Inherited tenants that don't meet screening criteria

[Ben D.]

I recently bought a duplex in Milwaukee, WI, which came with long-term tenants (6+ years in each unit). Upon further qualifying them (I goofed and was not aware of estoppal agreements at that time), I have discovered one of the tenant's income does not meet my "3x rent" rule. The seller passed away (I bought from an estate), so it's hard to verify info, but from my knowledge the tenant has paid on time and been a good tenant.

Given the current COVID situation, how would you handle the situation? I'm worried that rerenting the unit may be difficult given everything that's going on. I'm inclined to have my tenancy qualifications included on new month-to-month lease, but then just let it slide as long as payments are coming in on time. That way I'm covered if they ever have an issue paying, and/or if I want them out for some other reason. I can just not renew their lease.

What would you do? Thanks!

[Anna Sagatelova]

If they are paying, just keep collecting. I don't know what market your property is in, but in Cleveland, we have had a very busy leasing season. If it slows down, it would be due to more inventory opening up, not due to COVID. Keep them M2M for a while longer and just see how it goes. If you are confident that they are solid tenants, you can get them on a longer lease, but you can't screen/qualify tenants that are already living there (check your own state and local rules - this is based on my own experience and consultations with attorneys in Cleveland).