Many tenants don’t have an interest in maintaining rental property, even if this isn’t always part of the rental agreement, but it can cause frustration if maintenance is included but ultimately neglected. When the exterior starts to degrade like this, it can impact the property value and even which future tenants are interested in renting.
Rental agreements protect both tenants and landlords, providing each party with expectations as well as consequences for failing to follow through with those expectations. For one reason or another, some tenants struggle or decide not to uphold their side of the agreement.
SoldFast has experience with every side of property management, including those unfortunate situations where communication between the landlord and resident has broken down. Whether eviction is on the table or everyone involved is open to resolving things, our real estate professionals can help you make the best decision for moving forward.
Here’s how Nader helped the former property manager of this apartment building by purchasing the units and working to evict the problem tenants before starting renovations.
The Property Managers Were Struggling with a Few Tenants
In general, tenants and landlords can work with another without issue. These relationships can be simple and managed without confrontation. But sometimes, things devolve to the point where the landlord/seller needs to walk away.
Every landlord is nervous about is the potential for problem tenants, especially when they start negatively impacting other renters and the building altogether. There different options to mediate and/or resolve this, but they can be expensive and time-consuming, and in the meantime there’s a lot of frustration and negative emotions. Certain options like eviction are really only considered if the situation has deteriorated further.
Even if rent is appropriate and the units themselves are in otherwise good shape, a backlog of visible maintenance problems and the perception of the area may dissuade future tenants from considering the rental property entirely.
Details that contribute to this perception include:
- Visible loitering sign
- Litter
- Abandoned shopping cart
- Messy landscaping
- Maintenance tools like the ladder being left out
They Decided to Sell, and We Made the Decision to Evict
Because the property manager was tired of being a landlord and struggling with these tenants, they chose to sell to SoldFast. After we reviewed the situation in detail, we ultimately decided that eviction was the best course forward.
When Is Eviction Justified?
Even in situations where an eviction is legally permissible, it’s still a hard decision that could impact the current tenants. In these emotional situations, remember that tenants and landlords agree to maintain the property at certain standards. If a tenants’ actions are unlawful or hazardous, especially if this affects other tenants, eviction is a wise option.
Consider eviction proceedings (or selling to someone prepared to do so) if your tenants are engaging in any of the following:
- Open and/or repeat criminal activity
- Refusal to pay rent without claiming financial hardship
- Committing property damage
- Preventing residents from right to peaceful enjoyment
We Slowly Renovated Each Unit As it Became Available
SoldFast made the decision to start the process of evicting the existing tenants because there were issues of nonpayment and concerns of property conditions. Each unit was renovated as it became vacant, and over 213 days, all 6 units were renovated before being rented out at a more appropriate market rate.
On the interior, we put down LVP flooring and repainted all surfaces. These kinds of rental units often see high turnover and low personalization, making this kind of refresh ideal for balancing updates and ROI.
Outside, the front and rear deck/stairs weren’t looking their best. We ripped them out and started over, vastly improving safety and longevity. We also updated the electrical meter, another high-value project for these small rental buildings.
Investments into high quality utilities like water, natural gas and electricity is vital to maintain the building’s energy efficiency, which can have a major impact on the success of a rental property.
Evictions with HUD-Assisted Housing
When housing is organized by a governmental organization like HUD, special requirements may be in place to justify something like eviction. Documented proof of nonpayment/lease violations is needed, and the landlord must provide various written notice requirements throughout any eviction proceedings:
For example, landlords generally need to provide:
- A warrant or dispossessory affidavit, requesting a court return the property to the landlord. This warrant must provide the notice’s date and reasoning
- Sheriff service to deliver the warrant, or posted notice on the tenant’s door
- A writ of possession if the tenant does not provide the payment owed
Depending on your specific situation, other notices or requirements must be met. You should always review state law and local ordinances before beginning any eviction proceedings.
Now Things Are Ready for Future Tenants
The full suite of interior/exterior renovations along with the rate increase dramatically improved the value of property. While Nader ultimately decided to sell the property to friend, it’s now thriving as a successful rental unit (which Nader wishes he’d kept!)
This new exterior deck and stair project was especially important. The original wood was in rough shape, and safety was becoming a concern.
Trust SoldFast to Help You Leave These Worries Behind
Problem tenants can cause an enormous amount of stress. Your local SoldFast Operator has the experience with these kinds of rentals that you need. We know how to identify options for compromise, process eviction proceedings, and make the high value renovations a property needs to bounce back.
If you have a rental that’s turned into a dark cloud over your head, give SoldFast a call!
