One And Done??
I leased optioned a home to a couple on July 22, 2003. They put down 3,000 for a down payment (NROC) and now I hear after one month that they have broken up and the male has moved out of state. I also hear that the home is sitting mostley vacent. I am on my way out there this morning. They are paid up through the end of August.
I have a term in my lease that says if the Lessee abandons or vacates the premises, Lessor may terminate this lease and regain lawful possession.
I have made attempts to contact both parties twice. The phone at the home has been disconnected.
I know it is a dumb question but should I go ahead and change the locks, or wait till the start of the new month and change them. I have to find a person to lease this home and fast to make the Sept payment. Talk about a move-in special!
Rob
Get the advise of your atty if you haven't investigted the eviction and relatedlaws in your state. That is something you should do if you haven't.
Dealing in a few different towns and counties I have found that Cities and Counties can have separate laws in addition to the state ones as well.
Best to be informed before you lease.
Did you try to contact the lessees at their place of work?
Hard to advise you on this matter.
Hey Rob,
I feel your pain. I say, learn from this and move on. The thing that you must learn from this is, there are no sure things in REI. You will just have to get in there and spot paint any areas that don't look nice and clean. Steam clean the carpets if needed. Just make it ready for the next tenant and write off these cost as part of doing business. For I can assure you that this will not be the last time something like this happen.
If the 3k move-in is too low to cover your loses, then you will just have to increase the move-in fee. How far away are you from the property? Both tenant could have moved out at the same time. Maybe you could have gone by and got started preparing the unit for the next tenant already. Changing the locks is something that I first thought was a must. However, the last two new tenant did not get a new set of locks. I base this on the type of tenant that last lived in the unit.
If you can change the locks yourself then you will only be out of maybe 85 dollars. But look to pay 285 if you have to call in someone to do this job. Last words, don't let this get to you, get stronger from what you learned from it.
Rob,
Just wanted to second the opinion of talking with your attorney first. Landlord/tenant laws are sticky things and you definitely don't want to do something that may take you longer to get the property back (such as change the locks illegally).
A good real estate attorney will be able to guide you thru the correct way to handle the situation for your area. Most likely, before you can legally reclaim the property, the court will have to decree something to that effect.
Roger
If they have paid through the end of August, they still have legal rights to the property.
Changing the locks is NOT A GOOD IDEA!!!
Maybe they'll keep on paying you? You never know and you shoudn't do anything until they miss a payment.
OF course, cofirm all of this with your attorney.
Hope This Helps!
Mrs. Meltzer
Also, what happened with the $3,000 down payments?
You should really keep that in an account for situations like these. Vacancies are almost a given with RE Investing and you have to prepare for it.
Hope This Helps!
Mrs. Meltzer
Take your time, and be patient is my advice. FIRST develop a detailed written strategy. For example: Call the references obtained on your application to determine an updated status, uncover last month’s list of interested parties and begin to contact them, contact your attorney for legal guidance and verification, call the local sheriff’s office for eviction procedures, contact your trusted realtor to begin preliminary listing agent agreements. Remember not to panic, your financial reserves should be established to cushion the portfolio for a few missed mortgage payments.
[addsig]
andersoninvestment,
"I leased optioned a home to a couple on July 22, 2003. They put down 3,000 for a down payment (NROC) and now I hear after one month that they have broken up and the male has moved out of state. I also hear that the home is sitting mostley vacent."
Check it out for YOURSELF...I see YouAre...
...if ThePhone, water and power are turned off and Furniture is gone....YOU ARE IN LUCK!
THIS IS GREAT!!!...you can do another DEAL!!!
TakePictures and change locks NOW...It's YOURS...
"I am on my way out there this morning. They are paid up through the end of August."
Good!!
"I have a term in my lease that says if the Lessee abandons or vacates the premises, Lessor may terminate this lease and regain lawful possession."
Good!!!
"I have made attempts to contact both parties twice. The phone at the home has been disconnected."
LookingGood!
"I know it is a dumb question but should I go ahead and change the locks, or wait till the start of the new month and change them."
SeeAbove...
"I have to find a person to lease this home and fast to make the Sept payment."
You do have the 3K....Right??
"Talk about a move-in special!"
Why??...L/O....just like You did before....
...unless...It'sTrashed!!
....as always,
GoodInvesting, Rocky
Rocky,
I love your style. You do it so simply and categorically that it really breaks it out and makes it simple for simple minds...thanks!
I know exactly what my attorney would advise me in a situation like this, and it's definitely NOT to go over there and change the locks right away, that could cause problems if things are not as they seem.
First, do as Rocky suggests, check the place out to see if it looks vacant, talk to the neighbors to find out what they've seen/heard. If everything indicates that the house is vacant...
Then you WRITE A LETTER to your T/B reminding them of the abandonment clause, and to contact you immediately as to whether they are still living there or not.
There may be some stipulated period that your state/city requires you to wait after sending a notice like this. If not, select some reasonable number of days, and if you don't hear from them...
Then, and ONLY if your attorney says you can, change the locks and line things up with your new T/B.
Of course, you can start contacting your buyers list and/or marketing the house right now. There's nothing that says you can't get that started just in case.
As someone mentioned, you never know, one of them could continue paying you, and this will all blow over as a misunderstanding. If not, great! You make more money by reselling the house!
Thanks for all the post. Went to the house and there is still some stuff there and electric is still on.
I also have a clause in my contracts saying I have the right to show "for lease" or "for sale" sings in the yard anytime I wish. So this is what I have done just to start lining up people.
Good, Anderson!!! It's now 9/9. Did they vacate? Or pay September's $$$??
HB