New Landlord advise.. Evict? Or wait it out...

[Jeremy Mattson]

Hi All, 

I am looking to get your opinion as to what you would do if you were in my situation.. and what I potentially can do.

Situation:

I have some not so ideal inherited tenants that I have been living next door with for the last 8 months. I have issued numerous notices included notices to pay, notices to pay (utilities), notices for violating their lease (smoking.. not shoveling).. the list really could go on.

A week or two ago I needed to completely replace the furnace of the unit. The unit was old, but also overworked as my tenant continues to leave their windows wide open in the middle of a Wisconsin winter. I assume the windows are open because they are smoking or some other activity.. The place is a complete mess and I know she has a $600+ water bill that hasn’t been paid and will eventually hit my taxes if she doesn’t pay it off. For the last several months I have worked with her to pay me back on a bi-weekly basis to pay off her $1k+ 2018 water bill (Literally just finished these payments).

Her lease is up at the end of June

So here is where I need you advise.. Would you

1. Stick it out and suck it up till the end of June to avoid the cost of an eviction (assuming you can get her to pay her utilities and rent).. The place is trashed and will need a full renovation, so at least this option would give me additional time to save up for the renovation.

2. Give her a 5 day notice to pay (utilities) or vacate? She is month to month and will not be able to afford another $600 payment. If she doesn’t pay issue a 14 day notice to vacate

3. Inspect the property and give her some sort of notice for the damages she is causing (I feel as though this is the most difficult route).

Your thoughts are greatly appreciated! 

[Marcus Auerbach]

@Jeremy Mattson you can get only as much money as she has. It doesn't help to be right if you don't get paid. Clearly you don't want to rent to her anymore and these situations have a nature of only becomming worse with every month that passes. Sounds like she is on a month to month lease, so you can just give her a 28 day notice. No point in waiting until June.

I always opt for cooperation and would tell her that you need the unit back, but will work with her to find a new place. She may not be able to afford to move. You might even offer to pay for her move etc - cash for keys is still cheaper than an eviction and often the smarter option. This way you create leverage, that you currently don't seem to have anymore.

Inherited tenants are always difficult, because they feel they have seniority over the new owner. Its always best to find your own tenants. Most of them are awesome and don't let this spoil your investment career!