Difficult tenant - what should I do?

Question

Hi BP --

We recently acquired a duplex. We've already sent a 30-day vacate notice to one tenant as she is month-to-month and paying well below market value.

We are now planning to show the property to interested renters to move in after these 30 days. The current tenant has been unresponsive about a time/day that is convenient for her to allow showings.

In her lease agreement I only legally have to give her a 24-hour notice. If she doesn't respond, would you just show up, open the doors and start showing the place?

Matt M. · Answer

@Keegan Darby

I’m with @Bjorn Ahlblad

I don’t show a property until it’s vacant and ready to go.

And I would most definitely not put a tenant at risk with what’s going on with Covid by bringing strangers in their home.

Covid or no covid, I still won’t bring strangers into one of my occupied properties.

Ethan Jacobsen · Answer

Personally, I would advise against it. Pushing your way into the unit could cause issues with the tenant. Here in CA, I think the 24 notice of entry should really only be used when needed. The tenant has the right to quiet enjoyment and if she can make the case that you are disturbing that, she could cause problems. We have a few owners who have requested to do monthly inspections of their property, but we've told them that's a bit excessive. In theory though, your lease probably states that you can give 24 hour notice even for showings, so you could give it a shot. But you'll want to check to see if it says showings for buyers of the property. Showings for renters might be different.

If I were you, I would start scheduling all the showings for the day after she is scheduled to move out and then just get everyone in all at once (with social distancing, masks, sanitizer, etc.).

If I were you, I would start scheduling all the showings for the day after she is scheduled to move out and then just get everyone in all at once (with social distancing, masks, sanitizer, etc.).

Adam Martin · Answer

That is a pretty aggressive timeline.  I usually anticipate at least a couple weeks and don’t show until the unit is empty.  I can assure you if she doesn’t want you to show even if you get in it won’t show well.  What motivation does she have to ensure it is picked up and in good order.  She is most likely not happy you bought the place and are telling her she needs to go live somewhere more expensive than she most likely had it.  I would try to keep things professional and courteous so she hopefully leaves the place in good shape and in time.  If she doesn’t and you have tenants ready to move in you may find yourself in hot water.

Joyce Tavares · Answer

I would pre-approve new tenant and let them know the situation.  You can show them pictures of the unit prior to it being rented and give them the option of putting down a hold deposit, which goes 100% towards the security deposit once the rental agreement is signed.  I am sure new tenant wants to lock this down, as do you, so if they should change their mind, you can use the hold deposit as a re-listing fee and not refundable.  Make them very aware of this.  Most of my tenants rent ahead of time, often site unseen.  They drive by the unit and I show them lots of pictures and a video walkthru.  I have never had a complaint.  As soon as it's cleaned and the flooring and paint is done, then I let them see it in person.  They can walk thru with you outside.   The last tenant I rented to I did a Facetime walkthru and it worked great.

Ethan Jacobsen · Answer

@Keegan Darby

We've definitely had tenants sign leases before units are vacant. We usually do that only on unit where we have good pictures to document what it looks like inside and we have a cooperative tenant moving out. When the tenant is not being cooperative, we tend to make more tentative plans and we try to give ourselves at least 1 week of vacancy just to make sure everything can get done before the next move in. We have had a 1 day vacancy before, but these were the circumstances...

• Had pictures of the unit and we pre leased it weeks before
• Tenants moving out were cooperative
• They allowed us to do a pre move-out walkthrough
• We scheduled 2 or 3 vendors to go on that one vacant day (scheduled in a way so they wouldn't be stepping on each others' toes)
• Then the tenants moved in the next day

It actually went really well, but everything needs to align perfectly for that. In this situation, I think you have the right idea. Virtual tours can work well (especially during COVID-19) and a holding deposit is a good plan.

Bjorn Ahlblad · Answer

@Keegan Darby I would do that to inspect the unit but not to show. Personally we never show until the place is empty and has been made ready to rent; just too many variables. Hostile existing tenant, dirty premises, tenant still there when the new one is ready to move in, just not worth the hassle for me. We do use pics and videos and they are helpful most times. Difficult tenants are a pain. All the best!

Keegan Darby · Answer

@Joyce Tavares Thank you for this! I have decided to do a virtual tour and offer the hold down payment, which rolls into the security dep. if lease agreement is signed. This is excellent advice and much appreciated. Thank you.

Andrew S. · Answer

I've shown units that were lived in and they rarely were well received.  Real estate investors often capitalize off ability to create a vision for what a property can look like after TLC, cleaning, etc. Most folks don't have that ability.  Let them move out, spend the time and money you need to so it's a nice place. Then show it. Vacancies in my area have been very low in COVID.  If it's a decent place, you'll get it filled soon.

Be kind to the person you're asking to move out (without them wanting to).  They can squat, leave it trashed, anything in between.  If you treat them with respect, they're more likely to return it.  Don't be shocked if you treat someone poorly and they treat you poorly.

Debbie C. · Answer

@Keegan Darby

I would not just show up even after giving the proper notice, especially not with Covid issues right now.

I have rentals on the east side of town, South Scottsdale, and demand has been strong. I think if you wait and make sure she is out and replace your flooring as you have planned, then show your property you will be in a great position to get market rent, and a top tenant.

Good Luck

Debbie

Keegan Darby · Answer

@Ethan Jacobsen @Bjorn Ahlblad @Adam Martin @Anna Sagatelova @Debbie C. @Joyce Tavares Account Closed

Thank you all!

Would you sign a lease agreement with a tenant in advance of the date of the current tenant moving out? Or, would you wait until they've actually moved out (to ensure there isn't a willfull holdover eviction)?

Difficult tenant - what should I do?

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