End of the lease for tenant, second smartest thing to do?

Question

I am sure I am going to get a lecture about being "soft-hearted" and not firm enough with my tenants, but hear me out. As I am typing this narrative out, I've realized there's a lot, so here is everything in sequential bullet points:

*Bought a property and inherited tenants

*Tenant's lease is ending, September 1st being the last day

*Appropriate nonrenewal notifications were sent to her via email and text on August 2nd

*She knew I didn't have plans of renewing based on our face to face conversations

*She hasn't paid August's rent yet

*I called about August's rent, she said she "need to save the money to apply towards the next place, since local rent has increased"

*I explained she still owes rent, and her security deposit can't be used as rent

*She gives me a sob story (3 kids, new school year, low paying job [all true]), wants to sign on for another year

*I cave and suggest to her a different option: best I can offer is m2m, but will have to sign a new lease(I was thinking with stricter language, possible rent increase)

*She is concerned with how long the m2m would extend for, to which I have no answer

I know there are red flags, but I am only considering the m2m because:

1. I am currently TDY (military) and won't be back till mid September

2. She has paid all her rent up to this point, so I know I will get the money

3. The cost of eviction is too much and takes too long considering I will get paid the rent

4. My plan is to install carpet and a washer/dryer in the unit after she leaves. I can't start the reno until I come back in September, so the unit would sit empty for a month or so

5. She hasn't really caused any issues leading up to this point, so I am not so quick to kick her out

As far as I am concerned, I feel like I have the upper hand because I am lenient on the lease, but not to the point where it is hurting my business. Obviously the smartest thing here is to show her the curb, but what's the next best thing I can do? If she leaves by September, I won't be around to make she leaves quietly. Also, I can't start the renovation process and finding new tenants, which will cut into my bottom line.

tl;dr: inherited tenant can't move out due to some finance issues, but pays rent. besides kicking her out, how can I help her and help myself?

Bryan Devitt · Answer

@Robert Lei you're essentially kicking the can down the road a couple months until you get back, I don't see a problem with it. It isn't ideal but neither is not being there. You can't do anything except hire a lawyer from where you are, so I think this might be your best option financially IMO. Eviction will cost more while you're not there and then it will be vacant longer to top it off. Give her the M2M and tell her if she doesn't pay rent immediately then you'll start the eviction paperwork. If she pays then go with the plan and if she doesn't then you're just a week behind where you are now

John Warren · Answer

@Robert Lei you are making a mistake my friend. Stick to your guns and move her out. A vacant unit is much less expensive than a bad tenant, and although she may seem like a decent person, these types of tenants don't think about unpaid rent in the same way you will. This tenant will eventually leave without paying a month or two of rent, and will most likely leave the place filthy. In addition, do not be surprised if a broken television, nasty old couch and a box spring or mattress are left behind (ask me how I know).

James Baker · Answer

Cash for keys.

Jill F. · Answer

@Robert Lei How much is her rent? If she pays august IMMEDIATELY, is willing to pony up a little extra each month to cover last month's rent, and signs a new m2m lease, I'd let her stay until you get ready to reno. You're certainly going to lose money if you evict. Make sure she understands the consequences of an eviction filing.

Richard Gray · Answer

@Robert Lei

You might want to decide if you are a Landlord or a social worker. You may also establish some firm rules and procedures in your rental agreement for clear understandings by all as to what will happen if rent is not collected on time and so every tenant is treated the same. Rent not being paid or being late is not a negotiable issue. The tenant either performs or the leave, and what ever the land lords situation does not change anything. Tenants come and go and maybe the next one will be better. I personally will not negotiate and item on my rental agreement after the tenant has agreed and signed. Good luck, Rick

Amy Beth · Answer

@Robert Lei. I would hire a lawyer to get her out since you can’t be there to do it.  And unless you are staying put on September, you need a property manager to manage your property and take care of these situations for you.

Theresa Harris · Answer

@Robert Lei  That makes sense and I'll guess she doesn't want to pay the extra $150 a month either to get her up to market value.

Robert Lei · Answer

The thing is that she isn't paying market value; I believe she is underpaying by $150ish. The previous owner told me the unit's renovation took longer than expected. When he was done with the reno, he was desperate to fill it and went with the first option aka this one. Based on my conversation with the tenant, she hasn't been able to find a comparable unit at the same price that wasn't in a bad neighborhood. I didn't want to renew in the first place because I can add a little more to the unit and command a higher rent.

@Mike Franco I will actually need to use some of her deposit for repairs though, since I know she is a smoker. As far as I understand, damages from smoking doesn't fall under the "normal wear and tear." I was planning on refunding her deposit as fast as I can to help her out, but I didn't expect to be TDY for so long. Hence the 1 month extension.

Mike Franco · Answer

so she's living paycheck to paycheck.

I have used security deposit refund as leverage . i.e if tenant moves out and leaves everything spotless, I will refund security deposit on the spot. That way she will have immediate funds to apply to her next rental.

Theresa Harris · Answer

@Robert Lei  Why did you want her to move?  You inherited her lease when you bought the house and up until that point, she'd been paying the rent on time.  If she's paying market value and takes care of the house, why would you want to find another tenant?

I can see how a single parent with 3 kids who is renting might not have a lot saved up to put down on a new rental.  If it was me and she paid her rent, took care of the place; I'd keep her.

End of the lease for tenant, second smartest thing to do?

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