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Updated over 4 years ago on . Most recent reply

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Tim Johnson
  • Investor
  • Becker, MN
82
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144
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Eviction versus non-renewal

Tim Johnson
  • Investor
  • Becker, MN
Posted

I purchased a multifamily property in March.  I have a tenant that has not paid $1 since I purchased the building.

Minnesota is currently under an eviction moratorium.  

Her lease expired today August 31st.  The property manager informed her we are not renewing her lease.  We checked and all her stuff is still in the unit.

Are the rules different under non-renewal than eviction?  Do I have to go through the same process to get her out?  

Most Popular Reply

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James Hamling
#4 All Forums Contributor
  • Real Estate Broker
  • Minneapolis, MN
5,527
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James Hamling
#4 All Forums Contributor
  • Real Estate Broker
  • Minneapolis, MN
Replied
Originally posted by @Tim Johnson:

@James Hamling Thanks, I appreciate the good advice.  It's so frustrating to have tenants take advantage of this situation.  It's infuriating, but I guess there is absolutely nothing we can do about it. 

It's so stupid that, people who are getting an extra $600 per week, can avoid paying a single dollar of rent for what will end up being more than a year....and there is nothing we can do about it. 

I'm going to write a letter to the governor.  Not because I think it will do any good, but as a means to vent.

There is 2 things we can do. 

If you read the moratorium order you will see they strive to cut us off at the kneecaps and make a socialized housing situation, but it has enough holes you can drive a truck through. 

First option, it says nothing as to cash-4-keys, lease buy-outs or incentives tenants to voluntarily leave, in summary as long as your trying to "buy" out a lease for "voluntary" leaving a property, it's nothing but air & opportunity. 

Next, it speak nothing of financial accountability. With that what we have moved to is civil suites for failure to perform on contract, seeking not just contractual monies owed but also damages from failure to perform including legal fee's, getting a judgement issued and then following mechanisms for wage garnishment. 

When I talk to tenants on a cash-4-keys situation I let them know that if we can not come to mutually agreed terms voluntarily we will be left with the only remaining actions available of civil suite, judgement and wage garnishment which will impact their ability to lease a future place most likely, their credit rating, and any future loans/ lending attempts. This is when the tone changes considerably and like magic they seem to have no problem paying their rent or agreeing on terms, odd luck of it huh, or just realization that we CAN do something and will. 

  • James Hamling
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