Ways to cancel yearly lease?

[Todd Groom]

We recently acquired a dozen or so multi-family properties. The previous owners gave one tenant reduced rent in exchange for him doing small jobs and being on call for maintenance. Once they sold the property he got mad and has decided he doesn’t want to honor the agreement. Normally this wouldn’t be an issue we would just fire him and raise his rent. However the issue is they did not document anything and signed a yearly lease. So the agreement is verbal but the lease is written.

I have tried to work with the tenant and explain we don’t have anything to do with his past agreement but will honor it. He’s not happy and is now out of town all the time “working”. His way of avoiding any task we need done. I’ve given up even trying to make his agreement work. Market rent is $1000-$1200 for his unit and he’s paying $800. He was also promised 2 full size garages under his unit for free. Luckily there’s no written agreement so we aren’t giving in to that one.

Does anyone know any back doors to canceling a lease legally? I may have one out but would like to run it by anyone experienced with this situation. I’ve noticed he has a girlfriend with kids who are always there. They are not on the lease and he doesn’t have anyone on it. Would this be grounds to terminate his lease if she lives there? Do I have to give him the opportunity to fix the problem? We are also paying for trash, water and sewage. So more people in his unit is a higher bill. He’s under a lease until the end of November.

Other option just leave it as is take the hit and refuse to renew.

Any help would be appreciated.