Benefits of Owner Carry Installment Sales on Apartment Buildings
Enter your text here…
Read MoreHave you ever had a tenant leave in the middle of the night or the middle of an eviction? Did you ever wonder what to do when the tenant abandons the property?
Basically, when a tenant abandons the property, you do not need to file an eviction or wait for the sheriff. You can change the locks. As for the tenant’s stuff, in some states, you can simply toss it. You should check your state or local law to see what your legal obligation is to store the items for the tenant.
It’s important to make sure you have your lease in place and all of your ducks in a row. For more information on Rental Properties click here.
HOWEVER…
If you are not certain whether the tenant has abandoned the property, you should not change the locks. If you have the keys and your lease allows it, you could enter the premises, but KNOCK FIRST. Whether or not the tenant has abandoned is often a judgment call, looking at a combination of factors, such as:
Even if the tenant is not sleeping there, they are still “in possession” if they have their personal belongings in the unit and have not shown an intent to abandon these items.
Some states have specific laws regarding PRESUMPTIONS of abandonment. For example, Connecticut law states:
Sec. 47a–11b. Abandonment of unit by occupants. Landlord’s remedies.
(a) For the purposes of this section, “abandonment” means the occupants have vacated the premises without notice to the landlord and do not intend to return, which intention may be evidenced by the removal of the occupants or their agent of substantially all of their possessions and personal effects from the premises and either (1) nonpayment of rent for more than two months or (2) an express statement by the occupants that they do not intend to occupy the premises after a specified date.
If you do intend to claim abandonment, take pictures, gather evidence and cover all bases to prepare for a possible wrongful lockout claim. Definitely, give the tenant notice in writing where you have stored their stuff (if you have anything) and give them adequate time to come get it. If you have ANY doubts, call your landlord–tenant attorney and do the proper legal eviction proceeding.
Or, here’s another possibility…
PAY THE TENANTS TO LEAVE!!
If the tenant has NOT abandoned, or you aren’t sure, or you messed up and they are coming back for their stuff, you should consider giving “Cash for Keys” to bribe the tenant to give up possession. While not deserving if they are behind on rent, it is smart BUSINESS because you avoid an eviction and possible damage to the property by the tenant. If you DO this, however, make CERTAIN you get the tenant to sign a RELEASE OF LIABILITY FORM. This form, when signed by the tenant, will waive their rights to sue you for ANYTHING (even if you messed up and they have a claim).
Download this FREE eBook, "Creating Cash Flow with Small Apartments". It will show you how to investing in small apartments (5 - 50 units) to generate wealth, equity, cash flow, and long-term retirement security.
Share this article
Enter your text here…
Read MorePodcast: Play in new window | Download
Subscribe: RSS
Read MoreFinding a contractor that is honest and reliable is a tough, but crucial part of your real estate business. Here are some tips for finding that “Golden Nugget” of a contractor. Referrals This is the most obvious and easiest way to find contractors. Try to secure referrals from investors and friends; somebody you know and trust who
Read More