Problem Tenant

[Rick Camacho]

BP community!  I am negotiating a property which has a tenant that has failed to fail a single dime of rent for eight months to it's current owner and am working on how to get him out.  (NOTE: tenant has expressed interest in buying from current Owner.)  I need help from other landlords or property managers on what paperwork is required to notify him that I am the new owner. 

My plan/intention is to notify tenant that I am the new owner and will provide him the following options:

1,  He is being evicted and I will be seeking missed rent compensation from him through legal means.

2. Option to leave under terms that if he vacates in XX days, I will give him $XXXX, granted he leaves property in current condition and no additional damage 

3.  Sell property to him and give him XX to come up with money.   (In doing this, my intention is to test his motivation and desire to buy, as well as give me time to look for backup cash buyer.)

All those experienced landlords and others that want to contribute, what do you think of this plan and what are some concerns I should have going this route??

Thanks in advance! -Rick C.

[Joe Splitrock]

@Rick Camacho my guess is you are getting a discount because she wants the headache gone. For that reason I doubt she wants to deal with eviction. If she wanted to deal with that, then why not evict and put the property on the MLS to get retail? People have said it many times before. Find value by helping others solve problems. Her problem is this loser friend of her dead husband is taking advantage of her. She wants the problem gone.

Getting rid of the guy is key to unlocking more value to the property when you resell. I would stop by and let him know you are not a push over and you don't take kindly to people who screw friends and take advantage of widows. Explain to him that he needs to leave on his own immediately or you will move to evict him. Continue to explain that with an eviction and judgement for 8 months back-rent on his record, his dreams of owning a home will never come true. Renting will be difficult with an eviction on his record, so it is in his best interest to leave now.

I am not saying to threaten him. Just lay out the situation and explain that you are just trying to help him from making a big mistake. 

Option 2 is to wholesale with the trouble tenant there, but you will need to disclose the situation to the buyer, so expect to discount even more since they have to deal with the problem.

Maybe when the guy finds out the widow is out of the picture, he will just move along. He probably finds it easy to take advantage of a widow but will probably not be as lucky with you. 

Thanks for your service to the country and good luck my friend!