Inheriting Elderly Tenants

Inheriting Elderly Tenants

Investor · Reno, NV · Member since 2015 · 167 posts · 90 votes
Hello BP, I'm in contract on a nice little rental house that has some great potential, there is just one catch. The existing tenants (very nice people) are an elderly couple (75+), on a fixed income, have a laundry list of health issues, and have a ton of stuff in the house, not hoarders but more stuff than 2 people should have. They are paying $850 and market rent should be $1000. My agent said the bring in $2200/mth but have no other debt or payments. They are stressed about having to move (it would stress me out facing packing all that stuff up) and willing to pay more to be able to stay. I feel we just screen them like new tenants and if references check out I'm leaning towards continuing with them, although they are below the 3x rent income requirement. The property would probably need $3-5k in carpet and paint to ready for new renters so it would he great to have a good built in tenant for a while. Anyone have a situation like this go bad that can share some things to watch out for?? Thanks
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Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
10y

I'll get jumped on by the hard nosed landlords, but if you're $150 down and if you get them out of the property, it'll be down for two months and it'll cost you $5k to redo things. So you're down 2x850 +5000=$6700.

Which will now take you $6700/$150=45 months. Not to mention that 45 months is above most tenancy lengths, so expect one turn around which will be another $1000 lost.

So, 45-51 months to get yourself ahead again.

They suddenly don't seem like such a bad deal now.

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  • Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
    10y

    I'll get jumped on by the hard nosed landlords, but if you're $150 down and if you get them out of the property, it'll be down for two months and it'll cost you $5k to redo things. So you're down 2x850 +5000=$6700.

    Which will now take you $6700/$150=45 months. Not to mention that 45 months is above most tenancy lengths, so expect one turn around which will be another $1000 lost.

    So, 45-51 months to get yourself ahead again.

    They suddenly don't seem like such a bad deal now.

  • Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    10y

    Let them stay at an affordable rate and count your blessings. If you want to make their life easier, offer to replace the toilet with one that is chair height (also known as high boy or ADA compliant). We do that for our elderly tenants. We also install extra grab bars in the bathroom. It is a minor investment for us and does a world of good for all.

  • Investor · Colorado Springs, CO · Member since 2013 · 643 posts · 280 votes
    10y

    @John Kesner

    It makes financial sense to keep them in the home and you can be a kind person at the same time. It is a great position for you to be in. @James DeRoest ran the numbers above. Forcing them out and renovating the property means you will drop a ton of cash immediately and it will take you a long time to make up that expense. When they eventually move on you can renovate the property and raise the rent. No need to do it now.

    Mike

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