Ended a MtM lease in a house hack with bad tenants

[Ben Muska]

Hi everyone!

My wife and I just bought a duplex in South Jersey to house hack. The current tenants in the other unit are on a month to month lease. There are a few problems:

1. The rent is too low ($1350 for a 3 bed/2 bath, plus 5 pets with no pet fees)

2. The tenants aren't paying rent

I provided a notice that either the lease would not be renewed, or the rent would increase to market value (after renovations that are meant to be done when they leave) of $1650 plus $50 a pet. They did not respond in the given timeframe. According to the lease and in observance of NJ law, I provided a 45 day notice of non-renewal. After a few days, I have heard from the tenants telling me to start the eviction process and to go ahead with the increased rent.

This is my first property and I'm not entirely sure what to do here. According to NJ law, a landlord can choose to not renew a lease for any reason if it is a small, owner-occupied property. I'm going to talk with a lawyer, but I'd like to know if anyone has gone through this. They threatened to bring in a lawyer. Do they have any legal grounds? Am I able to evict in this situation while Covid is still a thing? I'm having difficulty finding laws pertaining to this circumstance.

Thanks in advance!

[Ben Muska]

@Rashad Ellis

Hey Rashad. It's...progressing. One tenant is still here with the pets and kids, but I called the police on the husband for domestic abuse. Ugly situation, she's okay, and he's gone now. She intends to leave, and I've offered things like cash for keys, rent forgiveness, and reimbursement for the moving truck.

I know I'm not seeing a dime from these people, but it's not worth pursuing legally to me since they don't have anything to go after.

If I've learned anything from this experience, it's that I wish I'd have gotten these tenants out with cash when purchasing the property. Would have been a lot cleaner and faster. Even if I offered 3 grand, that would have saved me money. If it weren't for that police call, this could have gone on for many more months.

I can't wrap my mind around not paying someone for something that have provided me, buy I also can't understand why someone would attack their wife or berate their kids. Some people are just wired differently, and the moratorium only empowers them in their irrational behavior. General advice for the time being (as well as life in general): don't buy a property that you can't pay for in worst-case scenarios. I'm fortunate to be able to cover the larger mortgage on my own, so it's not the end of the world. I just know it will all have been worth it when this baby starts cash-flowing.

Stay strong and don't lose confidence, tough times weed out the weak and leave plenty of opportunity for those who can hold on.