Evictions

[Candy Quirino]

I am a new real estate investor and bought a 4plex which at the the time seemed like a great deal. Asking price was 84,000 I offered 79,000 and got it. Came fully occupied with tenants but after the 1st month they were refusing to pay, now I am down to the last 2 tenants gave them 30 day notice due to missing payments had court they did not show and currently waiting for the call back from the sheriff to get them out of the property. What else can I do to get them out,also would I be in trouble if the water gets cut? I am making the payments on the property just coming up short to pay for that....I don't need any more legal fees....

[Marcia Maynard]

We haven't had to do many evictions, but when we did we stayed in contact with the tenants and provided them with packing boxes and strong 3 mil garbage bags prior to the sheriff lock-out. We gave them enough information to prepare them for the reality that the move was imminent, without telling them the actual lock-out date. By showing some empathy and not anger, we were able to get tenants out without much damage to the unit. Be firm and fair. Remain polite, even it the tenants are not. Keep an eye on the property.

On lock-out day have movers ready and be prepared to immediately change the locks. 

Never shut off utilities or cause the utilities to be shut off. All landlord provided utilities need to remain on. However, if a tenant doesn't pay their utility bill and it results in the utility company cutting their utility, you do not have an obligation to restart the utility for them. If this happens, give notice to inspect the unit as soon as you can. We have seen tenants without electricity do crazy things, like: use candles for light (resulting in burns to kitchen cabinets, candle wax in carpet, and removal of beeping smoke alarms); run an extension cord from a neighbor's patio to a power strip in which they plugged in more extension cords to lamps, the refrigerator and the gas stove (for the digital display). No water service can result in some disgusting toilet matter. No garbage service can result in piles of trash which can attract insects and vermin. No heat in winter can result in frozen pipes.

Why do you think four of four units decided not to pay rent from the start of your ownership? Were they paying prior and suddenly stopped? Do you have copies of the leases they had with the previous owner? How did you handle the change in ownership? How did you introduce yourself? What changes did you initiate? How did you manage the adjustment period? Did you get the tenant files and tenant security deposits from the previous owner at closing? 

Purchasing occupied units can be rewarding, but it also can be challenging, depending on how well prepared you are and the characteristics of the tenants. Good luck!