Tenant's Odd Behavior

[Michael Ash]

All: I'm looking for some advice. My Tenant moved into my rental home (4/2) 5 months ago on a 6 month lease term, goes month to month after that. The tenant pays on time and lease states that she and her two grandchildren (18 & 13) would be the only tenants in the home. Her car and her granddaughters cars will be the only cars on the Premises. They pay on time every month and I have no complaints about them...great tenant.  

However, a neighbor has been complaining the last 3 months that there are hoards of people coming and going from the property every day and that there are cars there at all hours of the day and night and that there must be some type of drug dealing or other suspicious activity going on. Neighbor states that there are young men who loiter outside all the time, sit in cars all the time, etc...

When receiving complaints I have driven by and find the property has 1-3 cars but no one outside and nothing like the situation he describes.  I have gone by many times based on his complaints and never really see what he is seeing. Therefore, it appears Tenant is in compliance with my lease and that I can do nothing. I have told him to call the police if he suspects something unlawful is happening. He texted me the other day that if I didn't do something, "something bad was going to happen" because he was tired of all these "tweakers" being across the street from him.

I figured that I was doing the right thing until yesterday when the other neighbor called and basically reported the same thing. 

I have been in the home recently and was quite impressed by the cleanliness of the home and good condition that the tenant is keeping it in. I have asked the tenant about other people living there and reminded her that any additional adults living there would cause an additional $150/month in rent. She stated that the people coming and going are her children and their spouses and all have their own homes/apartments and do not live there.

What should I do here?

Lease is expiring in a month. Should I terminate this perfectly good tenant who is paying an above market rent in order to pacify the neighbors? I see no violation of my lease and no evidence of foul play at the home. It's a mystery. But when someone starts threatening and other people start complaining...now I'm concerned...

Best,

Mike