Terminating a Lease with a Tenant
My current tenant's lease is up and they were notified we are going month to month, which they accepted. I have decided I want them to move out. When I give the tenant notice, is it okay if we give them some leads on other potential rental properties they can call? Or is doing this a bad idea for some legal reason?
I do want to help make the transition as easy as possible for the tenant, as he is older, not the most tech savvy and on fixed income. He has lived there for many years, smokes in the unit and lives in his own filth watching TV all day. I purchased the property last year. Tenant always pays on time and doesn't ask for much. Fairly good tenant in that regard, but he is paying way under market price and his smoking inside and filth over the 10+ years has made it inhabitable to anyone besides himself. I have decided it would be better to move him out and put money into it to get it fixed up and turn it into a two bedroom apartment.
Looking for any tips on how to make his transition smooth. Thanks in advance.
If he is a good tenant overall and the unit already is in the condition it is in, why not increase rent to market? You could show him the comps and make it a gradual increase to get to market or slightly below say within a year? You already know you’ll have to gut the unit why not collect rent at market rates for as long as you can before you dump $x into it?
Quote from @Steve Lorefice:
My current tenant's lease is up and they were notified we are going month to month, which they accepted. I have decided I want them to move out. When I give the tenant notice, is it okay if we give them some leads on other potential rental properties they can call? Or is doing this a bad idea for some legal reason?
I do want to help make the transition as easy as possible for the tenant, as he is older, not the most tech savvy and on fixed income. He has lived there for many years, smokes in the unit and lives in his own filth watching TV all day. I purchased the property last year. Tenant always pays on time and doesn't ask for much. Fairly good tenant in that regard, but he is paying way under market price and his smoking inside and filth over the 10+ years has made it inhabitable to anyone besides himself. I have decided it would be better to move him out and put money into it to get it fixed up and turn it into a two bedroom apartment.Looking for any tips on how to make his transition smooth. Thanks in advance.
Make it smooth by setting a reasonable deadline and sticking to it. He's lived there for 10 years, he's below market, and he's allowed to smoke. He has no desire to leave! Give written notice, keep it short and professional, and don't negotiate extensions or any other concessions.
There's nothing wrong with helping him find something else. Just be careful that he doesn't talk you into extensions.
In my humble opinion I think providing leads on other potential properties will lessen the blow. He is comfortable and has been for 10 years. Unfortunately, that now must change. I would provide a written letter with a move out date and let him know that contractors have been scheduled so the move out date is firm. Hopefully being a good individual and trying to help him will not go unnoticed.
hope that helps and best of luck
@Nathan Gesner hit it on the nose. Short and sweet. Keep it a business transaction. Don't make his problem your problem and Good luck.
30 day notice ( or what ever you local laws require) and start your rehab.
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This is a typical situation we see when acquiring new PM clients. Once you are committed to a proper, complete, renovation, we would give the tenant 60 to 90 days notice, allowing ample time for them to relocate with minimal stress. We advise they can vacate at any time during that period, with rent pro-rated to last day of occupancy only, and a full return of their deposit. Unit must be left broom clean only.