Smokers with MTM Lease

Smokers with MTM Lease

Member since 2020 · 1 post · 0 votes

I purchased a building over a year ago in Iowa and have one remaining long term tenant (11 years). He's elderly, has emphysema, smokes at least 2 packs of cigarettes a day. He refuses to stop smoking indoors (he can barely walk to smoke outdoors) and has guests who smoke in his unit as well as common areas despite our requests of no smoking in common spaces. He pays his rent on time and otherwise is a great tenant. He has a month-to-month lease as well and his rent is below market rate. The issues are now with other tenants affected by the non-stop smoking and smell. Other tenants (non-smokers) have complained their units and clothes smell like smoke. Additionally, a "new" tenant has asthma and is worried about her health.  I have resisted raising rent because I feel for the guy. I know, I know.....business, but he's also been there over a decade and I am torn on what to do. We've renovated all of the units but his since he is the only tenant who has stayed. We've spent so much on bringing the building back to life after being ignored for years so I want to protect our investment but also want to remember the human factor. Thoughts and ideas? Truthfully, I would not like him to stay.

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Rental Property Investor · North Liberty, IA · Member since 2019 · 5 posts · 5 votes
5y

Hey Kerry,

It's always a tough decision terminating their lease when their health isn't in the best shape. However, if you gave him every opportunity to stop smoking and he has refused, he is solely responsible for the termination and you should not feel bad. You cannot put others in the building at risk and your investment at risk because of his refusal to follow the rules. I would give him a notice to terminate the mo to mo lease and evict if he does not move out.

I think you know what the right decision is, good luck to you.

Bryant Nicholson

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  • Rental Property Investor · North Liberty, IA · Member since 2019 · 5 posts · 5 votes
    5y

    Hey Kerry,

    It's always a tough decision terminating their lease when their health isn't in the best shape. However, if you gave him every opportunity to stop smoking and he has refused, he is solely responsible for the termination and you should not feel bad. You cannot put others in the building at risk and your investment at risk because of his refusal to follow the rules. I would give him a notice to terminate the mo to mo lease and evict if he does not move out.

    I think you know what the right decision is, good luck to you.

    Bryant Nicholson

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    5y

    Unfortunately you have to get him out.  You have made the building non-smoking and he is not complying. You can 1.  Serve notice of non-compliance. 2. Raise the rent.  3. Terminate the lease agreement with 30 days notice.  I think  if you have done #1 and 2.  It is time for #3. He may be a candidate for senior housing. 

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    You already answered your own question. You just need to put on your business pants and make it happen. You don't have to be ugly about it. Just simply tell him he is renting below market and his smoking is damaging the unit and your ability to find quality renters. Give him whatever notice your state requires and move on. You'll be happy you did.

    I have some good tips for renovating a smoker unit. See THIS THREAD for description and pictures.

    The DIY Landlord Book4.7248 Reviews
  • Tracy StreichPro Member
    Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
    5y

    If it was just a single family I would say the damage is done but since it is effecting other tenants it is time to act.    Post 30 day notice and get him moved.   Document everything and send it certified mail as well. 

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