Informed tenant of raising rent, they claim they can’t afford it.

[John Gach]

So I bought my dads property, it came with a tenant who has lived there since the day he bought it 30 years ago. He never raised rent, it’s at $400/month. The unit isn’t very nice, she’s a smoker and there’s nicotine on the walls so I can’t even slap some paint on the walls to make improvements. Besides that it needs a lot of cosmetic repairs. Not a huge deal as atleast the property was bought at a good price.

Luckily the tenant is month to month, she supposedly is a nurse, which she should easily be able to afford more rent. I figured fully renovated apartments around mine would be around $1,000/month. So I sent a 90 day notice stating the rent will be $750/month. Would be hard to find an apartment for less than that around my area now a days.

She replied that she can’t afford that much, and that she lives here for a reason, and that she could do $500/month.

I haven’t replied yet because I’m trying to figure out the best response.

I know she has a boyfriend, so maybe I could tell her to have him move in if he fills out a rental application, and passes background checks.

Or maybe she could apply for Belmont or section 8, I’m not sure, although I imagine she makes plenty of money if she is indeed a nurse. Even if she is a nurse and is bad with her money, that’s her problem to figure out.

Any tips on handling this type of situation?

She has a lot of belongings in there, it’s not very neat, and I can’t renovate properly with her living there, so it kinda ruins my plans. I was planning to renovate, get market rate rents, and cash out refinance.

Thanks

[Nathan Gesner]

Quote from @John Gach:

Any tips on handling this type of situation?

John, you're working way to hard to try and keep a bad renter! She's damaged the property with 30 years of smoking. She's not maintaining the home so your family has lost income and now you're stuck with a major renovation. She can't afford what it's worth, and it's probably worth even more after renovation. Why would you even consider keeping her???

Do not give her a rent increase. Do not let her get a roommate to make it more affordable. Do not recommend she apply for assistance. Do not move forward with this tenant under any circumstances! Give her written notice of termination and stick to it. Make it short and professional. I would not offer any financial incentives, but I would tell her she doesn't need to clean because you'll be renovating anyway. Give her 60 days and then stick to it. Don't negotiate any more after that. Stick to your guns, evict if she refuses to leave.

It's not easy to get rid of a long-term tenant, but she's made life choices that put her in this position. If she were honest and really cared about your family, she would be grateful for 30 years at such an affordable price. Your dad lost about $90,000 in rent over the years. Don't make the same mistake.