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1
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Kerry Shelke
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1
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Smokers with MTM Lease

Kerry Shelke
Posted

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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Bryant Nicholson
  • Rental Property Investor
  • North Liberty, IA
5
Votes |
5
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Bryant Nicholson
  • Rental Property Investor
  • North Liberty, IA
Replied

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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Colleen F.
Pro Member
  • Investor
  • Narragansett, RI
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Colleen F.
Pro Member
  • Investor
  • Narragansett, RI
Replied

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. 

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Nathan Gesner
Property Manager
Agent
Pro Member
  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
Property Manager
Agent
Pro Member
  • Real Estate Broker
  • Cody, WY
ModeratorReplied

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.

  • Property Manager Wyoming (#12599)

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Tracy Streich
Property Manager
Pro Member
  • Real Estate Broker
  • Tulsa- OKC Oklahoma
800
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868
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Tracy Streich
Property Manager
Pro Member
  • Real Estate Broker
  • Tulsa- OKC Oklahoma
Replied

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.