Inherited Tenant Nightmare

Inherited Tenant Nightmare

Investor · Memphis, TN · Member since 2019 · 4 posts · 1 vote

Hi all, 

I recently purchased a duplex in Memphis, TN that was occupied. This duplex is in a good neighborhood near Rhodes college. Rents are below market due to long term tenants being in place, and both leases expire in April of 2020. Before purchasing the property I had reviewed the rent rolls and was aware of the fact that this tenant had paid late a few months, but it was nothing that was out of the ordinary. Rent would come in on the 12th or 14th sometimes with a late fee. Not to my surprise, since the purchase of the duplex the tenant has been paying late. 

The issue, however, is not the fact that the tenant pays late. The tenant continually files maintenance requests on Buildium and has refused to take phone calls to schedule a time for repair for requests that could potentially lead to larger issues on the property. I won't hear from the tenant until there is another issue. 

Here's January 2020 for example (read until the end, it only escalates): 

Friday 1/10/2020: Tenant files a maintenance request stating that the security door is broken. I call her twice, no response. 

Thursday 1/9/2020: Tenant calls stating that there is a hole in the HVAC duct. I call/text asking for a time that I can come by over the weekend to fix the issue, no response. 

Tuesday 1/21/2020: Tenant calls at 9PM saying the upstairs toilet is backed up and not flushing. She creates a task on Buildium, and I let her know that I will have a plumber call her the next day to schedule a time to come fix the issue. 

Wednesday 1/22/2020: Tenant creates an additional task on Buildium that the ceiling is leaking below the bathroom. I call the plumber and let them know. At this point, the tenant doesn't answer either of our phone calls for 2 days. The whole time, there is an active leak on the property. 

Friday 1/24/2010: Tenant calls at 2:21AM (leaving a lengthy voicemail) stating that there has been a domestic physical altercation, there are police at the property and the back double sliding door needs to be boarded up and replaced because it was ruined. She mentioned that she needed someone to come immediately during the night to board up the door while she headed to the police station. 

I'd like some feedback on these two dilemmas: 

What is the best protocol for a tenant that creates maintenance requests but then won't correspond for a time to fix the issue? (Assuming the issue could turn problematic, like a leak from an overflowing toilet upstairs)

How would you deal with a tenant (inherited) who pays late but will request minor maintenance requests, or ones that aren't typically the landlord's responsibility? (Nothing specifically stated about these types of requests in the current lease)

Thanks in advance!

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Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
6y

In Ohio, and many other places check your state/jurisdiction, a landlord only needs to give 24 hour "notice" that you are entering--- no tenant permission is required. For emergencies, here, no notice is required. In any event, we tell tenants in our documentation that a maintenance request, is interpreted  as permission to enter for the repair at our convenience. We also tell them if we use outside vendors, such as plumbing and hvac contractors, they are responsible for making an appointment for the repair. We do, as a courtesy, for in-house repairs text the tenant the 1-2 hour repair time window 24 hours in advance so the tenant can make arrangements to be home if they desire to be. Make being there his problem, not your problem. You just go, knock, and enter with your master key if no answer , at YOUR convenience

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  • Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    6y

    You are legally obligated to follow the lease currently in effect.  I would go over it with a fine-toothed comb so you know it better than he does so your ignorance cannot be used against you.   What does the lease say about maintenance requests and landlord's right to enter?  There is a reasonable good chance there are some "holes" in the current lease that will make this hard to solve without your own lease.

    If I were in your position (and I have been several times), I would absolutely issue him a legal notice of termination at the appropriate time (as stated in the lease and/or local jurisdiction).  Plan for him to play games and try and delay leaving and string you along.  Do not buy in.  This is your property and you are making a business decision.  If he is not out by the lease end date, immediately file for holdover eviction.  I would strongly advise hiring an attorney the first time around.  Seemingly minor procedural mistakes get the case thrown out and you have to begin again.

    In the short term, send him a letter and let him know there is a "new sheriff in town" and you will be enforcing the lease that is in place - including late fees, etc. - without exception.  If the lease is silent on repairs, send her the new policy that you will be following regarding repair calls. (Hint: you don't ASK them when you can come address the repairs - you INFORM them when you will be coming, given proper notice.)

    I hate to paint people with a broad brush, but inherited tenants almost never work out.  This guy sounds like a PITA and will just be a time/energy sink for you and could sour you on this business before you really get started.  

    Go find, screen, and place your own tenants.  April is closer than you think!

  • Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    6y

    In Ohio, and many other places check your state/jurisdiction, a landlord only needs to give 24 hour "notice" that you are entering--- no tenant permission is required. For emergencies, here, no notice is required. In any event, we tell tenants in our documentation that a maintenance request, is interpreted  as permission to enter for the repair at our convenience. We also tell them if we use outside vendors, such as plumbing and hvac contractors, they are responsible for making an appointment for the repair. We do, as a courtesy, for in-house repairs text the tenant the 1-2 hour repair time window 24 hours in advance so the tenant can make arrangements to be home if they desire to be. Make being there his problem, not your problem. You just go, knock, and enter with your master key if no answer , at YOUR convenience

  • Member since 2019 · 215 posts · 122 votes
    6y

    I've never had any luck with inherited tenants.  Sounds like you have two options.  1. Get the tenant out and put someone in there you selected. 2. Convey that their is a new sheriff in town and you have different expectations on how this relationship will working going forward.  I would start by reading their lease thoroughly to determine what is your responsibility to maintain and how/if it outlines how you can charge the tenant for damage to the property or negligence.  

    Did you do a full home inspection prior to the purchase?  Just want to make sure you didn't get caught in a property with deferred maintenance issues.  I would make sure the seller held up their end of the bargain and fully disclosed all issues and correct rent rolls.  If anything seems suspect you might want to speak with your agent about possible recourse.

    Regarding communication and coordinating work my tenants are all responsible for accommodating work requests and being present to let in vendors.  If they are a no show I will charge them for the vendors time.  If it continues to happen I will show up to place a lockbox on the door to allow the vendor access and charge them for my time.  Obviously make sure they are still given 24 hr notice.  Finally if this is a continuous issue I would consider this the tenants failure to maintain the property or violation of the lease agreement, if it is justified, and serve them notice to vacate. 

    If the tenant stays it sounds like you need to retrain the tenant the correct way so they understand the exceptions if they are to continue to live here.  Clearly define what regular maintenance is that would be covered by the landlord and what is a tenant charge.  Since they are a problem tenant I would start posting a notice the day the lease allows you too.  Sometimes showing you mean business and a few fines will bring them back in line.

  • Property Manager · Ketchum, ID · Member since 2016 · 277 posts · 132 votes
    6y

    It sounds like the tenant has breached the lease agreement by sending requests for service and not responding to any effort on your part to get them fixed.  There is at least on issue that needs to be addressed immediately and that is the backed up toilet and the ceiling leak under that bathroom.  I would use your software to send a notice of intent to enter.  I would also send a 30 day notice to vacate.  On this, you will need to read your landlord tenant laws for the state in which the property is located.  Whereas April is not far away, the damage that this tenant can do in that period of time could be horrible.  I would also check police records to find out what happened when they were called for a domestic violence issue.  Find out in that police report who broke the door. If it was the tenant, you have more grounds to remove them.

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    6y

    @Reed Rickenbach. You say it’s in a good area of Memphjs but what are the market rents and what’s the current rent? I always thought most duplexes in memphis were tough due to the area they are usually in and the type of tenants you get.

    In this case, 1) I wouldn’t repair stuff that doesn’t affect safety or the property. Some of the stuff you mentioned doesn’t sound like either of those. 2) id file for eviction as soon as rent is late. If rent is paid on the 14th by then usually, you can file sooner.

    If you do this, and don’t accept late rent payment, the tenant may leave or make things worse. Really a toss up on that one.

  • South Holland, IL · Member since 2017 · 376 posts · 432 votes
    6y

    @Reed Rickenbach

    If you care about the maintenance of your property, YOU will schedule with the contractor to perform the repairs. The tenant need not be present. In most jurisdictions 24 hour notice is all that’s needed. You can’t blame a tenant for not caring about maintenance. It YOUR primary responsibility. I would also give the tenant 60 days notice in February of non-renewal of lease agreement.

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    Just tell the tenant when the service person is coming (24 hour notice minimum) and provide access with your copy of the key. If they are not cooperating with scheduling, don't involve them with scheduling.

  • Rental Property Investor · MI · Member since 2019 · 192 posts · 205 votes
    6y

    @Reed Rickenbach

    Don’t sit on these issues. I’m really concerned about the leaks. I would tell the tenant what time I would be there and just go. If they want to be there, it’s their option. Take good before and after pictures /video of everything damaged and document, document. Send them a nice letter 60/90 days notice that you will not be renewing the lease and wish them well.

  • Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    6y

    And on your next lease, use one of @Nathan Gesner's gems:

    "We are not obligated to make repairs if you are delinquent in rent payments unless an emergency situation exists."

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    You are allowing a bad tenant to play you like a fiddle. It's unlikely you will turn them into a good tenant so it's time to figure out how to cut your losses.

    "Dear Tenant,

    This notice is to inform you that your lease is due to expire on April 1st 2020. I will not be renewing your lease and expect you to vacate no later than March 31st 2020. If you are able to secure a new rental earlier than that, I will allow you to terminate your lease early, without penalty, as long as you provide me a minimum of 15 days notice in writing of your intended termination date. You will remain responsible for rent, utilities, and other terms of the lease during that 15 day period.

    I have received your maintenance requests but you have failed to respond to my many attempts at scheduling repairs. Because you refuse to respond or cooperate, I am placing your maintenance requests on hold and will complete them after you have moved out.

    Your Landlord"

    that's it. Keep it short in professional but let her know you are not playing her games and you are not allowing her to stay. Get rid of her, fix up the rental, and place a good tenant at a good market rate.

    The DIY Landlord Book4.7247 Reviews
  • Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    Stop calling repeatedly. Call and leave one voicemail saying I will be there at xx time on xx day with a contractor to fix the problem. Post notice on his door as well and take a photo. All this is done at least 24 hours in advance. Then when you get there go in and fix the problem. He does not need to be home and you do not need to coordinate with him.

    Also, start posting notice to evict the day rent is late and follow through. Add all filing fees to his balance that must be paid in order to cancel the process.

  • Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    Some states require 48 hours notice. Check your local laws before proceeding.

  • Durham, NC · Member since 2013 · 502 posts · 215 votes
    6y

    @Account Closed

    Your tenant has started a power struggle. Not unusual when the landlord changes. It is imperative that you use your power that is rested in the lease agreement you took over from the previous owner. Enforce it but stay inside the bounds of the tenant/landlord statutes of your state, which you probably can read online. I would stay away from actions that a judge could deem retaliatory in a court hearing. Don't tell the tenant now that you won't renew the lease. And document every conversation you have in that matter. Should you end up having to evict the tenant, you need a solid case and good documentation. It is not easy to evict a tenant if it is for other reasons than non payment of rent. It could also be that the tenant is looking for an opening to take you to court at some point. Hence, document, document, document. And yes, I wouldn't renew the lease either, but wait with the notification until the deadline is close that is set by your lease or state statutes.

  • Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    6y

    I’m usually the first person to chime in and call the tenant an idiot that needs evicted but it sounds like some of this Atleast is legitimately concerning . Leaks are not to be taken lightly and need addressed immediately. Water is absolutely destructive to a house if untreated . Your management style sucks why are calling in all these people ? Just go over and look at the place instead of trying to automate everything . Using buildum is going to make you brokem if you don’t actually manage your building right

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    6y

    The best protocol for the two earliest request if you receive no response you just serve notice you will enter at x date and time to fix. 

    On her two later requests I would use the emergency entry provisions in the lease and in your state landlord tenant act and fix them ASAP. For the toilet make sure she has tried to use a plunger before sending the plumber.  By fix for the sliding door I mean board it up. If you have a broken sliding glass door in January, here I would need to get it closed up immediately.  The fix is to protect your property. Then I would send Nathans letter and don't forget to bill her at minimum for the door. 

  • Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    @Reed Rickenbach

    I would send non-renewal and get rid of this tenant

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