All Forum Posts by: Steve Shaw

I suspect this situation happens more than we think @Derek Jundt. Thanks for sharing. Obviously I would rather not spend additional money to have them move out, so offering a free month or some other credit could be a good strategy. Glad it worked out for you!

Thanks @Scott Schultz. The construction will likely require some access to the upper unit (electrical, shared wall repairs, etc.) but we have the flexibility to host some short-term rentals in the upper unit for supplementary income in between construction projects; we're not expecting it to cash flow during renovations. The move-out figure you mentioned is a helpful place to start. The current tenant will not agree to a rehab while they're living there (we've already had that conversation).

Thanks for the advice @Aaron K. @Mindy Jensen

I can appreciate your perspectives from a cash flow standpoint, but that lower unit will be vacant in the Spring anyway. We're currently in the upper unit, which we've rehabbed and is tenant-ready. I'm thinking if we can encourage the current tenant to vacate early, we can get a head start on repairs/updates and have it tenant-ready sooner. The downstairs unit will require some construction, so we likely would wait until major repairs are finished before renting out the upper anyway.

Purchased a duplex in October 2019, and inherited a tenant as well as a 12 month lease that extends through May 2020. While we've attempted to show good will and provide reasonable accommodations, our tenant has unrealistic expectations in more ways than one. This ultimately led to me offering them the opportunity to break the lease early which is fine with us; the unit needs updating and sooner is better. The tenant is willing to move out early if we would like to, in their words, "buy them out of their lease." Seems like a simple enough cash for keys scenario.

My question: There's 4 months left on the lease, so what is a reasonable offer to buy them out of their lease? 

I've seen plenty of examples with month-to-month leases, delinquent tenants, eviction scenarios, and rent-stabilized situations but haven't come across anything like this particular example.

Insight and guidance appreciated!