Owner Has A Problem With My Tenant
I recently lease optioned a property. I haven't taken possesion yet, as the owner is in the process of moving out.
As luck would have it, someone at church heard I had this home available and recommended a tenant buyer.
The tenant buyer loved it. But they run a "half way" house. I have been to one of their current houses and it is in great shape. they do however house several people to a room
The owner heard about this proposed tenant buyer (not from me) and has left me a phone message as to their unhappiness.
What are my options? Should I just roll on to a more "normal" tenant buyer?
Suggestions?
Thanks,
GA_John
No offense, but unless you want to be a schister and screw over the people who lease option their houses to you, you need to take some basic landlording classes. These classes will cover how to screen prospective tenants, how to manage tenants, keeping houses in good repair, how to solve problem, situations to avoid, etc.
Half way houses will have much more wear, there will be many transient people coming and going (neighbors will love this, and believe me they will love to tell the owners), and the liability issues could be huge. Running a half way house probably invalidates the owners insurance. BTW - did the owners change their policy to a landlord policy? They will not be covered if there is a claim and the policy is still a home owners policy.
Let me put it this way - if you were going away for the summer, would you let them stay at your house?
BG,
Thanks for the feedback. I had already come to the conclusion that the owner and I are "partners" of sorts. There concerns are justified and at the end of the day, I can get another TB just as easy.
So, I kindly, but gently told the half way house that this wasn't going to work out.
The owner is still happy with me which is still leaving me with about $20,000 built in profit even if I sold it today and I can rent it to someone else for $300+ monthly profit.
It just wasn't worth the hassle.
Once again, thanks for the input.
GA_John
In order to place a half-way house in the neighborhood would probably require a zoning change/variance. It would also require the approval of the neighbors,not likely to happen. Stick with a traditional tenant.
John, that's a good way of looking at it. You guys are partners - I think you made a good choice
With that kind of equity locked up I don't think it' a good idea to get on the owner's bad side.