Long term tenant in Triplex

[Matt Phillips]

I want to purchase a Triplex in North Carolina and 2 of the units have been renovated but one has not. The renovated units are renting for $650 each and have a one year lease. The other unit is renting for $325 on a month to month lease. The tenant is an elderly woman on a fixed income who has rented the unit for 8 years and I’m told is a hoarder - I have not seen inside her unit yet. I am putting an offer on the property and would like to bring the $325 unit up to par but don’t know how to handle the tenant. Would you give her a longer notice to find a new place or just leave her be?

[Scott P.]

If it was my money only in the deal, and if she pays on time, gets along with the neighbors, doesn't call me to come fix every towel drying bar that comes loose from the wall - and her "hoarding" doesn't cause an insect or rodent problem, I would probably let her stay for $325 because I'm too nice and i like long term tenants even at lower rates.

Maybe she would become my first Section 8 renter ever if Section 8 paid more than $325 in that area.  That way, I'd get closer to fair market value but she wouldn't have to pay more.  If she didn't quality for Section 8  and I thought she could afford more, then I'd give the required notice and raise the rent.  

I wouldn't worry at all about cleaning up after a hoarder if moving meant I could increase the rent to market value.

I also like the comments from other contributors about having the current Owner deal with the situation but I wouldn't let that condition cause me to loose the Buy if I otherwise wanted the property.

Good luck!