement to the neighborhood. It is in my own financial interest to act this way, and I prefer it. I actually had a town clerk in a neighboring town say she was glad that I just bought another property there because I fix them up and get rid of bad folks. Try seeing this through the eyes of folks who do this, don't assume evil and greed to motives. Think about folks who grew up poor trying make sure they can send kids and grandkids to safe schools and even college. Think about the folks who do it for love of family and a good work ethic.
- Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes5y
@Account Closed Your posts make a lot of assumptions. For example, you don't know the OP intends to operate an "unlicensed and unregulated hotel". In many areas, STR's require a license and are regulated.
You also assume her STR will "destroy the community". Have you ever seen an owner-occupied house or a long term rental destroy a community? I have, plenty of times. Run down properties, properties that drugs are being sold out of, etc. Who's to say she isn't turning something like that around and actually improving the community?
Point is, you’re jumping to a lot of conclusions. On that note, you’re also way off-topic with your posts and frankly completely out of line. No one appointed you the arbiter of what is good/evil, right/wrong, moral/immoral, etc etc etc.
It was her first post on here and you basically jump in and call her “exploitative, immoral, and greedy”. To those of us who are familiar with your posting history, it seems obvious you’re not real fond of landlords and real estate investing in general, likely because your own landlord is currently in the process of evicting you.
But for a brand new member like the OP who came on here with her first post looking for help, I imagine posts like yours could be a real turn off and make them not want to return.
So perhaps in the future, instead of hijacking someone else’s thread with your disparaging comments, you do as @Joe C. suggested and start a new/separate thread of your own to share your thoughts.
- Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes5y
To get back on topic, the fact that you are turning the unit into a short term rental is irrelevant to the situation. You have a tenant, and you wish to end the tenancy. You will have to honor current lease, and provide notice of non-renewal in accordance with local laws and your lease with the tenant, (yes its your lease now, even with the old owners name on it).
I recommend being honest and giving as much notice as possible though, as this will make it easier for tenant to leave (its also the right thing to do).
- 5yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
Hey @Amanda Welch, this is a good question and don't let the troll get you down. There is a lot of good advice here.
Welcome to the forum!
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