First deal and tenant is a drug dealer!

[Matt Blutowski]

Sorry, this is complicated, but I want good advise from any/all, so I'm going to include some details.

I closed on my first duplex two weeks ago. The property was fully occupied and according to the previous lease, I'm stuck with the tenants unless they break the lease.

Issue 1: One of the three people living in UNIT 2 moved out and has not been paying there share of rent. Initially the remaining tenants in unit 2 said they were not going to pay the entire rent, but now they say they will. They also planned to sue the third tenant. The tenant that moved out just contacted me. They will pay me all the rent due for the remainder of the lease, but they want to be removed from the lease. Basically, I create a new lease with the two current tenants for 2/3 of the rent and receive the other 1/3 up front for letting tenant 3 out of the lease. A good solution, until I learned WHY tenant #3 wanted to move out of UNIT 2.

Tenant three claims that UNIT 1 is being occupied by a coke dealer. I suspected something was not right about unit 1 before I was told this. Two other people familiar with this tenant/property have said things before. UNIT 2 pays rent on time, though the lease is for 1 person, but there are two people living there and a dog. They are not allowed to have a dog, nor is occupancy two people.

Apparently, two tenants of UNIT 2 are customers of the tenant in UNIT 1 and there are drugs there all the time. A tenant in Unit 2 has a criminal record which includes several assaults as well as a rape (found not guilty). The suspected drug dealer in UNIT 1 has no record.

I'm supportive of a new lease for UNIT 2 that does not include that third teanant. However my larger concern is the teanant in UNIT 1 and his drug dealing. He is in violation of the lease (with dog and second occupant)? I don't want to cross this person, but don't want my new property on TV news with busted doors, etc.

Again, these tenants were not mine, but I have to live with them or try to evict for cause. Unit 2 lease ends in April, UNIT 1 lease ends in August. The previous landlords were absentee landlords.

Any helpful advice would be appreciated!!! Should I just try to ride this out until the lease ends, or use the dog as a path to evict??

[Ralph S.]

Congrats on taking the plunge. Now realize there are many new experiences coming your way, and they are situations that happen every day, and some handle it well, others poorly.

1st. Turn off the fear. You're in charge. It is your duplex, not theirs.

2nd. Learn, if you don't already know, the landlord tenant laws in your state/city. Abide by them, to the letter. Some of what I suggest below are ok in my area, but may not be in yours.

3rd. Your concern is for your investment, and maximizing your return on that investment. Period. You'll never rent to you, someone who looks like you, or treats your duplex as you would. That's why you have to take the lead in keeping things up.

4th. It's not personal. Don't let yourself get drawn into an argument, feel you need to explain anything, or win arguments (you'll never win a argument with a tenant). If they violate, you issue a notice. Little, if any discussion.

Take the money from the threesome now twosome, and accept the reduced rent for the remainder. Deal with the end of the lease at the end of the lease.

Schedule a thorough inspection of both units, with proper notice. Maybe even schedule a pest inspection. Let them know you and you pest inspector will be opening every door, bedroom, closet and cabinet, and inspecting for signs of insects, rat holes in walls and corners, and treating/scheduling repair if necessary. Let them know you'll be checking all windows for proper operation, the furnace for clean filters, etc. etc. Let them know as the new owner, you want to make sure the duplex is as good as it can be. You are a responsible landlord that they can count on, and you're sure they'll be just as responsible in their obligations to you.

Let the suspected drug dealer know he can't have a dog or roommate. Not confrontational, just the way it is. Not according to the lease. If you are so inclined, offer the roommate an application to apply to be added to the lease, for an increased deposit and increase in rent, of course. As far as the dog, again, for a healthy non-refundable pet deposit and increase in monthly rent, you'll consider letting them stay. You're such a freakin nice guy, aren't you? Then hand him the 3 or 5 day notice to vacate or remedy. Be nice. It's his choice, not yours. He's in the drivers seat. His choice to either live up to his agreement, pay to change the agreement, or leave. His choice. Just another day at the office for you. No big deal. You're an old hand at this. You do this all the time.
Service with a smile. And be prepared to follow through with eviction if necessary. I suggest a lawyer write the five day, and let them handle the eviction if needed.

Welcome to landlording.