Multi-family issues with decades old tenant

[Craig Newcomb]

I purchased a three-unit property in Stamford in 2017. Since then, I’ve been able to fully renovate the second- and third-floor units as tenants vacated. The first-floor unit, however, is in very poor condition and has not turned over in decades. The tenant household has been there since approximately 1982. The elderly mother is over 90 years old, her husband has passed away, and her adult daughter continues to live with her. They are Section 8 tenants and, while generally decent, the unit itself is severely run down.

Because the unit is occupied, repairs have been done only on a piecemeal basis rather than through a full renovation. Over the past year alone, I’ve spent over $4,000 on electrical work, including running new lines. Utilities were transferred into the tenant’s name, but the gas was never switched over. As a result, the tenant had no heat and blamed the building. We sent three separate plumbers to confirm there were no issues with the building systems, and the utility company ultimately shut off the meter due to non-transfer.

I am very hesitant to not renew a lease for a tenant in her 90s, but each year the maintenance costs increase and the volume of support requests from the daughter has become excessive. The unit truly needs a full gut renovation, which is not feasible while it is occupied and would cost approximately $20,000. I offered them the renovated second-floor unit, but the elderly tenant cannot manage the stairs.

Once the elderly mother passes, I would not plan to renew the daughter’s tenancy, but in the meantime I’m struggling with how to responsibly manage this situation. I also have two additional unit turnovers scheduled next month, which adds to the strain.

Additional challenges include heavy smoking inside the unit (despite it being against the lease), which has caused significant odor damage, and the fact that the property only has street parking, limiting the future tenant pool. The unit is a 3-bedroom, 1-bath, approximately 1,400 square feet on the first floor.

The tenants currently pay $2,900 per month. Market rent for the unit would likely be between $3,500 and $3,750. I’ve been increasing rent by 5% annually, and the unit was significantly under market for many years.

Open to ideas and suggestions.