Inherited tenants that are entitled

[Joshua Mellor]

I purchased a 4plex in February which had inherited tenants. One apartment I knew was going to be a problem as the stopped paying the previous owner when covid started even though they continued to work. After I purchased they have paid me but never on time and always in installments. The guy has been arrested before for drugs and domestic issues before and seems like he thinks he is entitled to do anything he wants. Also you can tell that he is upset every time he pays me almost like he feels he shouldn’t have to. Well when I can’t get ahold of him I will text his girlfriend who is also on the lease or do a group text because sometimes that’s the only way I get a response. Now he is telling me it’s his apartment that she isn’t on the lease and he pays all the bills so only go through him. He sent a text tonight at 1030pm saying the same thing and saying how he wants a 1 year lease which obviously I will not do. I want him out now and haven’t signed a new lease because his was up in November with the previous landlord but with the moratorium I assume he will stop paying if I tell him I want him out in 30 days. So far I have been managing to be as nice as possible but now I have to tell him I will not do a 1 year lease and that his girlfriend is on the current lease so she has every right to know when rent is late or there is an issue. Any suggestions?

[Joe Martella]

@Joshua Mellor, I hope you were able to negotiate a favorable purchase price accounting for this non-paying tenant.  On the bright side, they have been paying you, albeit late and in portions.  It makes me wonder why they started paying you when they haven't been paying the previous landlord for almost a year.  Why not just stay as a non-payment tenant?  Then again, he probably thinks that he is starting off at scratch with you, which is maybe why he started paying.  

There are a couple of things that I would consider, of course I am not an attorney, but I want you to keep your options open.

1.  Just as you inherited the tenants lease, you also inherited the debt owed.  This probably will depend on  the previous owners recordkeeping.  I would remind the tenant that they still owe that rent.

2.  You can try giving cash for keys.  Give him a financial incentive plus forgive the prior rent owed.  If he leaves you will not seek a judgement against him or wage garnishment for the back rent owed. 

3.  You can seek legal help, but know that we are in that moratorium you are subjected to in addition to the backlog.  

As for the texting, you can just keep texting the group.  Others on here will tell you that texting isn't the proper form of communication - stick to e-mail or letters, but the reality is that the world moves via text now.  What is he going to do if you keep the group text going?  

You can say that you are just a manager, but the cat is probably out of the bag by now.  My tenants know I am the owner and decision maker.  Just own your decisions and press forward.