New property owner with month to month tenant
Professional · Cleveland, OH · Member since 2015 · 17 posts · 4 votes
Hello Bigger Pockets!
I have a sticky situation and I am hoping to get some advice. I recently just went under contact for a triplex in the Cleveland area. The front unit is a three bedroom 1.5 bath and I plan on living in that unit while renting out the other two, one bedroom apartments in the back. This is my issue, all of the tenant know one another either by a blood relationship or close emotional ties and I am asking the tenants that have lived there for 5 years that have been on a month to month for the past 5 years to move out so I can move in.
This is my question, what are some suggestions that you have about making the process as seamless as possible. I am having the seller give a 60 day notice so the move is no surprise to them (especially over the holidays) but how do I keep a good relationship with the tenants that are staying?
I am interested in all advice. Thanks in advance!
Hello Bigger Pockets!
I have a sticky situation and I am hoping to get some advice. I recently just went under contact for a triplex in the Cleveland area. The front unit is a three bedroom 1.5 bath and I plan on living in that unit while renting out the other two, one bedroom apartments in the back. This is my issue, all of the tenant know one another either by a blood relationship or close emotional ties and I am asking the tenants that have lived there for 5 years that have been on a month to month for the past 5 years to move out so I can move in.
This is my question, what are some suggestions that you have about making the process as seamless as possible. I am having the seller give a 60 day notice so the move is no surprise to them (especially over the holidays) but how do I keep a good relationship with the tenants that are staying?
I am interested in all advice. Thanks in advance!
I think the most important element in this process if for you to keep the emotional element out of the equation and treat this as a business transaction 100%, everyone will be fine and everyone will continue to live together. This is the nature of a month to month, this is not your fault, these are the risks tenants incur when choosing to not secure a long term or timed contract, a month to month is what it is. Just think of the flip side, if the tenant who is month to month elected to leave you would have a vacancy join your hands, it is a 2-way street, at the end of the day you pay the bills. I do not think there is an easy way to approach this, I think you just need to pull the band-aide and call it a day. Change the locks when you move in, I suspect you have this planned out.
A 60 day notice is ample warning and very courteous/generous, again the best advice I propose is keep it professional keep the emotion out of it and operate your business, grow your wealth and enjoy your new home:)
#TeamTurnkey
Hello Bigger Pockets!
I have a sticky situation and I am hoping to get some advice. I recently just went under contact for a triplex in the Cleveland area. The front unit is a three bedroom 1.5 bath and I plan on living in that unit while renting out the other two, one bedroom apartments in the back. This is my issue, all of the tenant know one another either by a blood relationship or close emotional ties and I am asking the tenants that have lived there for 5 years that have been on a month to month for the past 5 years to move out so I can move in.
This is my question, what are some suggestions that you have about making the process as seamless as possible. I am having the seller give a 60 day notice so the move is no surprise to them (especially over the holidays) but how do I keep a good relationship with the tenants that are staying?
I am interested in all advice. Thanks in advance!
I think the most important element in this process if for you to keep the emotional element out of the equation and treat this as a business transaction 100%, everyone will be fine and everyone will continue to live together. This is the nature of a month to month, this is not your fault, these are the risks tenants incur when choosing to not secure a long term or timed contract, a month to month is what it is. Just think of the flip side, if the tenant who is month to month elected to leave you would have a vacancy join your hands, it is a 2-way street, at the end of the day you pay the bills. I do not think there is an easy way to approach this, I think you just need to pull the band-aide and call it a day. Change the locks when you move in, I suspect you have this planned out.
A 60 day notice is ample warning and very courteous/generous, again the best advice I propose is keep it professional keep the emotion out of it and operate your business, grow your wealth and enjoy your new home:)
#TeamTurnkey
Don't move in. PEROID!
Guess who's door the tenants are knocking at 2am when they have an issue and expecting that issue resolved asap. YOU! and guess what they know where you live.
My advise don't move in.
Steven,
You are exactly right. It is strictly business. I need to remove the emotion out of these decisions. Thank you for your response.
I agree with Steve. All decisions you make have to be treated as a business. There is no reason for you not to move in. You don't change your life and investment plans because you don't want to inconvenience someone. It was hard for me to take emotions out of the equation but unfortunately it's a business and must be treated as such.
To establish and maintain a good landlord-tenant relationship, start with respectful, open and honest communication. People and their needs are important components of this business. What you do and how you do it does matter. Think about what you mean by "It is strictly business." Be aware of the important aspects of human nature, including emotion. Landlording is a people oriented business. Don't ignore your intuition.
If I were you, I would not lose sight of the fact that your decision to force the move of one tenant will indeed impact the lives of the other two tenants who have developed a relationship with the one who was asked to leave. Yes, you have a right to move into this apartment, but it may not be easy for the remaining tenants to warm up to you. If the tenant who must move is treated fairly and kindly, you will be in a much better position. If you also provide something of value to the remaining tenants that makes living in these units better for them (more favorable rental agreement terms, quick attention to maintenance/repair needs, an upgrade that they have been longing for, a kind and respectful management style, etc.) they will be less likely to view you as a threat to their security and well being.
Also, don't think about raising the rent anytime soon. When one buys a tenanted property the number one fear existing tenants will likely have is that the rent will be raised. Allay this fear in your letter of introduction and you will immediately gain some of their confidence. If your goal is to raise the rent later, improve and add value to the units to the point where a rent raise would be reasonable.
Transition your tenants over to your rental agreement, in accordance with landlord-tenant law for your jurisdiction. Make sure your rental agreement is well written and the tenants understand the new terms. We prefer month-to-month agreements, especially when inheriting tenants. Prepare for the time it will take for you to get to know them and for them to get to know you and your management style.
Lastly, you will have a different type of relationship with these tenants because you will be not only their landlord (or landlady as the case may be) but also their neighbor. Clarify both roles and strive to do both roles well.
I suggest that you do not move into this property unless you enjoy spending the next time period of you life being harassed by your tenants. People are very emotional, and you will be sending their family elsewhere. They will have a fight to pick with you and you will just overly complicate the situation. The best thing you can do is look for somewhere else to live.
I wouldn't of told them you were the owner. I would have simply said that I am the property manager who lives on site. That way you can take their side but say that you're just doing your job. I like what Marcia had to say.
Good luck!