Renting out a house you don’t own?

Question

Hi Bigger Podcasts Community,

I have a very interesting season and would greatly appreciate some guidance.

My partner and I recently purchased a 4-unit rental property in Oakland in January and are finishing up renovation for the two money-maker units out of the 4. The property includes two other units that are in poor condition. We will begin renovation after tenants move into our two renovated units. Here’s where it gets interesting:

One of our units was blocked off with wood planks, but there was an individual (we have no idea who they are) who ripped them out, took pictures, and drafted a fake written lease contract. Let’s call this person Mike. Someone took up Mike’s offer, and has now moved into this unit under the fake contract he made.

We are in the process of reading up on Oakland laws and contacting the authorities. Posting on the forums is our other first step to gain some extra insight. As unique as this is, has anyone experienced this? Regardless, is there any insight the community can provide for us?

Thank you in advance!

Frank Jevitzky · Answer

Account Closed said, speak to them and get as much information as possible. If you can work out a solution for them after consulting an attorney (even if just a short-term rental after putting them through your application process and them qualifying), you could save yourself some headaches and hassle. Just make sure they go through your application process, sign your lease agreement, and agree to your terms. This could at least give them a bit more time to get back on their feet.

Account Closed · Answer

Taylor, squatters have rights in some jurisdictions. And cops don't always follow the law, I 've heard stories where cops violated laws removing squatters. I would talk to a lawyer, to make sure your not opening your self up to potential litigation.

Account Closed · Answer

Taylor thanks for giving me something new to worry about!

jk/ happens all the time in NYC.

Please follow up with us, your tales will be interesting.

Dick Rosen · Answer

You will likely have to evict them

James Wise · Answer

You'll have to evict them just like you would need to evict any other tenant. Or I suppose you could just start collecting their rent if you really believe their story that they paid "mike" and didn't just break in themselves. Making lemonade out of lemons kind of thing.

Taylor Matthews · Answer

@Arlen Chou I did tell the people that they would need to move. They have only been there for a day or so. They do not want to leave after talking to them as they have paid money to the "landlord" already. I did talk to a lawyer and brought this up with the Oakland police department. They sent out a car to take ID's and statements however they did not evict on the first visit. Working with the department to get them out asap.

The utilities are under my name which is a plus as that can prove residency for me and not them.

Will keep everyone updated. Thank you!x

Arlen Chou · Answer

@Taylor Matthews I hope you are reading fast and that the people who have moved in have been told they need to move out... Time is against you on this issue.  If you leave the people in place they will essentially become tenants and who knows what they are paying and to whom...  Hopefully, the people have not been there very long and they understand the situation and will move out.  If they won't then you might have some serious issues.  If talking to them did not work and they don't want to leave, you need to get an attorney asap.  Did you contact the police that they were trespassing?  You need to establish a paper trail that they are their without your consent.

In the future, I would highly suggest that when you have tenants move out that you immediately put the utilities in your name with a notification that the billing cannot be changed without your specific consent.

Good luck to you and let us know how it goes!

-Arlen

Sam Shueh · Answer

That is very common even in SFBA.  You should have installed monitoring cameras. I have seen in so far as sold your complex pretending they are owners taking cash deposit and disappeared.  Sometimes the tenants are OK work out some thing now you got tenants.

Shelley F. · Answer

Just went through the same thing! Have a house in renovation...but its been a slow start. No bathroom fixtures...just a hole in floor where toilet had been...most of the copper wiring ripped out. Other projects have been ahead in line so this one has been vacant. I met a neighbor a while back and exchanged phone numbers. He called me a week ago to let me know that people were moving in...and when he asked they said they rented it. I said NOPE and he called the cops. These folks had a bogus lease, and paid someone 400 bucks. Cops told them to move along. They said they were renting a 'fixer upper'...lol

Taylor Matthews · Answer

Robert -

Will do! Any advice to make sure we can tell a happy ending tale?

Renting out a house you don’t own?

Most Popular Reply