How to remove a tenant with existing lease

Question

Hello and thank you to anybody that answers my question,

I am looking at the property in Denver, CO (Adams County) that has a tenant under lease until 2/28/2016 for well bellow market value ($500/month when it should be over $1000 and around $1500 after remodel).

after the lease ends it's month to month.

the current lease gives only one out option that is written the contract:

"The tenancy granted may be terminated by tenant or landlord with 30 day written notice if rented on month to month basis."

does it mean i have to wait until it is on a month to month basis and then i can give 30 day notice? this would end the agreement on 3/28/2016 with possible eviction after that???

or can i give a notice to end the lease/rental agreement so it is effective on 2/28/16 when the actual lease expires?

I am looking at the worst case scenario just to be ready before i purchase this place.

thank you

Peter

Account Closed · Answer

The chances of a long term tenant with a property full of junk and paying under market moving on schedule is slim to zero.  Either make closing contingent upon on the property being vacant.  Or negotiate the necessary discount to close now and take over the tenant situation.  If you close next month you can give 2+ months notice that the lease will not be renewed. But be prepared for eviction costs and the additional time it takes.

The seller has a known problem.  I'd negotiate hard to close now in order to get the discount.  That being said, if this isn't a cash deal and you are getting lender funds, you may run into an inspection problem anyway.  Inspectors and appraisers will note that property has health and safety concerns (if it does) and make it difficult or impossible get a loan until the issues are resolved.

I don't know your market, but in any competitive market there are investor buyers with cash that have no issue with the sitting tenants.  They usually get the best price in these circumstances.  Consider them your competition and make your offer accordingly.

Bill S. · Answer

@Peter Sejna your chances of successfully getting an eviction for trash in a timely manner is pretty slim. Best to just close and give notice that Feb 28 is the end date. Make sure you do this properly. Don't mess with giving options of increasing rent. It just muddies the waters.

Be prepared, I had the Sheriff tell me they wouldn't do an eviction of a hoarder tenant without a plan to deal with all the stuff. My experience is in Denver County. There, I have 2 hours to get ALL of the tenant's stuff off the property. The Sheriff told me I could have dumpsters brought to the curb and "stored" the tenants stuff in the dumpsters until the 24 hours (after set out) expired that the tenant had to move their treasures. After 24 hours I would had to pay to have the dumpsters dumped.

One thing you might do that might save you some time is to go with the tenant to rent a storage unit (you pay and tenant signs). You can then hire a truck and movers to help the tenant get their stuff to storage. If you do end up going the eviction route, then you will have to figure out how to actually carry out the physical eviction. Lots of communication is required with the Sheriff and it will likely draw out for weeks while you end up helping the tenant move anyway.

Another route it to purchase the stuff from the tenant or hire a friend to purchase all the stuff from the tenant.

By the time you pay for labor and disposal fees, you could be out thousands ($5-10K). Of course if the tenant moves on their own, you win.

Keep us posted on how this goes. It's not fun.

Jonna Weber · Answer

I would give them notice early, and also offer to let them out of their lease early.  You shouldn't be stuck with them after the lease end, just give them at least 30 days notice that you will not be renewing their lease or going month to month.

Travis Sperr · Answer

30 day or earlier notice that you will not be renewing for any term at the end of the lease.

You could also offer to give them money to leave the lease early - but they have very little incentive to do so if it is $500 under market - unless you give them a substantial amount. No need or reason to evict unless the tenants is in default under the lease.

Nicole A. · Answer

If you purchase, you will have to wait until the last day of their lease (but before it goes month to month) for them to move out if that's what you want. When you purchase, you can go ahead and tell them now (way before 30 day notice) that you plan to up the rent. Who knows, maybe they'll be interested in staying. But if not, you've given them more than enough time to figure out a new place.

Steve Vaughan · Answer

If you close now, get a discount for sure as K.marie  P.!

Peter Sejna · Answer

it would be great if tenant removes all the garbage off the property, but i am not counting on that.

it is mainly garbage outside that is concern, but i am planing to remove the garbage on my expenses.

he also has 3-4 cars (covered with tarp) that i am not sure what i would do with them. hopefully he would want to take them with him, assuming he cares enough about them to cover them???

i believe i can deal with all the garbage and mess left behind, the only think i was not sure about is getting tenants out of the house and all of you've been a great help to make me understand what i am possibly walking into.

thank you

Greg Kimura · Answer

Sorry, one more thing.  I read the advice regarding negotiating the price/terms of the purchase and I think it's great advice.  If you're buying the house for well below market value, the tenant may be the reason for the low price and you may not be able to get any concessions, but it's always worth a try.

And make sure you look over the lease and make sure that there are no limits on raising rent or there is no rent control where the house is at.  Raising rent won't help in this case.  If there are no limits, them maybe you can raise the rent to market value and if they want to stay, what's the harm?

Greg Kimura · Answer

One thing I've learned is that the faster you start working on getting them out, the better.  I'm not sure about your state, but here in So Cal, I've had tenants in my house for up to six months while the court system dragged their feet.

Since their lease ends at the end of Feb, I think you should sit down with the tenants and give them a three day notice.  Since they've been there for 20+ years, they don't have an eviction on their record and even though they don't want to move, they may be forced to.  Your job is to convince them that they should accept your offer, because if they don't, they will have a tremendous amount of trouble finding another place to live and the reality is that they will have to move.  Be firm with them, but also show your concern for their well being.

It may take more than one meeting with them and you may not get them out until the end of February, but at least you won't be sitting there at the end of February with tenants that haven't even started their moving process.  You do want to get them out as soon as you can and starting the eviction process as early as possible will be your best bet.

Account Closed · Answer

Evicting based on lease violations is really a waste of time and creates unnecessary bad will at this point. Give them notice of your intent to vacate the property the minute you close.  Then follow up with whatever the format is for lawful termination notice in your state.  I'd focus on the end date of the lease, and not the trash.  You need the tenants to use whatever goodwill they have left (which will likely be none) to focus on finding replacement housing and dealing with all their stuff. The property isn't going to look better after they leave, you can be sure of that.  Given that, I'd make a deal with them that they can leave anything they don't want to take.  This can really be a deal changer with getting entrenched tenants out and off the property.  Real hoarders won't part with anything, so it's of no help there.  But for people who have just accumulated a lot of stuff, letting them walk away can really speed things up.  Again, you accommodate for the dumpsters and trash and additional code violations in your offer.

How to remove a tenant with existing lease

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