Eviction at the last month?

Question

Hi, I am a new out of state investor. I have SFH that is managed by property management.

I bought it on May 31 with tenants(that are renting...)

I'll be glad to get your perspective on this topic.

My tenant's lease is ending on July 31. My PM told them we don't want them to continue (30 day in advance).

They are making excuses not to pay this month rent (with excuses.  One of them is that their need to pay another deposit to a new house).

In addition, they owed from last month late fees (75$) and another missing (100$).  The rent for July should be 900$.

Not sure if I should start an eviction process ( as far as my understanding it will cost 500$+120$), or just to let them go.

What would you do? What do you think I should consider?

Thank you very much for your help!

Hubert Kim · Answer

The eviction process starts with a Notice to Pay or Quit (different names in different places). This should not cost much to do properly. Mere notice may persuade the tenants to pay or vacate on time. I suggest starting with that and following up with filing an unlawful detainer if payment is not received. If your lease/city/state allows it, you may be able to deduct those fees from the security deposit.

Diane S. · Answer

first when you buy any property with a tenant in place make sure you get the security deposit they gave previous landlord, they will be wanting it back, if they can not get anything back will have no reason not to trash place or cause you more expenses, that being said offer immediate refund if a walk through at a certain date empty. pictures, check off list, some fees will be disputable if not in original lease, well worth writing off, some state require you to keep existing tenants unless owner occupied. If you are going to rent out anyway offer them new lease what is reason for evicting, dont take PM word on everything checks laws in state, if they draw out or play hard ball you could lose more than the fees owed now. Some leases have an auto renew clause, you may have to honor their original till you get them to sign new or give you official notice that vacating, just get them to put that in writing, what state is it in?

Hubert Kim · Answer

An Unlawful Detainer action is what is more commonly referred to an the eviction process. It is a special court filing for a landlord to regain possession of a rental unit from a tenant. You are probably already familiar with it since it seems you have a couple numbers indicating estimated filing fees. It is usually not fun.

Nancy P. · Answer

Based on other posts these tenants have given you trouble from the first moment you closed on the place.  Evict.  They are seeing what they can get away with and I will bet you $100 they will not move out on time unless you move forward.

Idan Narotzki · Answer

Thank you Diane, sounds like a good tip. The property is in Missouri state. I Liked the refund Idea. How much would you refund from 700$ deposit (that they will probably owe all due rent)?

Jennifer T. · Answer

In exactly the same boat as yourself, but I expected it.  Closed on two duplexes June 24th...3 out of 4 units had month-to-month tenants paying substantially below market (4th was vacant, thank goodness).  Posted 30-Day Notice to Vacates on June 25th (I actually gave them until July 31st), along with an intro letter on how/who to pay July's rent to and that they cannot use their security deposit for last month's rent.

There were grumblings from two of the units along the lines of "oh, bummer, I wish I hadn't just paid rent."  As in, June's rent.  Ummm, yeeeaahhh.  Rent was due on July 1st for two of the units.  Posted 5-Day Pay or Quit notices today.  And will file for an eviction(s) on July 12th if the rent has not been paid and they are still living there.

I already had the third one call me last week about the 30-Day.  So upset because she thought she would have more time than that.  It's going to cost $1K-$2K to move to a new place and it's going to take her time to save that money.  I nicely explained that I am only required to give 30-Days Notice, per Orleans Parish (county) laws and I've even included an extra week, just to bring it to the end of a month and rental period.  I gave her some mutually beneficial ideas, like buying her used appliances, if that will help out.  The previous owner didn't supply appliances, but I will.  I also offered that, as long as she pays July rent in full, I will refund any pro-rated unused portion on her move-out day if she moves out before July 31st.

But what I really wanted to say?  "Your failure to plan does not constitute an emergency and loss of income for me."  Plus, she's known since at least March that these properties were for sale and she'd be facing either a substantial hike to her rent or a Notice to Vacate for whomever bought them.  Sooooo...why hasn't she already saved some money?  And how would more time be any different than that?  Right.  It wouldn't.

At any rate, that's my long story to say DEFINITELY start the eviction proceedings.  Right now, you're totally assuming they'll be out by July 31st, just because their lease was terminated.  But, just like tenants sometimes ignore paying the rent when they're supposed to.  They'll sometimes ignore Notices to Vacate/Lease Terms. also.  Had that happen to me last year and I had to take her to eviction court, once the 30 days was up.

In addition, when a tenant knows they're not getting their security deposit back, you are almost guaranteed to be given back and filthy and disgusting unit, including the appliances.  And if that's all that's wrong, consider it a major win.  It's free to clean but, with no incentive, people need to possess personal responsibility and character.  Not usually qualities you find in people who don't pay their rent.

Idan Narotzki · Answer

Thank you very much, Kim,

May you say a few words about 'unlawful detainer'? Not sure I understood the meaning of it.

David Stumpf · Answer

Absolutely. Start the eviction process now.  The last thing you need is for them not to leave at the end of month and they are 2+ months behind on rent and you have yet to start.  Give them notice that you are starting the eviction per your local requirements and get on it. They will keep making excuses if you don't until eventually they move out(hopeful) and let you know that you can keep the security deposit for last month's rent, which leaves you nothing to cover any damages or their already late rent.

Amy Beth · Answer

@Idan Narotzki. I would probably file for eviction only to be sure that they actually leave.  My concern would be that they can’t come up with a security deposit and first months rent for another rental this month and stay past a month in your unit.  The fact that there late last month shows that they have money problems so they probably can’t afford the moving costs right away. Then you will lose another month’s rent.

Eviction at the last month?

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