Not renewing a lease - elderly tenant? Advice pls!

[Kristine Libby]

Hey guys, 

Wanted to get your feedback on something. My husband and I own a SFH in the Bay Area and we're considering not renewing an annual lease. Our current tenant has been there for about 3 years now. We're on the fence though and wanted to get some suggestions on what other people think.

Reasons to NOT renew:

- She's currently paying way under market (We estimate we can get another $350 - $400 / monthly)

- She is really tardy with her utilities and even had a lien placed on our property back in April.

- She calls us for a lot of minor maintenance issues (we're fixing something about every 3 months).

Reasons to renew:

- She's in her mid-60s and her dad lives with her.  We just feel bad kicking them out with the rental market being so competitive in the area. (She does have a few children in the area, so she might have some options).

- Cost of vacancy + risk of not being able to rent it out.

We were thinking of giving her 3 months notice and using the reason of the lien and that we want to do renovations on the property.

Some of my concerns are:

- She might try to find a way to sue us.  She seems pretty litigious.  (Can she sue us if we're just not renewing)?

- She might do something to damage the property (more than the value of her security deposit).

- She might not pay her utilities.

- She might refuse to leave.

Has anyone dealt with this in the past? If so, what did you do?  We're trying to do what's right, while still making good business decisions.

Thanks!

[Thomas S.]

If, as Arlin states, you can raise the rent do it.

Make sure you know the law and then if allowed raise her rent $400. She will likely leave but if not you need to begin intensive tenant training.

If you have owned the property for three years you are the problem, not the tenant, due to poor tenant management.