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Updated about 4 years ago,

User Stats

16
Posts
3
Votes
Dean C.
  • Investor
  • Rockford, IL
3
Votes |
16
Posts

Selling an inhabited rental in era of Covid moratoriums?

Dean C.
  • Investor
  • Rockford, IL
Posted

Property is in Illinois inhabited by tenants and they are current on rent with an assumed month-to-month lease. Despite not keeping the property as clean as I would have liked, overall they have been decent tenants for the last 3 or so years. They keep communication lines open and pay their rent on-time and sometimes even early. I have approached them in the past with possibly selling them the house they rent from me and they expressed interest but financially they are just not disciplined enough to fix their credit to the point of obtaining a mortgage to cash me out. Although they would be open to it, I'm really not interested in any type of carry-back / wrap and not even sure how to structure something like that without triggering the DOS clause and creating a big legal mess. And the husband even mentioned filing bankruptcy as a means to "start over". I certainly don't want my rental encumbered in a bankruptcy unless he declares it after cashing me out.

I would like to get them to vacate the home by early spring so I can make repairs and sell it.  As they have been great to communicate with in the past, I'm thinking about just telling them next month that they need to be out by April 1st as I plan to sell the place.  My biggest fear however is that they cut off all communication, quit paying rent, and take cover under the eviction moratorium. I suspect at that point I would be prevented from evicting them.

How would you approach this.  What are your thoughts?

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