Tenant Selling Used Cars - What to Do?

Tenant Selling Used Cars - What to Do?

Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes

I have an overall good tenant who i inherited from the previous owner who is polite, professional, and pays on time BUT she also appears to be selling/dealing used cars in addition to her 9 to 5.  This property is a triplex in a nice neighborhood - she has her own garage and long driveway, but keeps parking used cars in other tenants' parking areas.  There are currently 6 cars belonging to her at the property.  The tenant in unit B is super laid back and told her it is ok if she parks in his area since he only has one car.  Unit C has been vacant for this month but I'm trying to fill it and several people have remarked/questioned all the cars in the driveway - makes it look like a lot of people are living there.

I've spoken to her about this before and she always moves the cars when I ask her to.  Today, however, she sent me a terse response that she doesn't understand what my problem is (previous landlord never had an issue with it) and that she will not be renewing her lease, which expires 1/31.  Normally these units rent within a week, but winter is a tough time to find good tenants.  

Do I allow  her to continue parking all these cars just to keep her through the winter or should I say good ridance at this point?  

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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
8y
I would not be afraid to let her go end of January. I would tell her the lease renewal has a two car maximum. If she needs a short extension to get rid of the additional cars or move you would be fine with that but the new policy is to be fair to everyone.
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  • Morgantown, WV · Member since 2017 · 22 posts · 19 votes
    8y
    My opinion is let her go on the 31st. If you tell her she can continue with the used car business to get through the winter then she may take advantage of this gesture and not be so willing to leave in the spring. The other option may be to pitch her an idea as if it is hers. Something to the effect of “January is a tough time to move bc of weather, I’ll do you a favor and let you stay through March/April”. Something to that effect may work for both parties but I’d suggest biting the bullet and let her leave on her own accord.
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    8y
    I would not be afraid to let her go end of January. I would tell her the lease renewal has a two car maximum. If she needs a short extension to get rid of the additional cars or move you would be fine with that but the new policy is to be fair to everyone.
  • Investor · Post Falls, ID · Member since 2016 · 606 posts · 699 votes
    8y

    I would let her go just because of the threat.  If she were my tenant, I would have already issued a cure or quit because my rental agreement forbids running a business out my apartments.  

    You can rent apartments any time of the year.  Demand goes up as soon as people start getting their tax refunds in February.    

    My standard response to tenants saying "the old LL let me do ______" is to say "Old LL was not making any money.  That is why he sold the building."

  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    8y

    Ericka,

    Move on, she is nothing but a problem. Obviously, she has no respect for you, and I don't think that is going to change anytime soon.

  • Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes
    8y
    Ok thanks for the advice all. My gut says let her go, it being winter is the only thing that gave me pause. It is good to hear that there may be an uptick in interest in Feb as folks start to get their tax returns. In 10 years as a landlord this is the first time I’ve had vacancies during the holidays and it has been such a pain that I’m hesitant to let anyone go. I like the suggestion of making it seem like her idea to stay an extra month or two to avoid moving in dead of winter - she is also pregnant and due in spring. That said, it is clear she is “testing” me and I know I can get ~$200/mos more for her apartment than what she pays. I think the previous owner gave her a bit of a deal because it was winter. I will let her go and hope we have an early spring in ATL
  • Professional · Nokomis, FL · Member since 2013 · 123 posts · 99 votes
    8y

    Assuming it is in Georgia, she could be breaking the law (curbstoning) and you could be in trouble if you allow it, so getting rid of her is your smart move.

    Curbstoning is selling of 5 or more used cars without a license.  If she does have a license, she is in violation of running a commercial business out of a residential zoned property, so its a lose-lose for her.

    - here is a link to the law passed in 2007

    https://giada.org/wp-content/uploads/2017/01/ocga-...

  • Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes
    8y
    Edward Hamill hmmm, yes this is in GA and it does look like she is breaking the law based on this as she is over the annual limit allowed. I will use this if she gets snippy again about moving the cars.
  • Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
    8y

    Don't take a KNOWN bad tenant out of fear of vacancy.

    You can find a good tenant in time, but you can never fix a bad one.

  • Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
    8y

    I would let her go.

    On my lease agreements the tenants have to park at their assigned spaces (if it's assigned) or if unassigned they must register with me their brand/model/plate numbers on "authorized vehicles".  Besides registered cars the only other vehicles allowed would be guest vehicles.

    If she's buying and selling used cars do they have plates on them?  

    If her lease ends January, and it's already close to the end of December now, don't you need to have a renewal secured and signed typically not less than 60 days?  I typically let tenants know 90 days prior to lease expiration and they need to sign a renewal not later than 60 days prior.  

  • Member since 2016 · 13k+ posts · 12k+ votes
    8y

    Good riddance. Never allow a tenant to operate any business out of a rental property. It is likely counter to local building codes and places you at a high risk of liability. A residential rental property is not a business location. You should have put an end to the practice when you took over the property. By only asking her to move the vehicles you were lax in your responsibilities to all your tenants.

  • Realtor and Investor · Scottsdale, AZ · Member since 2017 · 1k+ posts · 1k+ votes
    8y

    Let it go, let it go

    Can't hold it back anymore

    Let it go, let it go
    Turn away and slam the door
    I don't care
    what they're going to say
    Let the storm rage on.
    The cold never bothered me anyway

    LOL....I find that when dealing with Tenant's and their threats, it's best to consult Disney.

    In all seriousness, let this Tenant go.  Her lease most likely prohibits her from running a commercial business from her unit.  You can issue her a Cure Notice.  This is basically a violation notice that she has to correct within 3 days.  If she is not compliant, you have grounds to evict her.  

    When you have these types of issues, you really should be documenting them through the lease paperwork that you have in front of you.  The lease is your guide, and serves as your instructions for everything that comes with the relationship between Landlord and Tenant.

    When a Tenant bucks up like this and threatens, they are trying to leverage a power over you.  Once you give that up, you're sunk.  You must remain in control.  I like to think of it like a parent/child relationship.  It's not meant to be derrogatory, but rather to illustrate how Tenants can be similar to children in that they are constantly pushing boundaries.  It is your job as the parent/landlord, to redefine the boundary and enforce it so that you both have security in that relationship.  You may find that when you reinforce that boudary with this Tenant, she backs down and becomes compliant....or she moves out, and makes way for a new Tenant who won't scare off the other Tenants.  Either way, it works out for you.

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