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Updated 7 months ago on . Most recent reply

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Caroline Notman
  • Real Estate Investor
  • Gilroy, CA
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Fix or quit vs Put up with them for 5 more months

Caroline Notman
  • Real Estate Investor
  • Gilroy, CA
Posted

My tenants are on a 2 year fixed lease which ends in mid Feb 2025.  They have been a pain in my 'side' and are so rude and entitled its beyond words.  They are currently in breach of their lease. 

1. 2 unpermitted dogs 

2. turned off my external security cameras. 

3. owe me 3 late payments of $900 total, although rent is current.

They recently apologized for being so rude to me and asked me if I would consider extending their lease for another 3 years.  I said I would 'consider' it if we are able to address the existing lease violations.  I offered to add the 2 dogs to the existing lease for a refundable deposit of one months rent.  I asked that they pay the late fees and turn the security cameras back on.  They said NO - it's no fair of us to ask for a deposit for the dogs.  They won't pay the late fees or turn on the cameras.  Priceless!!  I did point out that they are asking me to enter into a further 3-year contract with them when they are already breaking the terms of the existing contract, but they are so entitled and oblivious that the reality escapes them. 

I only have 5 more months to put up with them, but I am so very tempted to issue a fix or quit and get them out sooner.  Under the terms of my lease it states that if I evict them they are still liable to pay the rent for the remainder of the term.

Lessee shall continue paying rent and all other charges for the Premises to the end of the term of this lease,
whether or not the Premises becomes vacant by reason of abandonment, breach of the lease by Lessee,
wrongful termination by Lessee or if the Lessee has been evicted for breach of this lease, to the extent said
obligation for rent has not been mitigated, abated or discharged, in whole or in part, by any law or
ordinance.

My question to you landlords who have previously been through a fix or quite is "What would you do and why?"

Any advice for all you experienced landlords is very much appreciated.

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Greg Scott
  • Rental Property Investor
  • SE Michigan
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Greg Scott
  • Rental Property Investor
  • SE Michigan
Replied

There are a lot of problems here.  You probably won't like what I have to say.  It seems to me that many of the problems were created by way you are managing your business.

First, let's talk accounting.  When a resident pays rent late, the first portion of their payment goes to the late fee.  Whatever is left over goes to rent.  You should never have "rent current" while they owe you late fees.   Why?  Most judges won't evict over fees, but they may evict over not paying rent.  How you do the accounting matters.

You have also allowed the residents to stay despite SEVERAL lease violations.  You clearly have had discussions with them about the lease violations and have not taken action.  Once you start violating the integrity of your own lease, you are on a slippery slope. 

Finally, cameras are a touchy subject.  If this were an apartment complex, you would have full rights to camera up the common areas.  This sounds like a house.  The cameras could be considered a violation of tenant privacy and may even be illegal.  It would be risky to go to court over that issue.

Now regarding the tenants, if you give some of them an inch, they will take a mile.  The two clear issues you have on your side are the dogs and, after next month's accounting, the late rent.  I would hit them immediately with a lease violation letter as prescribed by your lease and give them 10 days to remove the dogs or start paying pet rent and put down a deposit.  If they don't, file for eviction.  Hire an attorney and post the court costs and attorney costs to their account.  Those get paid before rent, so they will likely be behind on rent by the time you get to court.

Finally, I would not renew their lease. You've trained these tenants that the lease doesn't matter. Their behavior is not likely to improve.  It will be easier to start fresh.

  • Greg Scott
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