Repairs and Inherited Tenants

Repairs and Inherited Tenants

Rental Property Investor · Raleigh, NC · Member since 2016 · 49 posts · 15 votes

So I have inherited this tenant couple from the previous landlord. After observing the property for a while, I've come to the conclusion that the landlord was very lax with the rules and these tenants are going to be a bit challenging. For instance, the landlord gave them verbal permission to paint the unit. They chose a tasteful paint but they only painted half the apartment (all rooms minus bedrooms) and have "too been busy with work" to complete. Since they already did this before I picked up the property I did not make a deal of it (instead I've been trying to make them pay their rent on time). I've asked them to finish the job asap and to return it to original state when they move or be liable for the cost of doing so. I am not sure how to enforce this.  

And then their ceiling texture started to peel off at different places soon after they moved in so naturally they want me to repair it. This is fine because I deemed it as "natural wear and tear" rather than something they did. However, after talking to my GC, who recommended a full ceiling popcorn removal, they got the impression that the apartment will be under construction and they are trying to figure out if I am going to reduce rent. They don't want to pay rent for a place they can't stay in. 

So in cases where the unit may need such work, what do you do? Personally, I am planning a strategy of only repairing areas where the peeling is excessive i.e. the guest bathroom and guest bedroom. And thus they will have access to their home. I don't promise any discounts. What would you do? 

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  • Contractor · Fort Worth, TX · Member since 2015 · 379 posts · 740 votes
    9y

    When you say you're "trying to get them to pay the rent on time," that tells me you're investing too much in these guys. I set expectations properly - OK, the old landlord did it this way, but I don't work like that. Set the expectation that they pay rent on time, or as soon as it's late, hand 'em a notice to vacate.

    When you inherit tenants, you're bound by the terms of the lease. If it's a M2M lease, then you have more flexibility, of course. Do they have time left on their lease? If so, you have to fix safety issues, or whatever issues are called for by the terms of the lease. I'm not sure why you'd be worrying about ceiling texture for tenants who sound less than great. That's usually not something a landlord is required by the lease to fix. (I'd do it for a great tenant, but not for a new or challenging one.)

    You should've received their security deposit from the previous owner at closing. Did you? So your recourse on the paint is to remove it from their security deposit when they vacate.

    You don't really want to be a hardass, but you do want to set expectations clearly and not let yourself be taken advantage of. Oftentimes, when a previous landlord has been lax, the tenants have been 'trained' poorly. If they don't get it when you reset their expectations, you just need to ride it out until their lease is up, then decline to renew.

    Good luck!

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    9y
    Do the bare minimum to keep the place habitable and do not renew their lease when it comes time. Once they are out renovate to your standards and find some good tenants.
  • Rental Property Investor · Raleigh, NC · Member since 2016 · 49 posts · 15 votes
    9y

    @Michael HayworthI've already given them a notice to vacate the first time they were late. They paid with a late fee after I put out that notice. I also let them know that the cost to restore the color is coming out of their security deposit if they don't paint it before vacating.

    They are M2M and I've increased their rent hoping that might encourage them to leave. Instead, they want to get onto a yearly lease. But it seems they will be late again. So I am not keen on putting them on a yearly lease. Specially since I did not get a chance to do background checks, etc, on them. At this point, I will not be offering them a yearly lease. It is harder to break one of those. 

    I'm actually quite a hardass about these things and have enforced many rules to beautify the property and improve its upkeep. But what you've said about the ceiling upkeep makes sense. I don't view it as a habitability issue that's why I am only fixing small areas where the drywall is exposed and there is moisture in the air i.e. the bathroom and one bedroom. Also it allows me to raise rent if I do some of these repairs. 

  • Rental Property Investor · Raleigh, NC · Member since 2016 · 49 posts · 15 votes
    9y
    Originally posted by @Max T.:

    Do the bare minimum to keep the place habitable and do not renew their lease when it comes time. Once they are out renovate to your standards and find some good tenants.

    They are on a M2M and I increased their rent and they've agreed to it. They are adamant about converting to a yearly lease but it appears to be a bad idea to convert them. They have been late on rent with the current rent so I am inclined to believe they'll be late with the new rent as well. It's hard to define if ceiling delamination makes the place uninhabitable but I wanted to get it done in the bathroom at least to prevent moisture related damage. 

  • Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
    9y

    @Reaz H.

    Why are you messing with these guys.  Follow your states land lord/tenant laws, give them the 30 days and get them out.  WHY would you want a year lease with these people?  get them out paint the house, mitigate the ceiling and be thankful your first Land Lord lesson was so cheap. 

    Don't forget the asbestos assessment when you fix the ceiling, nobody has mentioned that some older popcorn ceilings were made from Asbestos.  a partial repair may not work, and in many states you can be held liable for not mitigating that properly.  did you have a home inspection done before you bought the house?  beware that if you know about asbestos in the property or even if you don't you could have serious problems down the road with future tenants.

    RR 

  • Rental Property Investor · Raleigh, NC · Member since 2016 · 49 posts · 15 votes
    9y

    The home is built in 1980. No asbestos. I felt that the rent increase would have them move amicably but it seems that it did not work. This is going to be my second month with them and so I wanted to give them a fair chance. But now I am leaning towards non-renewal and giving them notice to leave. 

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