Tenant caught subletting and now I have to evict the subletters

[Marc Izquierdo]

Hi everyone,

I finished up the rehab on my first rental property at the end of February and am already having major issues with my new tenants (despite using the screening techniques taught in The Book on Managing Rental Properties) .  I caught them subletting (written agreement and all) to another couple.  Initially, my tenant called me and said that they had had guests over for a few nights to help them get back on their feet and now are refusing to leave.  I had the police go to the property and attempt to remove the guests.  The officer called me and said that the guests had been living there for about 2 weeks at that point (he responded to a call a few weeks ago at my property and saw them living there).  He told me that they had established residency, he could not remove them, and that I would have to evict them.  After discussions with the guests and my tenants, I discovered that they were actually subletting and had paid a security deposit to my tenant.  I went to the property and gave written notice to the guests to vacate.  15 days will be Wednesday, April 10th.  After the 15th day, if they have not vacated, I will file for eviction.  I recently talked to the guests and they said that they will not leave because my tenant owes them their money back.  I told them that I'll still be filing for eviction on the 11th if they have not left (passing legal fees back to my tenant).  The guests said that they will be getting a lawyer as this is "not right".  I relayed to my tenant that it is likely more beneficial for them to pay whatever money is being requested instead of paying the cost of an eviction.  That is where I left it at this point.  I was wondering if anyone else has run into something like this and what advice you may have.  I'm shocked that someone can walk into my house, not on a lease, and "establish residency".  I have no idea who these people are and just want them gone!  I'll deal with the repercussions that my tenant will be facing after the guests leave.

Thanks in advance!

Marc