Creative solution to avoid a bad situation?

Question

The time is well past due to get an inherited tenant out. I think I may have finally found a solution to get him out and avoid damage to my unit. I’m thinking on offering him 3 choices. I’m sure there are plenty that will say just give him a 30 day, I just really feel given his demeanor there’s a good chance he’ll look to retaliate somehow, so I’d like to try and give him a choice to give him some dignity and feel he’s being treated like a human. In quick summation, he doesn’t keep up on the place, trash in the garage, pretty sure there’s a good chance of a rodent problem there, and he’s on a month to month

My 3 choices…

Raise the rent to market rent, which is $100 more than he’s paying, the place cleaned up, and if he’s late on payment he’ll receive a termination letter that month

A 30 day lease termination letter, detailing his exit of the property ( good condition, keys turned over, etc) in exchange for his security deposit in return

Or Cash for keys once he pays this month. Give him 10 days to vacate for $500, the amount he’s currently paying in rent, with terms of course saying the property be left in good condition

Thank you in advance for the help and feedback

Nathan Gesner · Answer

I can't understand why Landlords are so worried about lawsuits or tenants trashing property, or why they are so quick to offer cash to a bad tenant.

Raising rent on a bad tenant will not improve their behavior. If anything, it will cause resentment and result in more bad behavior, or the won't be able to afford the increase. Bad idea.

Cash for keys is a last resort. I know it's talked about a lot on BP and definitely depends on your market, but there are only rare instances where it should ever be used. This is not one of them.

I manage 400 rentals and have never had an angry tenant trash a unit on the way out the door. They leave it filthy and messy or abandon stuff, but actually causing damage on the way out is pretty rare. Maybe it's more common in the big city.

He's on a month-to-month. Give him written notice that his lease is terminating in 30 days. State your expectations of paying rent through the 30-day period, what condition the home should be left in, and how to turn in keys. Explain how you will handle the deposit. Keep it short and professional, without apology or excuse.

If he fails to leave by the scheduled date, hire an attorney and force him out legally. If he trashes the place or leaves it dirty, hire people to clean it up and decide whether you want to pursue damages or chalk it up as a learning experience.

Nathan Gesner · Answer

I don't disagree. Again, everyone has to determine the best option given their situation, who they are dealing with, experience level, political climate, and 17 other factors. I have always disagreed with cash for keys, but some people swear by it.

I'm simply suggesting you don't default to rewarding bad behavior when other options are available. I've had tenants three months into a lease that were behaving badly, so I verbally told them they had five days to get out or I would evict. They were gone in two. Most Tenants know they're in the wrong and they'll move along if you stand up to them.

As for damage, I've had a few tenants punch/kick a hole in the sheetrock, but that's it. Fixing that is cheaper (and easier on my ego) than paying the tenant to leave.

Scott Johnson · Answer

@Cory Lucas, get him out. Pull the plug. No choices, just get out.

If this is all true, then your tenant is making it impossible for you, as a landlord, to fulfill your obligation of keeping the home in liveable condition. Why would you worry about his dignity at this point? It's business and he knows what he's doing.

If he has not been paying rent and you have not evicted him as defined in the lease agreement then you can get in a ton of trouble!!!!!!! The judge will look at you and say, "Why have you not been enforcing your lease?" and possibly give more leeway to the exiting tenant!

Hand him the 30 days notice at the door and walk the property for an inspection (Bring an officer or a friend if you feel like you need it). Take a lot of pictures just in case things go south and you'll have them for court.

This is a two-way contract. Enforce your side of it.

Michael Dumler · Answer

@Cory Lucas if time is well past due, then option two is how I would proceed. As you mentioned, I would use the security deposit as a means to incentivize him to leave the property without causing any more damage. Make it crystal clear in the notice letter that he will receive the security deposit immediately if the property is left in good condition and has been vacated on time. Curious to hear what others have to say. Hope this helps!

Scott Johnson · Answer

Agreed. And the judge will throw that book at us if we don't follow the lease. If we give one person a pass and enforce the rules with all of our other tenants, we're opening the door for a discrimination suit. Ain't hapening.

Cory Lucas · Answer

@Scott Johnson careful what ya wish for ;) might take ya up on that

Colleen F. · Answer

@Cory Lucas  if the time is well past due as a result of tenant behavior don't give him a choice. If you don't want him as a tenant give him notice. If you do want him as a tenant provide a notice of renewal at market rent (if that is enough money for you to put up with him).  Choices can just result in additional stress for you and the tenant.

Matt Devincenzo · Answer

You said "I’d like to try and give him a choice to give him some dignity and feel he’s being treated like a human". In my opinion the ONLY way you do that is by treating him like an adult and simply being up front and honest, and say "I'm not renewing your lease so here is a 30 day notice to vacate".

Avoiding difficult situations isn't going to make you or him better off. I don't like to have to deal with these situations either, it's just not my forte and I would prefer to avoid them where possible. But the value to my family and the need to address things up front and quickly pushes me to do it myself and not just hire a PM.

Scott Johnson · Answer

Sorry, not sorry for the bold and italics. This is a "tough-love" situation.

Cory Lucas · Answer

@Matt Devincenzo not much, he was an inherited tenant so I only received $200 for a security deposit. He was paying $500 a month when we terminated his lease. So far in costs I’m at $930 for trash removal, $300 for deep clean, $300 for drywall repair, and not sure what I’m looking at just yet for paint. They’re coming this week, figured I would look to get that covered too if I seek recovery as I would not have been able to match paint where the drywall had to be repaired

Creative solution to avoid a bad situation?

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