Inheriting renters/lease violations

[Andrew DeWeerd]

Hey BP - I am closing on my first REI now, a duplex. In the inspection process I learned that both sides currently have pets and I know one side is smoking inside of their unit, both things a violation of their current leases that I’m inheriting. I’ve asked several local investors who advise me to not do anything about it as long as they’re paying, but what advice would you all have for me? They both are on year to year leases with about 9 & 10 months left. Thanks

[Nicole A.]

You will find that you have to choose your battles. They have a point that if the tenants are paying (and on time), then do you really want to deal with a vacancy right off the bat due to pets and smoking? 

You will find that tenants many times will have violations like this, and you will have to decide if you stick to principle that they're lying to you and you evict them over it (which will possibly be much more difficult to do than to evict for nonpayment), or if you just look the other way as long as they're not causing damage. You could do more frequent inspections, but never expect your rentals to be the same as your personal home.

I honestly agree with your local investor friends that if the tenants are paying on time, to keep them for now. If the numbers work, move forward. Do not delay closing or possibly lose the deal because of fairly trivial things. You can introduce yourself to the tenants when you close on the place, and kindly but firmly inform them that smoking MUST be outside, and the pets either need to be rehomed or an immediate monthly pet fee will be applied (that is within your area's laws on fees).