Do I move forward with filling the eviction? OPINIONS APPRECIATED

Do I move forward with filling the eviction? OPINIONS APPRECIATED

Rochester, MN · Member since 2017 · 6 posts · 1 vote

I'll try to keep this as short as possible. I just recently purchased a 4-plex (closed Dec 22) with an FHA loan. One of the purchase agreements was that the one of the current tenants needed to be given a notice of non-renewal on their lease and needed to vacate by Jan 31st so that I can fulfill my FHA requirements of occupying the property. Come January, said tenant did not have rent by the 3rd (their current grace period) in which I contacted him and informed that my leases give until the 5th and that he would have another 2 days before late charges would be applied. On the 5th the rent was still not there so I posted his 5-day notice to pay or vacate by eviction. I also sent him a message asking if we could talk about the situation. I was able to make contact the next day and was told he didn't have the rent due to he is unemployed (this I know) and needs his next check to cover the costs of the new place they are moving into. He also stated that he and his family are planning on being out by the 10th anyways. For all I know he could just be saying that though. But not knowing that, I told him that if he can be out by then and we are able to do the move out inspection by the 11th we would not move forward with the eviction and would just deduct his January rent and late fees from his security deposit. I followed up with him yesterday asking if today or tomorrow would be best for his move out inspection and have yet to hear anything back.

My main question here is since I know he is moving out by the 31st do I still move forward with filing the eviction or just wait until he is completely moved out and deduct his respective debts from his security deposit? I don't want to be a hard a** , but I still need to make sure I'm protecting my business as well. 

Any opinion or advice will be greatly appreciated! Thanks. 

0Reply
26 views

8 Replies

Jump to latestLatest
  • Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    8y

    Don't assume anything file an eviction. That takes several months to schedule after cleared by court.

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

    Justin,

    Try sitting down with him and offering cash for keys; he hands you the keys, you hand him a check for his deposit and a few bucks extra. Usually works and gets rid of him, And you could then occupy the property in time for your FHA requirements

  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    8y

    If it were me, I would continue to try to get ahold of him to get a signed notice of move out this week.  Unless a move out inspection with him present is required, don't stress that part, just invite a friend or someone to join you when you do the walk through solo, and take lots of photos.  Your main concern is to get him out, hopefully with proof that he is ending his tenancy early due to non-payment.

    Move forward with serving the 3 day notice or whatever the required step is for eviction, without doing the expensive part of filing.  We like to have things in place so we can file if we start to feel like they aren't really leaving, but are reluctant to spend the money unnecessarily.  If you do get a chance to talk to him explain that he is impacting his prior landlord reference with you, and an eviction will be even worse for him.

    Consider cash for keys as well.  If he just needs a few nights in a cheap motel or some hired moving help or.... figure out what his stumbling block is and see if you are willing to solve it.  We are normally willing to pay a few hundred dollars to get them out and turn it back into income producing, but your situation depends on what the true cost and hassle is in letting this play out awhile longer.  You may want to find out how long evictions normally take in your area and use that as a guide of when you would file.  I like to wait it out, but no guarantees that he will move by the 31st even; if he is unemployed he will likely struggle to find new housing.

  • Royal Oak, MI · Member since 2015 · 257 posts · 230 votes
    8y

    FHA doesn't drive by your house and knock on the door on the 31st day to check and see that you are living there. I wouldn't normally say to commit mortgage fraud, but I would have a hard time believing that they call your loan due if you are truly evicting a tenant in order to move in and claim residency there. I would not do cash for keys. Let the guy play his cards and continue with the eviction process.

  • Rental Property Investor · VT · Member since 2017 · 233 posts · 147 votes
    8y

    Let them know if they follow through and you can do the final walk through today/tomorrow as planned, you'll give them part or all of the security deposit back, kind of cash for keys, but at least not money out of your pocket. If not, you keep it, and also move forward with eviction. You'll know within 48hrs which way it's headed.

  • Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    8y
    Originally posted by @Shaun C.:

    FHA doesn't drive by your house and knock on the door on the 31st day to check and see that you are living there. I wouldn't normally say to commit mortgage fraud, but I would have a hard time believing that they call your loan due if you are truly evicting a tenant in order to move in and claim residency there. I would not do cash for keys. Let the guy play his cards and continue with the eviction process.

     From what I have heard, the actual verbiage you agree to is that you INTEND to move in within 60 days of closing, and as long as you have proof you are making reasonable efforts to move in they cannot call loan due.

  • Rochester, MN · Member since 2017 · 6 posts · 1 vote
    8y

    @Sam Shueh @Kim Meredith Hampton @Michele Fischer @Shaun C. @Megan Phillips @Andrew B.

    Thank you all for your opinions. Luckily we were able to move through the plan with the tenant being out and the inspection was completed on the 11th. I can say that this being my first move-out inspection and it being a younger couple ( with a child ) with both sets of their parents there at time of inspection was a great first experience, lol. It all ended up working out perfectly and giving us plenty of extra time to do some rehab before moving in. 

    Once again thank you for all of your insights! 

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

    File the eviction, and continue through the process until you either receive the funds, or are awarded the judgment and have him physically removed.

    It is VERY SIMPLE to retract an eviction action after payment is received, so there should be no reason why you wouldn't continue.

    Tenant's are smarter than you give them credit for.  They are dangling a carrot to buy more time.  

    Your eviction clock doesn't start until you file, so the later you wait to file, the longer it will be before you get money and/or a vacant unit. BTW, you only have 60 days to occupy in order to be compliant with your FHA loan. So, time is not on your side. You have to take action.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.