Continuous Inherited Tenant Issues

[Justin Mayne]

Hello Everyone! This is going to be a long post because I want to give all the details. I appreciate any advice you are able to give.

I bought a three unit property in Oklahoma City and inherited a difficult tenant. The tenant rented out the main house and the above garage apartment. When I bought the property with a VA loan, the tenant had to move out of the main house sii OK I could live there. The previous owner gave her $5000 to break the lease so she would move out of the main house. In the same agreement, he also assured her that her lease of the above garage apartment would remain "unaffected." In the state of Oklahoma, the lease transfers over to the new owner.

The tenant previously only rented out the main house at a rate of $975 a month with a separate lease that was superseded by by the current lease. Later the apartment was added to create the current lease. The current Lease has a rental rate of $1400 per month which includes both units. 

Now that I have ownership of the property and she has moved out of the main house, she believes that her rent is $425 a month and that she is not required to sign a new lease. Her reasoning is that the house by itself was $975 in the first lease. By subtracting the $975 from the current price of $1400, you are left with $425.

While that reasoning makes sense, the rate of $425 is not in any written document the previous owner held with her.

I have tried to offer her a new lease with the terms she wants and she refuses to sign based on her attorneys advice.

I have been emailing her attorney and her last response was 12 days ago. The last email from her said that she understands that the price on the lease is $1400 and the lowered price is not in any written document. I tried to call her attorney to speak about the matter and she is impossible to reach.

I understand that the lease legally transfers over and she technically isn’t required to sign a new one. However, she’s wanting to pay a price that is not agreed upon in any written document.

Does the 1st lease she had actually hold any significance in this situation?

Should she be required to pay the $1400,as the lease states, if she is unwilling to sign a new lease with a price specific to the apartment only?

Am I wrong to think a new lease should be signed due to the current lease not being specific to the apartment only?

Thank you for reading and thank you for any advice or suggestions you can provide!

[Jon Kelly]

@Justin Mayne tough situation. So she has a lease for both units at $1,400, then signed an agreement relinquishing access to the main house? Sounds like there was never an agreed upon price for the unit above the garage. It would be tough to argue that she should pay $1,400... I would likely either (1) agree on a price somewhere between $425 and average rent for the unit ($600-700), maybe $525?, or (2) accept the $425 and raise the rent or find a new tenant when the lease is up. You're fighting for an extra $125/mo, which is $2,250 over 18 months. It's not a huge amount in the grand scheme, and you may end up spending more than $2,250 if she damages the unit or stops paying rent altogether... I hope you're able to make money from the 3rd unit! Good luck!