Bought a duplex to rent out- a long time plan I had worked and saved up for years, that was then held up almost a year due to the moratoriums. But the price was right, and it was sort of a last chance, if I waited any longer savings would be gone.

One side is vacant, which is fine. But the other side has an inherited tenant, which is causing me a lot of concern.

The property was owned by a cardiologist- and we all know how much money these people have. He is moving out of town, and owns several rental properties, selling them all.

The problem is his tenant has been living in this place without a lease. She had a lease, but it ran out- and since then, he's been paying her utiltities to boot. He claims she makes rent, but I suspect he's let it go now and then (not 100% sure, but his other actions make that look likely). She also has no Security deposit, he says.

I made a stipulation in the offer that the utilties be transfered into the tenant's name, since the last thing I want is to be stuck housing someone for free and paying all their bills after all this. Instead, he offered to continue paying her utilities. What's more, I learned, she has a large unpaid utility bill, which he's paying off also.

This is all well and good, whatever. But what I'm stuck with is a tenant with no security deposit, no lease... and one who has become accustomed to having their bills paid, if not being able to skip rent. In a state with moratoriums, no less.

Granted the vaccines are coming, and Illinois' moratorium was amended in November to require proof of a COVID related loss of income now to refuse rent. They also, assumedly, won't go on forever once people start getting vaccinated. These were reasons to take the risk.

My thinking is to keep her on a monthly lease- to make it less easy for her to pla the COVID card, and give her the option to leave whenever. She's already expressed (I've heard) a desire for a larger apartment.

But should I demand she put a security deposit down upfront too? I already required she take on the utilties. Her place seems clean and she hasn't damaged it much so far.

I see it almost inevitable that my efforts to make the situation workable will become "the new landlord sucks", since she's had it so good. But I don't have the income to be this lady's sugar doctor.

WWYD?

>>>she also has a large unpaid utility bill, which he's paying off>>>

Yes that's right, that makes as little sense to me as it sounds you. That's what I was told by the realtor.

Must be an unpaid bill she racked up at a previous place?

Anyway this renter looks like its going to end in flames lol. Many red flags, but what can you do. Frankly I'm hoping she moves out for that bigger place and soon....

I have heard more than once doctors are very poor professional landlords. If you purchase the property you’ll have to take charge and lay Down the rules that the tenant must follow.

(mistress) Yeah its hard to say what's going on, but that crossed my mind.

Its too late to require anything else from Doc, I made an offer on the property and he accepted without countering at all, to my surprise.

Luckily I had included requirement that she transfer utilties into her name. Which could be his name (all the better).

I will have to contact her in 10 days with a lease, per IL laws. Should I also require she fill out an application, so I have her job info? Require a deposit, like any new tenant? Is this normal.

I'm not sure what the proper etiquette is for inheriting a tenant. I need to play it safe, but don't want to end up with an offended doctor and hostile tenant inside the walls of Troy, so-to-speak....

you know how us landlords can so easily look like the bad guys when its convenient.

You need to have the tenant fill out an estoppel agreement. This is where the tenant states whether they have paid a security deposit and whether they own the appliances. Maybe she paid a SD, but the seller says no she doesn’t have one - because in reality he is keeping it to pay for her utilities. So in his opinion tenant doesn’t have one because it is used up.

You would also have the tenant fill out an application. You need the SS# for when you check her credit report.

It sounds like she isn't paying either.

I've asked for records showing proof of rent payments several times, and gotten none.

She is living there with no lease, so do I have to offer her one? Wouldn't as the owner I have the option to review her application, and approve/deny it?

I feel like if I don't get her out in the sale, she may end up being a no-pay squatter. Its quite a real fear during the Pandemic

Get a copy of her driver ID. How much deposit did you put down? I'd hold firm on utilities in her name. This is your way to squeeze the Dr. Things may stall and you ask for discount to compensate. No way I trust he keeps utilities in his name after closing, and for how long? Why isn't the lack of proof of rent payment a sticking point? No income it's not a rental deal. Ask for it vacant. Ken has a good idea to add him to the lease. In NY w no lease she would be mtm rental. No reason to offer a lease, unless state mtm terms are lacking.

Before closing on the deal, I have the listing agent approach any tenant and have them fill out and sign an estoppel. The tenant will assert:

a) their monthly rent

b) deposit held by landlord

c) which appliances are the property of the tenant

d) how many people live in the rental and their names

e) name and type of pets

and so on.

Then when I become owner the first thing a tenant will say is, "Hey Robert your refrigerator doesn't keep the food cold, replace it"!

I then check what the tenant put down on the estoppel and they said, "All appliances belong to them -- stove, refrigerator, microwave and window air conditioner"!

So I tell them they can replace their own appliance. Then the tenant stops paying rent and I used to be able to evict before the pandemic. The lies catch up with them... soon enough.

You are heading for trouble,

See if you can get the place vacant.

If not, demand that about $15000 be escrowed to guarantee utilities, rent, damages, appliances, cleaning, etc. in the event tenant fails to pay.

Demand a new rental agreement in place before closing, with a deposit in place. Demand all utilities be paid up and in tenant's name because in some areas they may attach to the property (find out if they do!)

Also: NEVER EVER EVER be alone in any place with this tenant(or any other) as you may be accused of something bad. ALWAYS have at least one witness and preferably more. Perhaps ask why the doctor is paying the bills - mistress or blackmail?

You are heading for trouble,

See if you can get the place vacant.

If not, demand that about $15000 be escrowed to guarantee utilities, rent, damages, appliances, cleaning, etc. in the event tenant fails to pay.

Demand a new rental agreement in place before closing, with a deposit in place. Demand all utilities be paid up and in tenant's name because in some areas they may attach to the property (find out if they do!)

Also: NEVER EVER EVER be alone in any place with this tenant(or any other) as you may be accused of something bad. ALWAYS have at least one witness and preferably more. Perhaps ask why the doctor is paying the bills - mistress or blackmail?

Okay, a few things here...

1) All of this should have been handled when you made the offer. At this point, you are in no position to demand anything unless the Seller fails to comply with all of the contract terms. Tenant doesn't have to sign a lease or pay you a deposit. Your strong card now is if you think you can give her 30 days notice to move after closing and courts will enforce it. The nationwide CDC moratorium doesn't protect tenants from normal lease expiration. Does your state/city have any local restrictions?

2) She still does have a lease in most states. Not in terms of time such as a lease for a year, but rather a lease in most state extends month by month automatically if there is no other agreement. Check your state laws to be certain. So whatever terms the old lease has it most likely what she has. Get a copy of get an estoppel letter that spells everything out.

3) Insist on the utility transfer prior to closing since that was part of your contract. If it doesn't happen, I would back out of the deal or demand further Seller concessions. Seriously. With the odds that B will be inaugurated in Jan, I could see rent moratoriums and even rent forgiveness for all of 2021.

4) What's your plan if she or the Seller stops paying her utility bill?

He's paying her rent and her utilities, so I suspect this is a woman he has "an arrangement" with. He's leaving the area and abandoning her. None of that is your problem.

Make sure he has all the utilities paid up to date. You should be able to have the escrow company handle that detail for you. Her utilities into her name and then it is no longer your problem. Utilities are separated aren't they? I hope you checked about that.

Estoppel before the sale closes.

Once you close have her sign a new rental agreement with you. Go month to month. You might be able to get her to sign the agreement before closing if it is dated to start after you have possession.

When I bought my current property (3 single houses on one parcel) all 3 were occupied. one was by me for 20 years, one was the Landlord's Aunt and Uncle for 10 years and the 3rd a couple who raised pit bulls for profit. All were month to month leases (had no copies of the other 2) but the transfer paperwork told me who was paying what, and who owned the appliances, and what the security deposits were, which got transferred to me. All very neat and tidy.

I immediately wrote up NEW Month to Month leases for each of the 2 rentals, included a small rent increase, gave them 30 days to sign and agree to MY terms. Aunt and Uncle signed and stayed another 20 years. Couple with the pit bulls did not sign, let the dogs escape, one killed my ageing cat, bit my hubby, bit me, and the couple relinquished the dogs. Their renter's insurance compensated us for the medical bills, and they MOVED almost immediately. Happy to see them go. It all worked out OK. They were unhappy we bought the property and already were planning to move.

Others have beat up the letter of estoppel - but if the Doc isn't aware oft hat requirement.......that in itself says a great deal of what you are inheriting

So where many others might tell you to run away from the headache - I am going to tell you the opposite.

>> If you have enough aspirin to put up with the headaches you are volunteering for, I see an opportunity>>

Spoken like a millionaire who has no need for income and would rather not deal with 'headaches'.

Of course it would be so much easier to just not deal with it, or anything else- and just have money instead.

I know its hard for people like the billionaire governor of Illinois to understand.... but some of us are actually forced to do unpleasant things for income. We understand that headaches of one form or another are virtually guaranteed in ANY business- which is quite necessary for us non-landed unfortunates who have to pay bills, eat, and make mortgage/tax payments et al.

That said, I am in the opposite situation as the doctor, and losing money fast. The duplex has been a plan long in coming, and much needed income. However, the Moratoriums mandating free housing has made this extremely stressful.

>>>

Seriously. With the odds that B will be inaugurated in Jan, I could see rent moratoriums and even rent forgiveness for all of 2021.

>>>

I don't need to point out that the current national Moratorium was passed under T, not B.... so it seems to be a general agreement of both parties to screu landlords.

The question is, how long will they go on? The vaccines are coming.

Or will these 'rent free on Thee' edicts become the new norm, whenever a politician needs extra votes?

Realtor is pushing for a cosign requirement on the existing tenant for a sale, as an alternative to seller having her move out.

They came back and said they may be able to get her mother to cosign on the lease, and give proof of her income, since her daughter's rental record is iffy.

What does anyone think of this?

I'd obviously prefer the tenant to move out, but that may not be an option.

My thinking was to just go with a monthly lease then.

It is a good deal on the place price-wise, and I need the income.

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