Impact on non-renewal of month-to-month
I'm trying to determine whether the new rules regarding tenants will impact my ability to not renew month-to-month leases.
I should be closing next week and have been under contract since before most of this craziness started. Two duplexes, each with month-to-month tenants in Clearwater, FL. The plan has been to progressively not renew the leases; since they are under market rent and the units need to be renovated. I'm wondering two things:
1. Will I run into any issues when I try to not renew and get them out?
2. How much notice is required? I'm not sure if it is 30 or 45 days.
Thank you.
Hey Phillip,
What do the current leases say about notice? Usually 30-45 days is typical. If there's no lease you may have to look at the state guidelines.
As far as issues, there wouldn't be any problems in Texas unless the tenants decide not to move-out and you have to evict them. Then you may be in a several month battle over your property.
The prior owner never had leases, so we had them write something up and get it signed for each tenant. This is what the documents contain:
To whom it may concern
Property located xxx...
Seller has not collected any security deposit
from Tenant. Rent is $800.00 a month. There is
no lease agreement, tenant pays month to
month.
My to-be property manager is advising there was a change recently that requires an additional 30 days of notice, on top of whatever the original requirement was. Is anyone familiar with this? I'm trying to find the actual documentation.
1. The Governor has put a stay on evictions, so if you need to evict, the courts will not process them. It looks like you will be put in a line and be processed in order of entry; First In, First Out.
The issues you might run into would be if they decide to become holdover tenants and you HAVE to evict. Then you have tenants that know you don't want them in living in your place. Personally, I don't like that situation. It would concern me that they might take it out on the property.
They might be fine with it, but have a hard time finding a new place, also. In that case, you would either work with them, or again, be in the situation above.
2. Always go to the lease. The State requires a minimum of 15 days on MTM, but I have seen leases that say 45 days. You have to honor the lease.
You might want to talk to them about raising the rent (maybe even progressively) to market and let them decide to move on their own. Or leave them for awhile. Paying tenants below market are worth something, at least. Bird in the hand and all. These are crazy times.
On a side note, in normal times, my personal preference is to non-renew everybody at once. After you do it to the 1st, the rest see the writing on the wall, and you are back to the situation above. I want tenants, especially inherited tenants, to have as many reasons as possible to take care of the property!
-
Real Estate Agent Florida (#SL3364820)
- 727-288-7325
- https://danmacrealtor.com/
- [email protected]
Originally posted by @Phillip Rosin:My to-be property manager is advising there was a change recently that requires an additional 30 days of notice, on top of whatever the original requirement was. Is anyone familiar with this? I'm trying to find the actual documentation.
I haven't heard that, and didn't see it in a quick search. It would seem advisable to give as much notice as possible, especially so the others don't see you as heartless if you decide to progressively vacate the units.
These are different times, so we are all trying to find the "new normal" and stay good humans.
-
Real Estate Agent Florida (#SL3364820)
- 727-288-7325
- https://danmacrealtor.com/
- [email protected]
Thanks for all the feedback so far. One big issue is that, at current rents, I'm losing money (I can afford it but of course would prefer not to have to). I can try increasing rents and see where that goes. However, for at least one of the tenants, I have to get them out since one of the properties is for FHA and I need to move in within 60 days. Market rents for these are around 1400-1500 and they're currently paying 800. My $0 cash flow number is around $1,400/unit for 3 units ($0 from the 4th unit since I'll be living in it). I'm not sure the owners have upped rents at all over the past 10+ years... or ever checked on these units. Some of the tenants have been there almost 10 years and the places are disgusting.