Unauthorized Occupant Violation - Eviction Process in Sellersville, PA

[Oscar Beteta]

Hi all BP friends!

I have been a small RE investor for the last 5 years or so, and I finally have come by my first rough ride with a tenant who I inherited with the purchase of my last triplex in Sellersville, PA. I would like to get your thoughts/advice on how to proceed so that I can use the collective wisdom to find the best path forward. Read on for the background story and some more precise questions.

BACKGROUND:

I inherited a tenant with an existing lease when I purchased a triplex in 2022. The tenant had been living there since 2011 and had an existing lease with the previous owners which got transferred to me during the sale. The tenant is an older veteran who is mild mannered and appears to have a lot of health complications. The real estate agent actually told us that he was terminally ill - which we (my wife and me) later found out was not true. We started off on a good note with the tenant, he paid his rent on time, and so we didn't have a real reason to get too involved. We figured that he may be rushed in to the hospital one of these days and not be able to live on his own and that we would get the rental back so we can fix it up. The rental is in really poor condition despite the 2011 original lease paperwork has a move-in checklist that documents that the place was in good condition throughout.

We came to discovered at the beginning of 2024 that the main tenant had a guest living with him and they were no longer getting along. The original lease did not allow for other occupants to live in the property besides the main tenant. The main tenant called me to demand that I remove the unwanted guest because he would not leave. I spoke with the police and they told me that they could not remove the unwanted guest because he had been living there for more than 30 days and set up his mailing address there and therefore he could only be removed through an eviction process. We became alarmed and started to look deeper into the story. By talking more to the police, we found out that the main tenant had a long history of inviting guests in exchange for help around the house and that those relations would always turn tumultuous and that the police visited the house several times each quarter over civil complaints, suspicious activity, noise, drug related activity, and a bunch of other civil nuisance type of calls. The police chief was able to give us a full compilation of all the police reports which are many. We also spoke with the unwanted guest's probation officer who told us he had his hands tied and couldn't force the unwanted guest to leave my rental.

Based on all of this information, we decided to give the main tenant one last chance to clean up his act as we felt bad kicking out an old veteran with a dog in the winter. We signed a new set of lease documents (month-to-month) with him with terms that I am familiar with and with the stipulation that the unwanted guest needed to leave within 30 days or we would ask the main tenant to move out. We decided to leave it at that. The main tenant continued to pay rent, and we failed to really do a proactive follow-up for the next couple of months.

In June, we decided to check into the situation prompted by a call from a very concerned neighbor who is familiar with all the trouble the main tenant causes. The concerned neighbor requested us to do something to put an end to the endless stream of unsavory people coming and going from that rental, with the main tenant in the middle of all of it. We verified with the police that the unwanted guest was indeed still living in the rental with the main tenant, and that the unwanted guest had had a case of an overdose just a month ago in the rental. Based on all of this information, we decided to give the main tenant a notice that we will be ending the lease on Aug 15. We hand delivered the notice and he said ok. We spoke with the unwanted guest personally and he said he would leave by Aug 15.

July comes around and the main tenant has decided not to pay the July rent. He says he doesn't have the money to pay the rent and to get a new place. We told him that if he doesn't pay the rent soon, that we will initiate the eviction process.

Here is a summary of the lease violations that are active against the main tenant:

1. Unpaid July 2024 rent
2. Unauthorized occupant living in rental for longer than 2 weeks and using the rental as a mailing address
3. Tenant does not have renter's insurance
4. Tenant has caused physical damage to the property (the interior is overall trashed, the latest damage is to the exterior siding around the main entrance as if from someone wanted to break in)

Thank you everyone in advance for your input on this.

QUESTIONS:

1) Notice to Quit - The new lease signed with our tenant included the following clause: 

"If tenant breaches this lease for any reason, tenant understands and agrees that tenant has waived or given up tenant's right to a notice to move out unless a different period for providing notice is required by local ordinance or is stated here:..."

Are we good to proceed to file the Landlord/Tenant complaint without a notice requirement?

2) Unauthorized Occupant -The tenant allowed the unwanted occupant to stay in the property for longer than 30 days. The unwanted occupant remains in the property and uses it as his mailing address. Does he have tenant rights? Do we need to evict him if he doesn't move out per our request? Do we need to give him a notice? Or can he be included in the eviction process for the tenant? Is the unwanted occupant to be considered a squatter?

3) Multiple Lease Breaches: Can we include multiple breaches to the lease in a single complaint with the court? If we are limited to a single violation to be put into the landlord/tenant complaint form, would the best angle to go with be to evict the main tenant over the unauthorized occupant violation so that this lumps in the unauthorized occupant into the eviction process and both the main tenant and the unauthorized occupant would be kicked out together?

4) Security Deposit Limit: Our tenant has been living at the rental property since 2011. When we purchased the property in 2022, the lease with the previous owners was transferred to us. In Feb 2024, we signed a new lease with the tenant with a new format and new terms. The security deposit from the old lease was carried over in the amount of $2000. Based on PA law, are we limited to only hold on to a security deposit amount not greater than one month's of rent ($1250)? I am not keen on returning any of this money back to the main tenant as it is very evident that the damage he has caused on the property with a rotating cast of characters and a pet is likely significantly higher than $2000.

5) Legal fees and other costs: Can we include a demand for unpaid rent, legal fees, and other costs in the eviction process for our tenant or does this have to be a different suit? Can we demand all the legal costs associated with removing the unauthorized occupant from the main tenant?

6) Fees: How much is it in total fees throughout the eviction process in PA with and without an attorney?

[Theresa Harris]

Just let him know that you are going to start the eviction process unless he pays rent for July. If he's a vet, I'm sure there are resources he has access to that others don't, in addition to the regular places for support (eg local church).  I'd also explain to him that if you go through with the eviction, it is going to be harder to get a new place; so he'd be better off paying rent and even moving out early if need be (eg Aug 1).  Looking for a rental after 13 year, he may be in a bit of shock at the rental prices, but that's his problem.

As for damage deposit, you can only keep money for damages that you know he did (ie anything since 2022).  You don't know what the house was like when he moved in and it has been 13 years, so some of the things you will find are part of normal wear and tear (eg if you need to replace carpet, repaint, etc) not damage that the tenant did.  If you plan on doing a lot of renos, I wouldn't bother cleaning after he leaves because your renos are going to make a mess anyhow.

[Oscar Beteta]

Quote from @Theresa Harris:

Just let him know that you are going to start the eviction process unless he pays rent for July. If he's a vet, I'm sure there are resources he has access to that others don't, in addition to the regular places for support (eg local church).  I'd also explain to him that if you go through with the eviction, it is going to be harder to get a new place; so he'd be better off paying rent and even moving out early if need be (eg Aug 1).  Looking for a rental after 13 year, he may be in a bit of shock at the rental prices, but that's his problem.

As for damage deposit, you can only keep money for damages that you know he did (ie anything since 2022).  You don't know what the house was like when he moved in and it has been 13 years, so some of the things you will find are part of normal wear and tear (eg if you need to replace carpet, repaint, etc) not damage that the tenant did.  If you plan on doing a lot of renos, I wouldn't bother cleaning after he leaves because your renos are going to make a mess anyhow.

 Thanks Theresa! Have you been involved in evictions before in PA?

[Tim Miller]

You need to start by saving yourself some real headaches! Hand delivering the notice is nice but not legal. You go to court and one or both could tell the judge, We never received any notice and it's your word against theirs. Most likely the judge will side with the tenant.

Send them each a notice stating you are not renewing the m2m lease by certified mail. Do this now if you're still want them out by Aug 15th. You have to give at lease 30 days notice.

This whole thing could go south real fast, send another certified letter giving 3 days to pay July's rent. If they don't, then file for failure to pay rent. Now you have 2 options under your belt to get them evicted.

I'm not sure about PA security deposit law, check with an attorney. I would offer the tenant this. If you and your guest are out of the unit by Aug 15th I'll return $750.00 of your security deposit. But I'm keeping $1,250.00 for July's rent. Good luck!

[Theresa Harris]

Quote from @Oscar Beteta:

Quote from @Theresa Harris:

Just let him know that you are going to start the eviction process unless he pays rent for July. If he's a vet, I'm sure there are resources he has access to that others don't, in addition to the regular places for support (eg local church).  I'd also explain to him that if you go through with the eviction, it is going to be harder to get a new place; so he'd be better off paying rent and even moving out early if need be (eg Aug 1).  Looking for a rental after 13 year, he may be in a bit of shock at the rental prices, but that's his problem.

As for damage deposit, you can only keep money for damages that you know he did (ie anything since 2022).  You don't know what the house was like when he moved in and it has been 13 years, so some of the things you will find are part of normal wear and tear (eg if you need to replace carpet, repaint, etc) not damage that the tenant did.  If you plan on doing a lot of renos, I wouldn't bother cleaning after he leaves because your renos are going to make a mess anyhow.

 Thanks Theresa! Have you been involved in evictions before in PA?

 No.  I'm in Canada and so far tenants who stopped paying rent (n=2) have moved out on their own.  

[Dennis McNeely]

Speaking from Michigan here, so pull from this post whatever makes sense...

If the situation arises again, tell the tenant your intent to evict if the squatter doesn't vacate the premises - and start the eviction process immediately. In Michigan, that entails a 30 day notice to quit for lease violations. Doing so will add teeth to your stated intent to evict, and will shorten the overall time to evict. You can always drop the action - assuming the squatter leaves.

Your questions...

1. You probably have to give notice, regardless of what's in the lease. Check your local landlord - tenant ordinances.

2. To ensure you get rid of the squatter, be sure to note that you're evicting "John Doe and all other occupants". It would be a real drag to have John Doe gone at the end of your eviction proceeding, only to have to deal with one (or more) squatters after the sheriff has shown the tenant the door.

3. Yes, cite any relevant lease breaches in a single notice.

4. I have no clue as to the answer here or there.

5. Your local landlord - tenant ordinances dictate whether you can include legal fees in any judgement, whether you can include interest in any judgement granted, etc.

6. No clue - I don't have any property in PA.

Keep in mind that I'm not an attorney, accountant, priest, or rabbi - just a landlord with a few scars of my own.

[Henry T.]

Call some experienced eviction attorneys. Ask them about pricing. Go with who is most transparent and has tons of evictions under their belt. Dont call the guy down the street that is simply an attorney, you want an eviction attorney. Stop wasting time. Dont try it yourself, you'll mess it up. Costs depends. If a scary letter from your attorney does the trick it could be only $300. If it drags on and goes all the way to judgement and sheriff removal  figure on 2 or 3 grand.

[Melanie P.]

1. No. That clause is ridiculous. 

2. This is a rather weak argument at this point. You gave him a new lease agreement knowing the unauthorized occupant is there. That's known as "waiver"

3. Did he ever? Why did you give a new lease when he was in default on the old one?

4. How do you know the tenant caused this damage?

You should begin evicting the tenant for nonpayment of rent. And make the required notices. You may additionally post and mail a termination of tenancy to end the month to month rental agreement. Then in 30 days you can also begin evicting for Tenant Holding Over. 

You can also send him a notice to cure the unauthorized occupants and renter's insurance. This is just to start the clock. Proceed as soon as you are able with the eviction for nonpayment. 

[Andreas W.]

@Oscar Beteta

The easiest to win evictions in court is for non payment of rent. I personally would go for that. I am not a lawyer, though. Definitely read and understand the state statutes for PA. They dictate your process and are likely online. If your municipality has additional ordinances, read them as well.

[Drew Sygit]

Hire an attorney and get out of your own way!

This is highly likely to get ugly - one of the occupants will hopefully move out on their own, unfortunately, it's highly likely one will stay.

Sooner you hire an attorney the better, but not smoother, this will go.

WHy haven't you reported the OD to the "guest's" pobation officer or warn the guest you will to force them out?