Inherited tenant leaves one month in, advice?

Question

Bought a quadplex in c class area last month. One of the tenant who have been there for 5 months did not pay rent and is in the process of eviction I talked to my PM. I am house hacking the place so I went to talk to her. The reason they decided to leave the place has poor parking and maintenance from old owner was bad. They always paid rent on time from rent rolls I saw and there going to an apartment for 1k a month. They have the income. I'm worried about them leaving due to a potential huge rehab. To pull carpet, paint, etc. I am trying to convince them to stay.

if they leave I'm left with a unit that requires huge rehab, vancany in October, and etc.

The area is not good, this place has old mechanical parts, the road is bad. I'm stressed over this and thinking about selling. I don't know any advice.

I already have 1 vacant unit, which hopefully is filled soon. We lowered the price.

if they leave I'm left with a unit that requires huge rehab, vancany in October, and etc.

The area is not good, this place has old mechanical parts, the road is bad. I'm stressed over this and thinking about selling. I don't know any advice.

I already have 1 vacant unit, which hopefully is filled soon. We lowered the price.

Andrew B. · Answer

If one vacant unit is freaking you out this much, you probably are not cut out to be a landlord and should sell. You also talk about your location as though it’s a terrible place to live. With that attitude it’ll be hard to rerent.

If you wanna be a landlord, buckle down, clean up the unit, and rerent it. In C class property you don’t have to install granite countertops, just fix anything that is not functional and clean anything that is.

Also, if they have not paid rent for the month yet, start the eviction process.

Theresa Harris · Answer

I am assuming you are talking about two different tenants "One of the tenant who have been there for 5 months did not pay rent and is in the process of eviction I talked to my PM. I am house hacking the place so I went to talk to her. The reason they decided to leave the place has poor parking and maintenance from old owner was bad. They always paid rent on time from rent rolls I saw and there going to an apartment for 1k a month."

If you have two units that will be empty, are the other two rented or is a third vacant as you will be moving into that unit?  From the empty units, pick the one in the worst shape and live in that one.  For the other two, a fresh coat of paint and cleaning the carpets can do wonders.  Invite some friends over for a painting weekend and get as much done by yourself as possible.

Is this your first rental property?

Russ B. · Answer

Who cares why they're leaving, if they're forcing you to evict them? The sooner they're out, the better. If they have a solid income, that's a plus - it means you have a better chance of eventually recovering the money they owe you.

Carpet and paint aren't that big a deal unless the unit is enormous. If it's an older building, I would look under the carpet - there may very be hardwood floors that are still nice, or can be cleaned up.

C rentals don't have to be fancy.. they just need to be clean and fresh looking.

Also, if you're doing a house hack, why are you using a PM?

Aaron Montague · Answer

@Robert Hernandez -

1. Chill

2. Make a list.  This list should include everything broken and everything that can help spruce up the place.  You can't always do a ton for the neighborhood but you can be the diamond in the rough.

3. Actually accomplish the things on your list.  Owning rentals can be hard and annoying.  Start doing.

4. Figure out your marketing plan. Craigslist isn't the only way to peddle your vacant apartments.

5. Make sure your tenant screening process is well thought out.  C class neighborhoods are going to attract a specific type of tenant.  Make sure you know who these people are and how to spot trouble BEFORE it becomes your permanent problem.  In the same vein get your eviction process down pat.  Hire a Lawyer to walk you through the process in your city/town if you have to.

6. Breath

Jennifer T. · Answer

I apologize for being a bit harsh when you are already feeling stressed, but you need to change this attitude that she is a "good person".  She isn't.  You don't even know her.  And, what you do know, is that she is a deadbeat who isn't paying you her rent.  The PM company is literally having to evict her.  That is not a good person or a good tenant.  It doesn't matter why she is unhappy.  An upstanding person would give you a 30-Day notice and pay their rent for their last month.  Because they're living there.  They're "eating the steak", so they need to pay for it.

If you heed my words, you will save yourself a lot of grief.  Grow a thicker skin and treat your business, like a business.  There are a lot of tenants out there who will bombard you with excuses as to why they can't pay rent on time or at all.  At best, it's them putting rent above other bills because you allow it.  At worst, it's lies.  However, it sounds like you've made a good choice in using a PM company.  Let them handle the tenants.

I don't even understand why you're actually trying to talk her out of leaving!  She's not paying you rent anyway!  It's a gift if she just leaves and hopefully doesn't cause you the further expense of taking her to eviction court, while she languishes in your unit living rent-free.

Since funds are limited for you, do the best you can with what you have to work with.  Get the vacant units clean and habitable as best you can.  You may not be able to get typical market rent in their current condition but, when the price is right, people will still rent them.  Get some cash flow going for now.  Save money.  And spruce the units up down the road.

Matthew Paul · Answer

@Robert Hernandez Running a business isnt always positive cash flow . You have to spend money to make money . You have a property in a class C area . Try and make yours the best property around .  Yes this is the beginning of the slow time to rent , so you might as well take the time to have the places looking as best you can .  They will rent eventually rent .

Theresa Harris · Answer

The person being evicted is separate from the ones who are moving.  They mentioned it in another post as I thought the same as you at first.

Robert Hernandez · Answer

@Theresa Harris

Unit 1 is currently occupied and is rented out. He has paid rent if he leaves I'm very scared. Incentives may be a good idea.

I knew when I bought the place I would have to do work. I was just surpise that they are leaving since they were long term and good tenants from what I have seen and heard in the past. I met her face to face and she is a good person. It's just unfortunate.

Theresa Harris · Answer

So with the tenants in unit 1 moving out, the entire place would be empty or rather not bringing in any money.  To get them filled, you could do an incentive (one months' free rent at the end of a 1 year lease).  Careful with the wording as you want it at the end of the lease, if they leave early, they are out of luck.

The time it takes to fill a vacancy very much depends on the location. Some areas, it is always easy; others will be slower in the winter especially December and January.

For the people in unit 1, why not offer them a free months rent at the END of their lease.

Cleaning carpets is easy.  You can get a professional company to do it.  Used to be you could rent a unit from grocery stores, at least you could where I am.  Not sure if they still do that.  My mom had a rental and the carpet looked horrible and she thought she'd have to replace it.  She tried cleaning it and it looked as good as new once she was done.

Why was it unexpected that you'd need to do work in the unit you are moving into?  It should have been apparent when you viewed it or when it was inspected.

Inherited tenant leaves one month in, advice?

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