Tenant won't move out - what would you do?

Question

Hi BP friends!

I'm planning on selling a rental this summer. I have a long-term, stable tenant. Her lease was up in January, which is when I originally wanted to sell, but she asked if she could stay until the end of May so her grandson could finish out the school year. So, here we are in May, and she's had over 7 months of notice.

She isn't being hostile or anything of that nature, but simply is having a hard time finding a new place. She's older and has trouble navigating digital application systems, but honestly I don't know how hard she's trying. I do not want to delay listing the house any longer.

So, my questions:

• Should I go ahead and list with her living there? (background.. I'm going to list 'as-is' at a competitive price, so investors may very well be interested.)
• Do I personally help find her a place (I'm a realtor, so it's not too crazy of a thing for me to do)?
• Other options?

I really don't want to get into an eviction or negative situation. She's been a really easy, paying tenant, but it's time for her to go.

Steve Hall · Answer

@Sara C.

@Thomas S. is saying that you created the problem by attempting to force a GOOD paying tenant out. Your comment "I really don't want to get into an eviction or negative situation. She's been a really easy, paying tenant, but it's time for her to go" makes no sense to an investor. We don't push out good tenants... and we definitely don't evict them!

BTW, I think it shows a lot about you that you just publicly thanked 4 people in the post above this, but only the female got the up-vote. Bjorik, Thomas ,Theresa, and I all pointed out that the "smart move" is to sell it with the tenant in place, and not to evict a good tenant. I think you should up-vote all of the responses.

Theresa Harris · Answer

@Sara C.  I'm sure a lot of investors would be happy to have a stable, long term tenant.  List it now.  Tell her if she's open to showings with notice and keeps the place tidy, you might be lucky to find an investor who wants to buy the house.  If you are a realtor, perhaps you know someone looking for an investment property.  On the other hand if you sell it to a non-investor who wants it vacant then perhaps you can step in and help her find a new place.

Lynn McGeein · Answer

If it's "never been a good investment" for you, why would it be for the next investor?  If it doesn't work for an investor, I'd think it would be better to get her out and sell to owner-occupied, as even with as-is needing a lot of updating, owner-occupieds will generally pay more than an investor who will want to purchase at a level where they can flip it or make it an income producing property.

Sara C. · Answer

@Lynn M. yep good point. That was my original thought as well. Although I do think an investor would be able to do ok here. Here's some background info on the house on an old thread. This was our personal home at one point... I didn't buy it to intentionally invest at the time.

Anthony Wick · Answer

@Sara C.

I would simply give 30-60 days notice, or whatever lease or local laws allow, and tell her you’re selling the house and she needs to move. Where she moves to isn’t your problem. If she doesn’t leave, you proceed with eviction.

Steve Hall · Answer

@Sara C.

Raise her rent! $200 per month should do the trick.

Why the rush to get rid of her? Why is it "Time for her to go"? If you're selling the property, many investors want to buy a property with a tenant. She pays the rent? She doesn't make a lot of noise? She doesn't complain? Dream tenant!

There's no such thing as 7 months of notice... everytime you accept her rent payment you enter into another month to month agreement. To get rid of a tenant, you have give notice. Then on move out day you have to post a Trespass notice (WITHOUT accepting rent payment). Then if they don't leave, you need to file documents with the court.

Bjorik Mutize · Answer

I'd list it. But sit down with her and renegotiate some kind of agreement in the mean time whether it be month to month so you have a lease in writing. Just ethical to tee off the next buyer if they inherit her. Seems like right now you have tenancy at sufferance.

Good luck and keep us posted!

Sara C. · Answer

Thanks! @Bjorik Mutize good point about setting up the next buying for success!

@Steve Hall long story as to my "why" for selling it, but it's never been a good investment for me and I'd like to put my money elsewhere. Thanks for your input!

@Theresa Harris thank you! I think you're right... this seems to be the consensus.

@Thomas S. I don't see how I created a big problem. I'm open to ideas on how you would have handled it differently. Seems like selling it with her in place is a good option.

Account Closed · Answer

She is on a month to month, so you are good to go (assuming a 30 day non-renewal, and assuming she is neat and tidy for showings). An investor of course will be thrilled to collect rent on day one and have a MTM in place, and an owner occupant will ask you to evict her, which you will have time to do. They only bad scenario would be if someone wants to move in tomorrow, which is less common than any of the other scenarios.

I would probably just keep collecting rent, but make it crystal clear to her what is happening, what the possibilities are, and what she needs to prepare for!

How nice of you to help find her a place!!! I like that!

Sara C. · Answer

Appreciate everyone's input so much! I'll keep you updated!

Also, I realize now I was using the term "notice" too casually in this thread. She has been given 30 days officially.

Thanks all!

Tenant won't move out - what would you do?

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