Tenant Ignoring Nonrenewal - Advice?

Question

Hi everyone,

I'm running into an interesting situation and am not sure which path to take.

I own both sides of a townhouse-style building.  I am actively showing one unit to potential tenants, but the unit next door os currently inhabited by a family that is causing some headaches.  The family in the inhabited unit was on a month-to-month lease until a couple of months ago, at which point I had my attorney send them a 30-day notice of nonrenewal of lease.

The tenants are effectively ignoring the nonrenewal notice, and my attorney has reached out directly to these tenants a number of times in order to offer them more time to vacate, as they are a little older, aren't in the best physical health, and have an adult son for whom they care.

My attorney is communicating with the tenants on my behalf, exclusively, as I wanted to be as legally cautious as possible.

The tenants are not responding to my concession to allow more time to vacate (they asked for an additional six months - unreasonable - I countered with two months), and they still claim to my attorney that we have a valid lease, despite there being a valid nonrenewal notice having been issued.  So, the tenant is not being truthful.

I have not, as of yet, proceeded with an eviction (which are still subject to a moratorium in Illinois).  They have also not responded to a cash-for-keys suggestion that I and my attorney made.

Payment of rent has never been an issue.  However, they have flagrantly broken several of the lease terms.  There is also the issue of domestic disturbances that I have heard from the previous tenant in the connected unit (she sadly passed away earlier this year, hence the ongoing new tenant showings), as well as the neighbors, as well as the local police blotter.  Aside from the blotter, the other anecdotes are all hearsay, but this coupled with the non-truthfulness is concerning.

My attorney has suggested that our two options are either eviction, or I sell the property.  I'd really prefer not to sell, but with my attorney's concern about the moratorium being an obstacle, I am searching for some insight or creativity as to what to do next.

Any advice is welcome and appreciated!

Nathan Gesner · Answer

In my opinion, your attorney isn't much help. If they were worth their weight, they would be walking you through this process and preventing you from having to ask for free advice from a bunch of strangers.

That said, I would start the eviction process. You're trying to be reasonable with unreasonable people. They see you as an adversary and will not do anything that benefits you. Get rid of them and move on. Do it now before they find a way to make your life more miserable.

Joe Splitrock · Answer

Where are they located in Illinois, because Chicago requires 90 day notice for non renewal.

You say they have "flagrantly broken several of the lease terms" but can you explain what those violations were? Did you send them written notice of violation when they occurred? It is a good idea to have documentation. Evicting a paying tenant with health issues that are caring for an adult child (disabilities or health issues themselves most likely) could be problematic.

Is the non-truthfulness you refer to, them saying they have a valid lease? Have your attorney request them to send him a copy of the verbiage in that lease. They can take a picture of each page and text it to him. He can offer to "review" such claim. They could be misunderstanding their lease contract and he can explain it to them.

I am not at all a fan of cash for keys for a number of reasons. I would suggest one of two things:

1. Since they are paying, grant their request for six month extension and document it with them signing an agreement to vacate on a specific date, acknowledging that you are giving them a six month extension. If it goes to eviction, this paperwork looks good for you in the court.

2. Proceed to eviction. This is my preferred option. Once you give someone notice, you have to follow through if they don't leave willingly. Threats without consequences just mean they will keep stalling. Assuming you are not in Chicago and bound by 90 day notice, the eviction moratorium should not apply since they are paying rent. File paperwork and proceed.

Understand that the reason they are not leaving probably has nothing to do with money. Someone in poor health caring for an adult child is in a bad spot in life and moving is very overwhelming. The "6 month" reprieve is likely just a stall tactic. I don't think moving in Illinois in December right before Christmas is a more opportune situation for them. Good luck evicting someone in December or January so you are probably better to move forward now.

Joe Splitrock · Answer

It is also worth noting that I think Illinois has a hold over law that allows you to charge double rent during hold over. It requires notification of double rent. Talk to your attorney about this, but this could be additional leverage.

https://www.ilga.gov/legislati...

Brie Schmidt · Answer

The moratorium doesn't cover tenants who don't have a valid lease.  I filed eviction on one earlier this month who didn't leave after he was given notice

Theresa Harris · Answer

You've tried the creative approaches and they haven't worked.  Proceed with the eviction.

Greg M. · Answer

First off, this is why you have a holdover tenancy clause in your leases with a significantly higher monthly rent.

Does Illinois allow eviction for things other than non-payment? Some states with moratoriums allow for eviction for holdover tenancy and lease violations.

Account Closed · Answer

To start with trying to get the tenants our, your first mistake was hiring an attorney that probably intimidated them and you caused them to build a wall that reduced your ability to communicate in any compassionate manner when you know they are elderly and have a family member they care for.

COVID has caused everyone on this planet a huge amount of stress and now you want to add more stress by upending your tenants' lives. COVID has dramatically changed the way landlords terminate their tenants tenancy so landlords are now treating their tenants more compassionately and with soft gloves.

Last year, I told my management company in Las Vegas to terminate a tenant so I could sell the house. The tenant asked for an extension several times and said she could not find a house. So, my management company sent her an eviction notice. The tenant called me and said she needed more time because her husband was in the hospital on a respirator for 38 days. I told the tenant she could stay as long as she needed. My management company called me and read me the riot act so badl I almost swore at the owner. About 30 days later, I called the tenant to see how her husband was doing and he passed away the night before.

Eric James · Answer

You won't last as a landlord that way. You shouldn't need to use a lawyer to send out a notice to vacate. Should learn to do this yourself. You don't give people "extra time" to vacate. When you do things like that you end up being concerned because they are "ignoring nonrenewal". You give them notice and then proceed with eviction. If that takes a while, so be it. You won't last trying to appease or bribe tenants.

Drew Sygit · Answer

Another idea...

The Eviction Moratorium will hopefully end June 30.

Even then though, good luck getting a court date with the backlog of cases.

Given this challenge, it may make sense to extend their lease through February or 2022 - at a higher rate. Ask them how much more they can pay to stay.

Next year should be a much easier time to evict if they still won't cooperate.

John Warren · Answer

@Mike J. evictions are starting back up, so you will eventually be successful. I agree with  many of the other commenters though that your attorney really should be able to walk you through this. The rules are different depending on where the property is located, so even those of us who are in Illinois can't necessarily help unless we know where the property is located.

I would look at this more as a business decision. With the moratorium coming to an end, you will eventually get them out. They have rejected all of the better solutions like lease termination and cash for keys. Eviction is truly your only option at that point to get your property back. Only you can decide if a 6 month to one year process is worth it or if you would rather sell.

Having said that, selling a property with a non cooperative tenant is not necessarily easy either. I have several listings now where we are helping our sellers with this issue, and it is not easy even with the experience level I have dealing with tenants. Most owners do not want to discount the property to compensate the new buyer for taking over this tenant headache. Are you ok with taking a 10% haircut on the price? How about 20%? These are the types of business decisions you will need to work through.

Tenant Ignoring Nonrenewal - Advice?

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