Can't evict during pandemic? There may be a window for you!

Can't evict during pandemic? There may be a window for you!

Rental Property Investor · Indianapolis, IN · Member since 2009 · 11 posts · 11 votes

Managing rental properties has certainly had it's challenges during COVID-19.  While evictions are still frozen in many areas of the country, income is down while ongoing maintenance costs continue.  To top it off, city inspectors in our area thought it would be a great time to cite property owners for minor exterior repairs like chipping paint and loose brick on exteriors.

Like most landlords with a mid size portfolio, we do financial verification and background checks on all tenants.  But with many tenants out of work or simply home more, no matter how good they looked on paper, we've developed a few "problem children" tenants.  You know the type?  They're the ones the other tenants complain about, don't even try to pay partial rent, and call in maintenance requests for common sense items. 

Our leases allow us to evict for excessive police calls, drug and criminal activity, and several other things other than delinquent rent.  However, an eviction is still an eviction.  

One morning several weeks ago I was reviewing a tenant file and realized his lease had expired.  Our lease provides that if we don't get them resigned prior to expiration, the lease automatically converts to month-to-month.  I called our attorney and asked what would happen if we simply decided not to renew their lease.  He said as long as we don't use the word eviction or cite the reason, we should be clear.  I sent a registered letter to the tenant simply stating that our Board of Directors had reviewed all leases at their regular meeting and decided not to renew his lease.  We gave them 30 days to move out.

It worked!  Not once, but 4 times now I've sent certified mail to tenants explaining their lease wasn't being renewed.  One grumbled a bit, but the others simply moved out without incident.  No courts.  No issues.  If you're in one of those areas with a moratorium on evictions, check with your attorney.  And, should the eviction restriction be reinstated with our new President, you may have a window to fly through!  Happy Landlording!

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Rental Property Investor · Houston, TX · Member since 2017 · 40 posts · 20 votes
5y
Originally posted by @Charles Bradford:

Steve -- That's the beauty of this.  Unless the tenant challenges you, you don't go to court.  "Not renewing your lease" happens frequently when you want the property vacant to remodel and raise the rent substantially.  It also happens when properties change ownership. Sure, if a tenant wants to go against your desires, it's on them to contact counsel and/or take you to court.  But thus far, in our state, it's not considered an eviction at all and we don't report it as such.

Isn't that the problem though? Tenants challenging eviction? Great that your tenants are leaving willingly, but they could not and you'll need to evict them.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y

    Thanks for this information. I have one of those problem tenants. They keep getting rental assistance to catch up their rent. Their Lease expires in April and I am counting the days. 

  • New to Real Estate · Boston, MA · Member since 2017 · 47 posts · 5 votes
    5y

    My tenant lease ended last Dec with 60 day notice to give her extra time to relocate and still refused to move.  What should I do now that the courts have halted eviction filing till sometime mid Feb?

  • Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    Lucky you.  However, you go to court (at least in Portland) think most judges will say a MTM is still a lease and no we don't allow evictions for non-payment or no-cause.

  • Rental Property Investor · Indianapolis, IN · Member since 2009 · 11 posts · 11 votes
    5y

    Steve -- That's the beauty of this.  Unless the tenant challenges you, you don't go to court.  "Not renewing your lease" happens frequently when you want the property vacant to remodel and raise the rent substantially.  It also happens when properties change ownership. Sure, if a tenant wants to go against your desires, it's on them to contact counsel and/or take you to court.  But thus far, in our state, it's not considered an eviction at all and we don't report it as such.

  • Rental Property Investor · Houston, TX · Member since 2017 · 40 posts · 20 votes
    5y
    Originally posted by @Charles Bradford:

    Steve -- That's the beauty of this.  Unless the tenant challenges you, you don't go to court.  "Not renewing your lease" happens frequently when you want the property vacant to remodel and raise the rent substantially.  It also happens when properties change ownership. Sure, if a tenant wants to go against your desires, it's on them to contact counsel and/or take you to court.  But thus far, in our state, it's not considered an eviction at all and we don't report it as such.

    Isn't that the problem though? Tenants challenging eviction? Great that your tenants are leaving willingly, but they could not and you'll need to evict them.

  • Rental Property Investor · Indianapolis, IN · Member since 2009 · 11 posts · 11 votes
    5y

    Chuck -- You are correct.  I think it's all in the way it's presented to them.  If you've had a fairly firm hand on them (enforcing late fees, etc) during their occupancy, my tenants didn't even question it.  I'm just sharing what has worked for me.  If it doesn't work, sure, you're back to where you were w/ eviction.  It's worth a try and costs only the certified mail fee.

  • Member since 2020 · 339 posts · 356 votes
    5y

    I do only month to month for this reason these days . I’ll take any extra” outs” I can find with the crap these politicians are pulling lately . I send a non -renew notice for every person who pays late

  • Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Charles Bradford - What happens if they refuse to willingly leave?  Am I correct to say we will have to go through eviction court (which will get shut down)?

  • Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    I like this approach, in the past I have only wanted to renew for a year at a time thinking it protected me.  In these times I realize this is false security and I am the only one locked in.  This won't work for everyone and that is not what the op was saying, he's just saying what is working for him.  If a tenant is willing to fight they will.  If a tenant doesn't know all their "rights" they may go for it.  Also in KY from my understanding holdover is a violation of lease and you can evict so this may or may not have teeth depending on where you live.  If you do file for holdover just say you are looking to make renovations and need the property empty, make some minor changes and call it a day.  If you have a tenant who is M2M and you haven't non renewed you may as well try it, if it works awesome, if not you are in no worse of a situation than you were.  

  • Investor · Saint Paul, MN · Member since 2015 · 663 posts · 512 votes
    5y

    @Charles Bradford

    Question can you evict if you don’t have a mortgage on the property?

  • Daniel SmythPro Member
    Rental Property Investor · Rockford, IL · Member since 2019 · 471 posts · 342 votes
    5y

    @Steve Morris

    MTM is no lease. Its just not!

  • Rental Property Investor · Indianapolis, IN · Member since 2009 · 11 posts · 11 votes
    5y

    Michael A -- This strategy works for tenants who are not legal savvy.  Of course, they can always decide to fight you on it, but the onus falls on them to start the process. That requires effort and sometimes funds for a retainer.  Depending on how your lease reads, an attorney they go to may simply read it and say "sorry, but you have no grounds here."  And, yes, if it doesn't work, you're back to eviction once the court system in your area thaws out.  If you don't have local counsel, I'd have my lease reviewed (or modified for the future) so you are in compliance with state and local laws.

  • Rental Property Investor · Apex, NC · Member since 2019 · 55 posts · 29 votes
    5y

    @Michael Ablan I’m not sure how it works in other states (I’m in NC), but my property manager said we send the cops there for “trespassing” if they stay after they’ve been given notice that the lease has ended and will not be renewed. I haven’t had to do this yet, so it is still just “ in theory”.

  • Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y
    Originally posted by @Daniel Smyth:

    @Steve Morris

    MTM is no lease. Its just not!

    OK, in Portland it is.

  • Attorney · Northbrook, IL · Member since 2017 · 719 posts · 549 votes
    5y

    This isn't a legal theory, it's making a bluff and hoping the tenant doesn't call you on it. 

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