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Compassion or Eviction?

By
Real Estate Agent with Home Sales Palm Beach SL3246893

We've all been there. On the fence of trying to buy the story of a non paying tenant. So here I am again with 2 tenant occupied listings and I'm told one tenant has stopped paying, but wants to purchase his unit. I called and had a nice conversation with him. He seemed sincere and motivated to move forward with getting qualified for a mortgage. Made the introduction to my lender and then he disappeared.

Once again, I fell for a stall tactic. But wait, that's what the tenant thinks. I put it on the line that the home would be listed for sale on a specific date and if he didn't initiate financing he would be moving. His lease is up. He's not paying. 

He tried crying the medical blues to me. Not sure where he's going, other than bye bye as I immediately contacted my attorney to start eviction proceedings. Tenant is unaware of my movement. Communication is the key to keeping me happy, and he killed that. I told him that if he wanted to stay in his home he could promptly submit his monthly rent to the heirs of the estate and we would keep him on a month to month agreement.

I'm sure there will be drama with showings, so this eviction can't happen soon enough. And although there is a 24 hour notification period, I can guarantee he'll have a last minute reason not to allow showings in to preview the unit. He'll change the locks, not answer his phone. All the tricks. Been there, done that. I only pray that he doesn't destroy the property in the interim. There have been code violations, HOA fines all brought upon by the tenant operating a business out of the property.

I'm delaying activating the listing because there's no way this will sell without major drama. So now I wait for the attorney to move. Too bad for the tenant, because my attorney is fast and effective. 

I spoke to the other tenant who has a valid lease through next January and has been paying rent in a timely manner. They decided against purchasing. I put them at ease and said I would be marketing their home as an investment property with excellent tenants. No showings would be confirmed unless the potential buyers were prequalified or had proof of funds to close. This tenant was grateful that I would be giving them 24 hours notice and not majorly disrupt their lives. I'm thankful as well! Working together, transparently is the optimal way to initiate a smooth real estate transaction.

I'd love to hear your experiences with tenant occupied listings! 

Comments (13)

Lauren Laski
VantaSure Realty - Parkland, FL
Peace, Love and Real Estate

Hey Denise,
I like you're handling this. It's business, not personal. I hope it works out quickly and smoothly for you. I'll check back to see

Sep 19, 2017 11:00 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

My experience was so bad that I no longer do it.  I'll take the listing with the understand that it does in the MLS the day the tenant is out.  Not going back on this policy. EVER. 

Sep 19, 2017 05:01 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I have had 2 and both went well but only due to excellent tenants, who were moving anyway. I have shown a lot of homes, with some difficulty in many cases, that were tenanted and based on that experience, and others I have talked with I would probably avoid listing a property with tenants until they were out. There are so many issues to deal with potentially. But the right land/tenant condo could be OK. You just don't know how it will go.

Jeff

Sep 19, 2017 06:22 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck.

Sep 20, 2017 04:45 AM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Compassion only can go so far, then duty takes over.

I make it a point to incentivise the tenants for accommodating showings, keep the home clean and not talk trash about landlords, is to offer them some fianncial benefit each time they allow their home to be shown.

Sep 20, 2017 04:57 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

At some point, it's business... and you can't ever forget that. You are not running a charity.

Sep 20, 2017 05:11 AM
Rick Frissell
HomeXpress Realty - Valrico, FL
aka "The Red Baron of Real Estate"

Great Blog title Denise Samouilidis .  Just dealt with that issue this past Friday.  In this case, went with "compassion," but for business reasons.  The tenant owned nothing of value, but as he said, it was everything he owned in the world.   The cost to remove his, of little value, would have cost my client up to $1000 or more.  The deal we made was the weekend for returning completely empty.  Went there Monday and sure enough, saved my client some bucks.

Sep 20, 2017 07:38 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Denise. I marketed, listed and sold, and owned investment properties. I found that care up front mattered. I was good to tenants and it was usually reciprocated.

Sep 20, 2017 08:33 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

I have had several landlords offer the tenants a rent reduction through the listing period. I always offer overnight notice, not always 24 hours, and am always available if they want to contact me. As you say, it is all about communication. Works both ways.

Sep 20, 2017 09:46 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

I can only imagine what a headache this has to be. Best of luck for a smooth eviction. That's not something I say often. LOL

Sep 21, 2017 04:15 AM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Working with people who are trying to get into a better situation can be difficult at times.

Working with people who are not trying leads to big problems.

I think you have sorted out well how to handle each situation.

Thanks for sharing.

Sep 21, 2017 06:41 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

A tenant can be, cooperative or a fly in the room (that bugs) or the 800 pound gorilla having their way. You will know all you have to know when contact is made. The problem lies in not taking precise action and doubting to do so

Sep 21, 2017 07:25 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

The challenge is NOT to have such tenants and that begins with a firm policy and process to qualify tenants. Best to wait until the tenant moves before listing the property for a smooth and stress-free transition. 

Sep 22, 2017 10:02 AM