Inheriting a hoarder tenant

[Christine N.]

I am making my first rental property investment on my own. After 8 months of searching and several almost deals, I found this FSBO as soon as it came on the market. Bank appraisal was higher than sale price. Home is in a community I am very familiar with. The city has a strict inspection policy and this place is up to code. The property in a nice community (Shaker Heights, OH) but certainly the less desirable section. The house has had the same tenant upstairs for 18 years, making it profitable, but she is there because moving would be a monumental task due to her mountains of possessions. Fortunatley, she has a couple nice cats who guard the perimeter.

Again, if I could have bought in a better neighborhood, I would have.  But I had to get my foot in the door again somewhere.  I can see the downsides, but I know there are always possible downsides in any property.  I would appreciate any advice on managing a tenant like this. I must contain her somehow. Since hoarding is a protected disability, I must also be accommodating.  Your  input - especially encouragement if you can find any, will be treasured.  It is a bit scary doing this alone, but that is exactly why I must forge ahead.

[Christina R.]

what are the terms of the lease?  If you are inheriting her I'm assuming you must honor the lease.  However, when those terms are up  if you do not want to keep her give her proper notice.  If she doesn't comply, you can start the process to evict even if hoarding is a protected disability class, I would think. 

Have you closed on this property yet?  Does your contract state that you inherit her or can you take the property on the condition that it is vacant?  I'm looking at this from your exit strategy position; if you had to bail on this house and you have a hoarder tenant, I'm not sure you'd have an easy time disposing of the property.  You mentioned upstairs, so are you occupying the unit downstairs or is that going to be rented out as well?  

I understand the desire to get that first rental; I've been at it for over a year and I sometimes feel like I'm spinning my wheels but I'm have to say, I'm not sure this situation is one you want to get into.  Hoarding presents enormous problems with safety and with pests (bedbugs, rats, vermin, etc).  These are major liabilities for you as the landlord. You are right that any real estate investment has risks but you can mitigate much of that by deciding what you will and won't voluntarily take on.  Sorry to be a buzzkill but hoarding is a psychological issue that has huge ramifications.