Great Tenant - pls leave (by Tyler A. [OH]) Jul 9, 2022 3:00 PM|
Great Tenant - pls leave (by WMH [NC]) Jul 9, 2022 3:14 PM
Great Tenant - pls leave (by small potatoes [NY]) Jul 9, 2022 3:58 PM
Great Tenant - pls leave (by Tyler A. [OH]) Jul 9, 2022 4:09 PM
Great Tenant - pls leave (by DJ [VA]) Jul 9, 2022 4:26 PM
Great Tenant - pls leave (by Robert J [CA]) Jul 9, 2022 4:38 PM
Great Tenant - pls leave (by WMH [NC]) Jul 9, 2022 4:49 PM
Great Tenant - pls leave (by MC [PA]) Jul 9, 2022 5:35 PM
Great Tenant - pls leave (by Tyler A. [OH]) Jul 9, 2022 5:44 PM
Great Tenant - pls leave (by MikeA [TX]) Jul 9, 2022 6:05 PM
Great Tenant - pls leave (by Ken [NY]) Jul 9, 2022 6:44 PM
Great Tenant - pls leave (by Dave [MO]) Jul 9, 2022 8:26 PM
Great Tenant - pls leave (by Tyler A. [OH]) Jul 9, 2022 8:35 PM
Great Tenant - pls leave (by Mary [MI]) Jul 9, 2022 8:42 PM
Great Tenant - pls leave (by Phil [OR]) Jul 10, 2022 1:29 AM
Great Tenant - pls leave (by Jim in O C [CA]) Jul 10, 2022 7:16 AM
Great Tenant - pls leave (by Tyler A. [OH]) Jul 10, 2022 8:31 AM
Great Tenant - pls leave (by Jim in O C [CA]) Jul 10, 2022 9:56 AM
Great Tenant - pls leave (by Oregon Woodsmoke [ID]) Jul 10, 2022 10:32 AM
Great Tenant - pls leave (by Oregon Woodsmoke [ID]) Jul 10, 2022 10:33 AM
Great Tenant - pls leave (by kevin [FL]) Jul 10, 2022 11:28 AM
Great Tenant - pls leave (by Scott [IN]) Jul 10, 2022 11:38 AM
Great Tenant - pls leave (by Scott [IN]) Jul 10, 2022 11:54 AM
Great Tenant - pls leave (by Allym [NJ]) Jul 10, 2022 1:16 PM
Great Tenant - pls leave (by MC [PA]) Jul 10, 2022 1:22 PM
Great Tenant - pls leave (by S i d [MO]) Jul 10, 2022 2:46 PM
Great Tenant - pls leave (by Tyler A. [OH]) Jul 10, 2022 7:04 PM
Great Tenant - pls leave (by Ray-N-Pa [PA]) Jul 10, 2022 10:14 PM
Great Tenant - pls leave (by Tyler A. [OH]) Jul 11, 2022 10:05 AM
Great Tenant - pls leave (by Nicole [PA]) Jul 11, 2022 10:22 AM
Great Tenant - pls leave (by Oregon Woodsmoke [ID]) Jul 11, 2022 11:03 AM
Great Tenant - pls leave (by Vee [OH]) Jul 11, 2022 12:29 PM
Great Tenant - pls leave (by Ken [NY]) Jul 11, 2022 4:28 PM
Great Tenant - pls leave (by Or [MI]) Jul 14, 2022 1:14 PM
Great Tenant - pls leave (by Or [MI]) Jul 14, 2022 1:16 PM
Great Tenant - pls leave (by Mike Butler [KY]) Jul 14, 2022 1:57 PM
Great Tenant - pls leave (by Linda [TN]) Jul 14, 2022 2:40 PM
Great Tenant - pls leave (by Winnie [NC]) Jul 14, 2022 2:55 PM
Great Tenant - pls leave (by JBR [NC]) Jul 14, 2022 8:56 PM
Great Tenant - pls leave (by Dennis [IL]) Jul 14, 2022 9:18 PM
Great Tenant - pls leave (by Shelley [NJ]) Jul 15, 2022 7:01 AM
Great Tenant - pls leave (by L.J. [OH]) Jul 15, 2022 8:13 AM
Great Tenant - pls leave (by Steven [CO]) Jul 15, 2022 8:45 AM
Great Tenant - pls leave (by GingerLou [GA]) Jul 15, 2022 9:06 AM
Great Tenant - pls leave (by Jerry Wimberly [TN]) Jul 15, 2022 1:42 PM
Great Tenant - pls leave (by Jerry Kirschner [MI]) Jul 16, 2022 3:24 AM
Great Tenant - pls leave (by BRAD 20,000 [IN]) Jul 16, 2022 2:36 PM
Great Tenant - pls leave (by BRAD 20,000 [IN]) Jul 16, 2022 2:39 PM
Great Tenant - pls leave (by Trish [FL]) Jul 18, 2022 2:06 PM
Great Tenant - pls leave (by Tyler A. [OH]) Posted on: Jul 9, 2022 3:00 PM
Great 9 yr tenant in single family home (mo-to-mo lease). They have kept the home EXTREMELY clean inside & out (practically rent ready). Always on time with rent (even thru 2020 Covid shut down). They don't bother me with minor repairs. Furn filters are changed regularly, yard is tip top shape w/mulch. As a small-time LL, I choose consistency over turnover and have never raised the rent ($1,250/mo.) I don't think they can afford much more than that amount. Market rent is now probably around $1,800/mo due to surge in prices over past 2 yrs. Home prices have also escalated so much that I want to sell the home and cash out. This would likely be a retail sale to a 1st time or move up buyer in the $250k price point. Tough to sell a home with tenant in place to a owner-occupant buyer so it would be best if tenant moves out. Tenant can't buy due to self employed status and documenting income. Rental inventory is so low that I think they will have a very difficult time finding alternative housing. Looking for ideas on how to accomplish a smooth transfer without it getting nasty and would like to keep it as friendly as possible. Maybe 60 days notice + some incentives? --216.68.xxx.xxx
Great Tenant - pls leave (by WMH [NC]) Posted on: Jul 9, 2022 3:14 PM
It seems all good things must come to an end.
We have decided that it is time to sell the property and move on. You have been a truly exemplary tenant but we do need to sell.
Let's discuss what will work for both of us.
What sort of terms will work for you? We want to make this as easy as we can for you. Would 60 days notice to vacate work? That, and we would provide you with a letter of reference for your search, and answer any questions from any prospective landlords.
Any other ideas? --50.82.xxx.xxx
Great Tenant - pls leave (by small potatoes [NY]) Posted on: Jul 9, 2022 3:58 PM
offer to rent the moving truck! --24.194.xxx.xx
Great Tenant - pls leave (by Tyler A. [OH]) Posted on: Jul 9, 2022 4:09 PM
I like your wording WMH. I will build on that. Also like the moving truck idea by "small potatoes". I'm struggling with how to handle it since they are not your run-of-the-mill tenant and i appreciate their loyalty and consistency over the years. --216.68.xxx.xxx
Great Tenant - pls leave (by DJ [VA]) Posted on: Jul 9, 2022 4:26 PM
It sounds like they can't qualify for a traditional mortgage. But, based on their history with you, would they possibly qualify for seller financing from you?
The monthly payments could spread out your tax liability (check with your CPA).
Or do you want a big chunk of cash all at once for some purpose? --68.229.xxx.xxx
Great Tenant - pls leave (by Robert J [CA]) Posted on: Jul 9, 2022 4:38 PM
Maybe, offer to sell your tenants the home and carry back the first mortgage at 6% interest with a 20% down payment -- if they qualify. You would be saving the sales commission and any needed upgrades. --47.156.xx.xx
Great Tenant - pls leave (by WMH [NC]) Posted on: Jul 9, 2022 4:49 PM
Moving truck EXCELLENT idea. They are SOOOO high right now - what used to be a $19.95 deal is now $700 in some areas. --50.82.xxx.xxx
Great Tenant - pls leave (by MC [PA]) Posted on: Jul 9, 2022 5:35 PM
We have the same. We will sell next year. The plan is to offer to them after we come up with the price. Not holding a mortgage. We want to walk away. --73.230.xxx.xx
Great Tenant - pls leave (by Tyler A. [OH]) Posted on: Jul 9, 2022 5:44 PM
Robert & DJ...thanks for the suggestions but i'm not interested in seller financing. I think the payment would be too much for them to afford as they are just able to handle the $1,250/mo rent. Some national and regional investment companies have been paying a handsome amount for rentals. I am going to explore a couple of those options before alarming the tenants about moving. --216.68.xxx.xxx
Great Tenant - pls leave (by MikeA [TX]) Posted on: Jul 9, 2022 6:05 PM
You just as well warn them now. Anybody who buys it as an investment is not going to leave $550+ per month on the table out of the goodness of their heart. Its a business. --67.79.xx.xxx
Great Tenant - pls leave (by Ken [NY]) Posted on: Jul 9, 2022 6:44 PM
I would just tell them to move,offering them anything will just be seen as a sign of weakness and they will be a pain so just tell them to move --74.77.xx.xx
Great Tenant - pls leave (by Dave [MO]) Posted on: Jul 9, 2022 8:26 PM
Agree with Ken. Give them notice to vacate 30 days would be sufficient.
I wouldn’t start negotiating perks most likely this will come back and bite you.
It’s a business and treat it that way. Do what’s best for you and sell the house
for top retail.
Paying on time and taking care of the house is what a tenant should do. --162.249.xx.xxx
Great Tenant - pls leave (by Tyler A. [OH]) Posted on: Jul 9, 2022 8:35 PM
Thanks for the "it's a business" comments. --216.68.xxx.xxx
Great Tenant - pls leave (by Mary [MI]) Posted on: Jul 9, 2022 8:42 PM
I have found that many times the tenant you have now may be a totally different tenant after you tell them to move. It happened to me, Lovely tenant until it was moving time.. She also did not 'bother' me with small repairs(and there is always a reason for that). She moved but would not give me her forwarding address. Less than 30 days later I received a letter from her demanding her security deposit and sent me her PO Box number. She wrote a nasty letter how I refused to make repairs when she called, the property had a lot of problems,I neglected the landscaping (this was a sfh).She immediately stopped paying her rent and water. It was hard to believe that this was my tenant.
She was hoping that I would not have time to mail the security deposit letter.
I was prepared I did find her new address and mailed the security accounting letter a few days before the deadline, however I could also have mailed it to the old address. She also was paying rent that was $400 below market---so be careful
Great Tenant - pls leave (by Phil [OR]) Posted on: Jul 10, 2022 1:29 AM
Self employed does not mean that they could not purchase a home. I was self employed nearly all my adult life- starting at age 28. Purchased homes multiple times- both my own and rental property as self employed using normal finance. What it does mean is being willing and able to show your income for the prior two years-- and that you paid income tax on it. A few more hoops to jump through, but nothing major. --76.138.xxx.xxx
Great Tenant - pls leave (by Jim in O C [CA]) Posted on: Jul 10, 2022 7:16 AM
Since you will probably receive a pile of cash I would offer 3 or 6 months move out reward to be paid after move out if everything goes smoothly. I did this with a long term tenant for $5000 and the place was spotless and they were thrilled plus I deducted it on my taxes. --99.23.xxx.x
Great Tenant - pls leave (by Tyler A. [OH]) Posted on: Jul 10, 2022 8:31 AM
Jim, I appreciate your suggestion. I am leaning towards some type of "reward" to help make this a smooth transition. I don't want to give the farm away, but if it takes a couple thousand to ease the stress, I am willing to sacrifice the money for peace of mind. If the situation turns adversarial, I'm not really set up to handle playing hardball with a tenant due to time and navigating the system to properly get them out if things got nasty. This is why I'm selling and not continuing in the rental game. It's a difficult situation because I know how scarce rentals are right now in this area and they have a child who is very entrenched in his school (which is why they moved to my rental 9 yrs ago). I honestly think they are not going to be able to find a replacement property in the next 40 days if I ask them to vacate by 9/1/22. They have also been a great referral source by sending other tenants to me. So, I'm sure in their mind, they've helped me along the way. --216.68.xxx.xxx
Great Tenant - pls leave (by Jim in O C [CA]) Posted on: Jul 10, 2022 9:56 AM
In my example my property went from $89,000 to $399,000 so even after taxes and depreciation recapture I netted a pile. Plus they were very helpful to my realtor and moved out on time. $5,000 was like the lottery to them. --99.23.xxx.x
Great Tenant - pls leave (by Oregon Woodsmoke [ID]) Posted on: Jul 10, 2022 10:32 AM
The market has stalled here. Not gone down, but buyers are pausing to take a look around. Check your market carefully to make sure the house will sell.
I always offer the house to the tenant first. Give them a few days to talk to a couple of mortgage brokers. There are first time homeowner mortgages that are basically nothing down and if you offer to pay closing, they can own that house for not much upfront. The last one I sold, the buyer literally only came up with $1,000.
If they can't buy, they at least know that you offered it to them first. I've been surprised by which tenants bought property from me, so at least let them try.
If you want to find a buyer while they are still in the house, offer them a bounty if a buyer buys before they are out, make it enough to make it worth their pain to show the house. However, it is easier to sell while empty, clean, and repaired. --76.178.xxx.xxx
Great Tenant - pls leave (by Oregon Woodsmoke [ID]) Posted on: Jul 10, 2022 10:33 AM
Adding this, make sure they know that they can move early without penalty if they find a place quickly. No one will hold a place for them and it sounds like they can't afford rent on two places at once. --76.178.xxx.xxx
Great Tenant - pls leave (by kevin [FL]) Posted on: Jul 10, 2022 11:28 AM
Remember, cash will melt and if you are Medicare age your cost will go up due to the sale. If you don’t need all of the cash now hold the note and save on the tax hit while still making money. --47.205.xxx.x
Great Tenant - pls leave (by Scott [IN]) Posted on: Jul 10, 2022 11:38 AM
Pay for the moving truck AND 1st month rent of a storage unit if it starts to look like they won't be able to find a place by their move-out date. Having a place to put their stuff will ease a difficult transition. Then they can stay with friends, relatives, or in a hotel if they are homeless at the deadline. --107.141.xx.xxx
Great Tenant - pls leave (by Scott [IN]) Posted on: Jul 10, 2022 11:54 AM
This is probably obvious, but don't directly pay for the rentals. Let the tenant put them on his credit card, then reimburse a pre-agreed amount when you get a copy of the receipt. --107.141.xx.xxx
Great Tenant - pls leave (by Allym [NJ]) Posted on: Jul 10, 2022 1:16 PM
Do you have other income? There is no place to invest that money. Banks pay no interest. Stock market is uncertain due to economy handling. You are getting money coming in. I am not selling any of my last three for that reason. But I feel that values will be tanking in some areas as the people with the govt. handout downpayments will fail at the mortgages. Govt. may bail them out or seize the homes and make them renters again. --108.24.xx.xx
Great Tenant - pls leave (by MC [PA]) Posted on: Jul 10, 2022 1:22 PM
Who knows, maybe someone wants tenants. --73.230.xxx.xx
Great Tenant - pls leave (by S i d [MO]) Posted on: Jul 10, 2022 2:46 PM
Market rent is $1800; they're paying $1250. And you're thinking of offering moving compensation and rewards?
Keep in mind they have already received $6,600 of "rewards" over the past 12 months paying below market rent. To me, that is more than sufficient for basically being a decent tenant. Paying the rent on time, mowing the yard and not bothering the LL with trifles is average behavior in my book.
Their inability to purchase a home or find a new rental is not your concern. Again, that is standard, par for the course life of being a renter. LL can issue non-renewal any time with proper legal notice.
Self-employed people can buy a home... IF they have been accurately reporting their income yearly to the IRS. So if I'm understanding you correctly, either they have very little history with their business, or they are tax cheats and you're further subsidizing them with your tax dollars.
I see no reason for bonuses or perks in this story, unless I've really missed something.
Great Tenant - pls leave (by Tyler A. [OH]) Posted on: Jul 10, 2022 7:04 PM
Thanks for all of the input! After reading all of the comments, my gut tells me to be honest with them and present all of the facts (comparable rents, home values, how much money they have saved over the years with below market rent). I will offer them the opportunity to purchase the home at a fair price. If they are unable to obtain financing, then I have done my good deed and will offer them assistance on a storage unit and moving truck to ease the transition. I understand that I cannot "fix" everyone and I need to man-up and make the uncomfortable choice to initiate action. --216.68.xxx.xxx
Great Tenant - pls leave (by Ray-N-Pa [PA]) Posted on: Jul 10, 2022 10:14 PM
You seem wise to see what needs to get done. So many on here know what needs to get done but simply don't do it.
Great Tenant - pls leave (by Tyler A. [OH]) Posted on: Jul 11, 2022 10:05 AM
I agree Ray-n-Pay. Now I have to put my words into action. --216.68.xxx.xxx
Great Tenant - pls leave (by Nicole [PA]) Posted on: Jul 11, 2022 10:22 AM
I would give them 2 month's notice. I wouldn't tell them up front but if I was sure they had a place and were moving, I'd extend it up to three should they need that time for a smooth transition. I would tell them you will stay in touch, weekly, to see their progress. That way, at the end of two months, you are not surprised by what is happening.
I would not ...honest with them and present all of the facts (comparable rents, home values, how much money they have saved over the years with below market rent)... That will mean absolutely nothing to them... those are your "issues", not theirs.
If I could see they were truly trying to go (remember the weekly stay in touch) but were running into monetary issues, I would pay the U-Haul (directly pay it, not give them the money), pay a storage rental for a month, etc., Something directly to assist them.
Many don't "know" their tenants but after 9 years, I would know mine so I would know from chatting with them what the situation is ... as mentioned above, they may change their attitude.
Also, talk to them first. Tell them you need to follow that chat up with written notice. --98.237.xxx.xx
Great Tenant - pls leave (by Oregon Woodsmoke [ID]) Posted on: Jul 11, 2022 11:03 AM
[[[..... Who knows, maybe someone wants tenants.....]]]]
I'd take his tenants. They sound wonderful. Except the lowest rent I would have is $2200 a month and they can only afford $1250. I'm willing to take a tiny bit less for perfect tenants, but not $1,000 a month less.
Some other landlord might want the house with good tenants in place, but not at $600 under market.
Single family homes bring the most money when sold to private owner/occupants and there is no reason for the OP to hand his profit over to someone else just because he doesn't want to send his tenants to rent elsewhere. --76.178.xxx.xxx
Great Tenant - pls leave (by Vee [OH]) Posted on: Jul 11, 2022 12:29 PM
ORC 5321 allows a 30 day notice, first thing is a rent increase, this will awaken the sleepy tenant that the cost of business is rising and it is on the street they live on also. Lazy management has allowed this to occur, and you can show them they have saved a lot as Sid indicated, more than a deposit and moving cost. Depends where in OH you are, N E has had steep insurance cost from the storms last 3-5 years, I have a place tree limbs killed the roof 3 times in 5 years. --76.190.xxx.xxx
Great Tenant - pls leave (by Ken [NY]) Posted on: Jul 11, 2022 4:28 PM
Oregon,if they would lower the sale price of the house enough to make up for the low rent i would buy it,then i would evict the tenant and get the full value of the house,that would make some owners feel better about themselves not being the bad guy but it wouldnt bother me --74.77.xx.xx
Great Tenant - pls leave (by Or [MI]) Posted on: Jul 14, 2022 1:14 PM
Hopefully you have other homes that you can offer. If you do want to keep in the same home, talk to resident and explain that everything is going up and ask what price he would feel comfortable in. Most likely he will than start to check and realize things changed.... --73.191.xxx.xxx
Great Tenant - pls leave (by Or [MI]) Posted on: Jul 14, 2022 1:16 PM
Also, you can refer them to us.... --73.191.xxx.xxx
Great Tenant - pls leave (by Mike Butler [KY]) Posted on: Jul 14, 2022 1:57 PM
LEt's make this a WIN-WIN-WIN, instead of forcing her to move, this is her HOME. Why not let her have "dibbs" on it first. HELP HER TO BUY HER HOME - if credit dinged, help her, if she is worried about maintenance and repairs, BUY a Home Warranty. You will not have to pay any commissions nor would you lose any payments if structured properly. HELP HERE with down payment or first time homebuyer assistance... Your Thoughts, i would pursue this first before forcing her to move and sell. --207.98.xxx.xxx
Great Tenant - pls leave (by Linda [TN]) Posted on: Jul 14, 2022 2:40 PM
Before I send a letter I would call my tenant and tell them of my plans to sale. --97.95.xxx.xxx
Great Tenant - pls leave (by Winnie [NC]) Posted on: Jul 14, 2022 2:55 PM
I just sent a letter to a tenant. Same situation in that the tenant was very responsible. They did negotiate to stay in the property through the end of July and that was fine. This is the letter:
We are writing to provide a formal Notice that our Lease Agreement with you (last updated through May 31, 2021) will terminate on July 15, 2022.
The lease is being terminated because we are selling the property. As such, you must vacate the property by end of day on July 15, 2022.
All other terms and obligations of the Lease shall remain in full force and effect through the Termination Date, including, but not limited to your obligation to schedule and move all of your belongings out of the unit by that date. Rent will continue to be due by the first of the month for June and half of the rent for July.
After full compliance with this Notice and the terms of your lease to leave the property in good repair, clean and vacant condition, we will return your Security Deposit to your new address. Remember that ALL personal items must be removed from the premises. We can conduct a move-out walkthrough with you, if you wish.
Thank you in advance for your understanding. We appreciate your care of the home and prompt rental payments. We wish you all the best in your future endeavors. We are happy to provide references for any future landlord.
Great Tenant - pls leave (by JBR [NC]) Posted on: Jul 14, 2022 8:56 PM
Responding with Mike Butler from Kentucky. I agree with you 100%. The simple savings of the real estate commission and all the closing costs that are tacked onto that that are usually paid by the seller would be a great benefit— to both of you.
Even in a hot real estate market buyers will ask sellers to pay closing costs. The market is slowing down and I understand you want to liquidate before the inevitable burst. And to do that I would— pardon the phrase —“shoehorn“ them into the property --69.132.xxx.xxx
Great Tenant - pls leave (by Dennis [IL]) Posted on: Jul 14, 2022 9:18 PM
I have recently received a letter from Diamond Equity Investments and they want to purchase one of my properties directly and "as is", vacant or occupied with paying tenant or non-paying tenant. This property is a 4-beds single family house with a family of tenant living there for 9 years. Every year I increased the rent (from beginning $1450 to now $1800). They pay the rent on time and take care of the repairs (when I pay for the material cost). So although I am planning to sell one of my properties each year from now on, I was not going to sell this house until I received this letter. Since Diamond Equity Investments wants this single family house and does not need me to vacant the house, I have made an appointment with them to let them to view the house. I will see whether this is a right decision, but I think this might be a solution for a house with "Great tenant" since you do not need them to leave. --98.35.xxx.xxx
Great Tenant - pls leave (by Shelley [NJ]) Posted on: Jul 15, 2022 7:01 AM
Raise the rent. That is how I was able to tenant to move and then sell my condo. --24.184.xxx.xxx
Great Tenant - pls leave (by L.J. [OH]) Posted on: Jul 15, 2022 8:13 AM
I would transfer them to another unit if I had one available. If not, I may see if another landlord in the area (that I trust and would treat them well) had anything that may work for them. Then, I would be honest with the tenants, so they know they are appreciated. --76.189.xxx.xx
Great Tenant - pls leave (by Steven [CO]) Posted on: Jul 15, 2022 8:45 AM
As I approached retirement. I started selling my rentals. I have a 15 year plan. Sold in no particular order. I advised all my tenants I was selling. I had three tenants buy the home they had rented. 25 year, 18 and 16 years respectively. I looked at no break in service, no lost rent over the years, minimal preventive maintenance and no realtor commission. 2 others, we went to a real estate attorney for the owner carry paperwork, and a private firm that handles all the paperwork, i.e., mortgage payments that included insurance and property taxes. It protects you and the tenant. My opinion, long term tenants put more money in your pocket then 1/2 year tenants. Share the wealth, help them purchase their home. Remember, it's your house, but it is there home. Now it is theirs permanently. --47.5.xx.xx
Great Tenant - pls leave (by GingerLou [GA]) Posted on: Jul 15, 2022 9:06 AM
This is such an interesting topic for discussion! I am not tempted to liquidate any of my properties, because I have not found a better place to stash savings than in real estate that you rent to others. I do have some properties that I have considered selling over the years, and one that I did sell a couple years ago (because it was outside the county in which I reside and in which ALL my other properties are located, in a different court system); I took the tax hit and used the remainder of the proceeds to pay off the mortgage on an apartment building I had purchased years prior. If I do sell any of my other rental properties, I would do a 10-31 Exchange to another property (or properties) and defer the tax burden. I would find it extremely hard to get rid of any of my good tenants, but maybe sometimes there are good reasons to do so. I agree with the person who suggested that you give your current good tenant first dibs at purchasing the property. The fact that they cannot quality or afford it is irrelevant. This puts them in the position of making the decision to move, not you. I would simply write them a letter (not tell them in person or on the phone) stating that the decision has been made to sell the property in which they reside and that you wanted to give them first opportunity to purchase the property. Also mention that, due to inflation and ever increases in expenses, you were going to have to significantly increase rents on all properties, unfortunately, and that was a part of the decision to sell the property. I'd give them at least a 60-day notice and apologize for any inconvenience, telling them how great tenants they have been and offer to assist them by giving them a glowing reference for any other property they find or a credit reference if they decide to purchase a property. I would not offer to pay for anything further. You may be surprised at what "hidden" damage you find once you take possession of the property and start to spruce it up. If you find that these tenants are all you think they are now at that time, you will have their forwarding address already to mail the refund of their security deposit, you can do as your heart leads you to give them a bonus (check, gift card, etc.) along with another nice letter about how you have so appreciated them over the years. Wishing you the best success! This has to be one of the hardest things, releasing a good tenant who does not want to move ... but there are many very hard things in this business for us LLs ... we are tough cookies; we can do it when necessary ... --99.110.xxx.xx
Great Tenant - pls leave (by Jerry Wimberly [TN]) Posted on: Jul 15, 2022 1:42 PM
You don't.just cash out refinance! --70.241.xxx.xx
Great Tenant - pls leave (by Jerry Kirschner [MI]) Posted on: Jul 16, 2022 3:24 AM
Why get rid of a good tenant? You stated that you just wanted to move on. Sounds like you may not actually need the money. Why not sell it to the tenant as a lease purchase at a market price or above. Tenant may not realize that they can actually "own" their own home. Might be able to give some credit for a portion of prior or future payments. Everybody wins here. --108.72.xx.xx
Great Tenant - pls leave (by BRAD 20,000 [IN]) Posted on: Jul 16, 2022 2:36 PM
Tyler, I still don't understand why so many LLs feel GUILTY and must offer discounts or rewards.
You provided a home for many years and acted as a good manager. She followed the lease and was a good "customer".
You do not owe her anything other than good will.
YOU are in charge of your investment and must make decisions based on your investment.
I'm not saying throw her to the street - be kind with a friendly business attitude - but you are not her friend and not her keeper. She KNOWS she is not the owner and might have to leave someday.
Being a good manager means making the difficult decisions.
Also, YOUR TIMING is VERY important. House sales are slowing due to inflation, etc. April and May are the hottest times to sell. Locally school starts in August so families CLOSE on or before July. Once school starts buyers disappear and don't wake up until Oct but them you face Thanksgiving.
I'm with Mike Butler - your FIRST CALL should be to offer the home to her. AS IS would save you a MOUNTAIN of selling headaches (Inspection, appraisals, commissions, realtors...)
"Mary, It's time to sell the house. Would you like to buy it?"
(I hire a legit appraiser to give me a real price on the home so I KNOW what it's worth and what a bank will support)
If she declines to buy I don't get into long letters. Short and sweet "Mary, I am selling the home so this is yoru 30 day notice to vacate."
Use your connections to help her find a new place. She might LOVE a new place! Her life may have changed and want a condo with no yard work and a pool. Who knows!
Great Tenant - pls leave (by BRAD 20,000 [IN]) Posted on: Jul 16, 2022 2:39 PM
AND consider sellign on LAND CONTRACT.
You already know she is a good payer.
YOU set the price and terms, and will earn doubel to triple the purchase price as interest on the contract.
No bank to fiddle with, no appraisers, not commission, no inspections...
PLUS in Indiana the property taxes will be cut in half or a third.
Great Tenant - pls leave (by Trish [FL]) Posted on: Jul 18, 2022 2:06 PM
I like you have been doing this for a long time and have thought about my exit strategies. For my good tenants, which are most if not all of them I would offer:
1. Help them buy the home through first-time buyer's programs, FHA or VA. Most sellers won't do that. I would even help with closing costs.
2. If they are unable to buy. I agree that moving them out and refreshing the property is the best way to go. You will get a higher price. I would give them at least 90 days. Why, because this allows them to get over the surprise of having to move, save up for the move, and find a place.
If you have been a landlord for a long time like me, we have made a ton of money (millions). This business has been great to me and others. I believe one must pay it forward. --72.239.xxx.xx