How do I handle such an unhinged tenant?

[Ben Gleason]

I own a property where I rent out the lower apartment while my wife and I live in the upstairs one. Consequently, I see my tenant quite regularly. I've had issues with this tenant in the past, as discussed in a previous post.

Currently, I'm concerned that my tenant might have a drug problem, as he seems to never sleep. I'm also quite certain he has an alcohol issue, as I always smell alcohol when we speak in person.

When the tenant first moved in, he would wait for my wife to leave for work and then rush outside to talk to her, often presenting significant problems he was facing – hospital visits, sick parents, cyber hacking, and more. Eventually, he shifted his attention to me, and now I receive the same treatment. I try to be cordial and brief, but his issues have become increasingly bothersome.

He now believes he is the victim of a serious crime, often calling to tell me the police are coming over (which they never do), or asking if I see a specific car on the street because he fears they are there to harm him. He constantly mentions either coming from or going to the police station due to this vague crime issue.

We have a driveway, but only my car is allowed to park there; the rest is street parking. Tonight, I came home to find his car parked partly on the lawn and partly in the driveway. When I asked him to move it, he said the police had visited and that he would move his car in a few minutes. I left the house to drive around the block to give him time, I noticed him standing in the dark, staring out of his window recording with his phone. Upon returning, I saw him still recording from his apartment window, facing the street. It was quite unsettling.

I ended up parking on the street and going inside.

What should I do in this situation? Both my wife and I feel extremely uncomfortable with him here. 

[Nathan Gesner]

Quote from @Ben Gleason:

1. Watch the movie Pacific Heights with Michael Keaton. It's a great example of what happens when you respond slowly to odd behavior.

2. Set boundaries. If he approaches you to speak outside, tell him you don't have time to talk. Make him communicate via text or email. Do this consistently until he gets the hint.

3. His erratic behavior indicates an increased risk of danger. Maybe nothing happens. Maybe he will flip out and attack you. Maybe he's doing it on purpose to get out of the lease. I recommend you take it seriously, keep your head on a swivel, and be prepared to defend yourself.

4. Get him out. You can start by being honest about his behavior and that you want him out. Give him a hard deadline to be out, but let him leave early without penalty if he finds another rental quickly. Offer to refund his deposit immediately as long as there's no damage (you handle the cleaning). If he's not out by the deadline, contact an attorney to see what you can do to force him out.