What would you do in this situation ?

Question

I wanted to know what would you do in this case. I have a rental SFR in WV that was primary residence before moving to WA state. Tenants lease expires on April 30, 2020. I had talked to tenants 6 months ago and let them know that lease will not be renewed and also sent them non renewal letter by certified mail 45 days before their lease expired. This tenant has been late paying rent for last 3+ yrs every month but I do get the payment. I even reached out to tenants and asked if I could help them in anyway finding their next home, also told them my realtor has few units for rent. When my realtor reached out to them she was told they need something bigger than what she has.

I don’t know if I’m just assuming this but I’m afraid they will be a trouble moving out. And also given the current lockdown situation it creates another issue. My plan is to renovate this rental and put it on market for sale. There is no doubt that I would like to sell and get some cash for next project. Not sure how’s the market going to be in next few months when I put it for sale. One thing, it’s in a good location. Just not sure if I will get what I had expected few months back. What would you do or how would you tackle these issues of getting tenant out and sale. Thank you for your feedback.

Marc Winter · Answer

It's very difficult to un-train a tenant.

You've trained them to pay late and basically ignore you.  Now would be a great time to take that lesson to heart, and open up a dialogue with the tenants.  CV19 has everyone by the short hairs, but it is not impossible to communicate.  It's actually become simpler and easier.

Try a face-time call with them.  If they won't even communicate with you, that's a real problem.

Most states will not allow evictions during the pandemic.  While you may be able to post an NTQ,  nothing will happen in eviction court until the Gov says so.

Be well, good luck.

Manmath D. · Answer

Yes I'm. It's not cash flowing property (Was primary residence) and I was planing to sell this summer anyway. Market is bad right now but may get worse next year, who knows.

Manmath D. · Answer

Thanks, but it is not a major rehab. Just some cosmetic stuff, paint and deck for now.

Manmath D. · Answer

I'm more worried about the market now since I've to sell this property (that was the plan anyway) and move on for better opportunities.

Manmath D. · Answer

Aaron tenants moving out was my biggest concern few days ago but now I'm more worried about the market and my plan to sell that property. I've reached out to my realtor and asked her to see how things are and her response was not encouraging.

I really had planned months ago to sell this property in summer 2020 anyway. It’s another story that I’m not even cash flowing on the property (was primary residence). Hence getting rid of it.  Here is what I’m thinking, If I can sell it now and at least get what I bought it for 6 years ago is better than If I wait and loose more in the near future. Don’t know if market will pick up and when. More likely scare will subside for a while during summer. I have a feeling that it will get worse over time and will take few years or more to get back up. It will be a lesser loss this summer than waiting and selling a year later.

Joyce Williams · Answer

@Manmath D....... If they plan on staying and taking advantage of the eviction moratorium then you will be stuck until this is over. If they leave, I would still renovate and try to sell. If you don’t like the prices being offered wait until the market changes but that could take a while.

Joe Villeneuve · Answer

Try this.  Call the building dept to get a rental inspection.  You said you were planning on doing rehab, so when they find it, they can redflag the property, and...

Nathan Gesner · Answer

Why worry about something that is still a month away? There's nothing wrong with preparing for worst-case, but most tenants will do the right thing. You've given notice so just see what they do. Don't harass them about it.

It's not the best time to put a house on the market, anyway. If they fail to leave, I would let them rent month-to-month until the COVID scare clears up and then give them notice to vacate or start the eviction process.

Anthony Wick · Answer

I'm not sure there is anything for you to do right now. You've given them notice to be out April 30. If they do not move out, you then have to solve that problem. I would accept full rent on May 1 if they are not out, which would give them another month of tenancy. Heck, I would do this until they are either out or you can file for eviction. What other choice do you have? Cash for keys? I hate cash for keys. Rewarding people for violating terms of lease.

Charles Carillo · Answer

@Manmath D.

Are you still planning on renovating and selling it with the current situation? I would reach out and see what their plan is. If you are pausing and they want to stay, tell them you will switch them to month to month. Personally, I would keep any tenants that can pay during COVID; even if the rent is late. Late rent doesn't bother me; if they pay a late fee.

What would you do in this situation ?

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