final walkthrough New York State

[Michael Sherwood]

Hey fellow BP folks I have a tenant question in New York state so chime in.

The tenants told us on the 12th of this month they would be moving out august 3rd. not really 30 days notice like our rental agreement says.

These are probably C- tenants they pay on time but they know how to 'game the system'

They demanded a post move out inspection which according to my research is not required in NYS. ( they want to be there when we do it) I assume they are hard up for money and are going to try to swap keys for money ( when at this time they will already be holding over )

Honestly, if the place is clean and in good shape I dont care but I am assume they are trying to create a confrontation of keys for cash.

What do you guys suggest?

ps. they are also trying to sell us the stove they 'own' but according to the lease they signed and the paperwork from when we purchased the place that we own the stove...

thanks!
Mike

[Adam Johnson]

I have a few ideas to offer. First off, I will assume that the tenants have some sort of security deposit. If I understand your post correctly, you purchased this property while this particular tenant was already living there. If that is the case, then their security deposit should have been transferred to you at closing to hold in a separate account. In NY, and likely most if not all of the other states, that security deposit does not "belong" to you until either the tenant says it does, or a judge does. That money is legally theirs, you simply hold it "in trust". This fact is important to understand if you have what I would refer to as "professional tenants" that know the system and how to work it.

I am going to assume that the inspection that the tenant is referring to is their move-out inspection where you review the property for damages that have occurred during their stay. If the prior owner was thorough and diligent, then there should have been a move-IN inspection done at the time the tenant took possession to document the condition of the property at that time. This should have also been transferred to you at closing along with the lease and should have the former owner/managers as well as the tenants signatures.

Here is where it may get tricky - if you don't have a move-IN inspection report and/or pictures taken at the time of their initial possession, you may find it very difficult to prove damages by them if you end up in court. I will take a wild guess and assume that they already know that.

As the landlord, you are now faced with a tough choice - do you want to be right or do you want to win? There is a difference, in my opinion, and I prefer to win. It sounds to me like you won't miss them when they are gone, which is why you didn't sound too concerned about the inadequate notice.

Not knowing the temperament of this particular tenant, I will take a stab at what I would do in your shoes. If they are somewhat unstable, you may want to tweak this plan. I would gently remind them that you are cutting them some slack by accepting less than a full month's notice. In return, you are expecting that they leave the place in move-in ready (cleanliness) condition when they turn the keys back over. I would also point out that the prior owner already transferred ownership of the stove to you when you purchased the stove. If they have concerns regarding that, they should contact the former owner (tread lightly, this may become sticky). I would then set up a mutually agreeable time for you to inspect the property together. When you do so, let them know ahead of time that the results of the inspection will determine if the place is clean and not damaged beyond reasonable wear and tear. I would also tell them that after you complete the inspection together, you will contact your accountant to transfer funds from your security deposit account and it will be mailed to them.

This accomplishes 2 things, it lets them know ahead of time not to expect an exchange of money at the transfer and it also buys you a little time if there are problems in order for you to figure out what to do next.

If you don't have a move-in inspection form to compare the "then and now" property conditions, you are at a severe disadvantage. In your situation, if the appliances, kitchen, bathroom, floors and walls are clean, I would be happy.

On the flip side of the argument, you could try to prove you are right and dig your heels in. If they decide not to give you the keys, then you have a hold-over and may end up in eviction court (more time and money along with lost rent and possible damage). You could force them to live up to the agreement they signed and say that they didn't give you adequate notice, meaning they have to pay for August too. After it is all said and done, you can walk away and say "you showed them who was in control", but what do you really gain financially?

I grit my teeth every time a tenant puts me in this type of position. It is difficult not to be right on all counts. But in the end, this is an investment and time is money. The sooner they are gone, the sooner you can put another paying tenant in there and move on to other business yourself.