All Forum Posts by: Karen F.

We have only rarely bought with inherited tenants, and if they were inherited, the only thing that we held out of their deposit was if they had unpaid rent, or if we absolutely for sure KNEW that they had caused the damage.  You see, you really cannot prove that it was not that way before they moved in.

Consider yourself lucky.  Renovate, raise the rent, get new, good tenant.

Plan on getting rid of this woman asap.  You could simply file for eviction for the lease violation of having him living there when he is not on the lease, but it would be easier if she also didn't pay her rent. How does she pay her rent?  Does she mail you a check?  Maybe the check won't arrive this month?  Get the police reports of the visits to the property.  I'd file for eviction, based upon the person living in her unit who is not on the lease, and the fact that he is disturbing the peace at the property.  Don't warn her - you've already discussed it with her.  If you warn her, she could call the health department about imagined health violations in her unit, and then for the next six months or longer, any eviction you file against her would be seen as retaliation.  If you have grounds to evict, file (assuming that courts are open in your area).  If evictions are suspended where you are, there is nothing you can do, other than try to get him arrested, or offer her cash for keys to move out.

I think you'll be fine.   You sent them an appropriate accounting, and returned the balance.

Be very careful.  This man is surely mentally ill, and off his meds.  Contact your local police early tomorrow morning and ask for guidance.  Give them the man's name, address.  Let them deal with him.  If he shows up at the office again, the manager should retreat to a safe location and call the police.

Fully rented, 100% rents coming in.  BUT... I counseled all the tenants in mid-March about all the social welfare benefits available to them, and again a month later.  I carried a couple of tenants until their unemployment started coming in.  One tenant we took food and dog food to, until her unemployment started coming in.  Another we employed to do deferred landscaping/maintenance, and then found other similar work for him with other property owners.  And the three vacancies we had at the beginning of the pandemic, took a little longer to rent out, because we were VERY picky, and insisted upon the maximum deposit allowed in our state.

Another thing to keep in mind is that renters tend to be very hard on properties.  Count on needing to do a lot of rehab on the property if you ever want to sell it, after it has been a rental.  To me, this seems to be a poor return on investment, maybe 18K/yr if you have no major expenses, on 375K of your money and credit.  Basically, it would take about 40 years of rental income (minus expenses) to pay off the building (if you were buying it for 375).  I tend to look for properties where five years of the net rental income would pay off the purchase price of the building.  I'm happy if I can find one where 7.5 years of net rent would pay for the property.  Ten years of net rental income paying off the building would be considered around standard.  This property, you're looking at 40 years of net rental income to pay off the purchase price of the building if you were buying it the day that you turn it into a rental property, plus you have a significant risk of the tenants damaging it.  If I were you, I'd plan to prepare the building for sale, so that you could get the best price for it when you sell it.  Don't turn it into a rental.

You're not really asking about sec 8 in general - in general, tons of issues.  In THIS case, sounds like he's one of the rare gems.

An inherited single sec 8 tenant with a 5 yr track record?  Absolutely take him!  Just educate yourself, and make sure you request a rent increase every year from the housing authority.  We inherited a Sec 8 tenant paying $550/mo when the housing authority would have paid 800, and foolishly asked for them to increase it to 750, which they did without batting an eyelash.  Next renewal we asked for 850, and got the 800.  So find out what the max is that Sec 8 would allow for that unit, and ask for more than that at renewal time.

NO! The security deposit is to cover damages and any other costs associated with the tenant AFTER they've finished paying all the rent.  Tell them that the boyfriend who is staying must sign a new lease now, and provide a new security deposit, as if he were a new tenant.  Tell them that you will inspect on the day the lease ends, after she has moved out, and if there is no damage, you will return the deposit then and there to both of them, and his new lease begins, with his new deposit, that you've already collected.  It's between them how they divvy it up.

You do it exactly as if they were both leaving, and a new tenant was moving in.  You get the deposit ahead of time from the new tenant, you sign the lease ahead of time, you inspect after move out, and you return the old deposit according to the laws in your state.  The departing occupants are her and the boyfriend.  The new occupant is the boyfriend.