- Joined
- Nov 11, 2010
- Messages
- 8
Hi All,
I am having an issue with my Rent to Own tenants. Here is the current situation:
Any help on this matter is greatly appreciated.
Regards,
-Alain (former REIN member)
I am having an issue with my Rent to Own tenants. Here is the current situation:
- Lease and Option Agreements are in both parties names.
- There has been a breakdown in the relationship.
- Agreement is on a suited house, where one is now living in the suite and the other is upstairs.
- Tenants are facing eviction due to material breach of several terms of the Lease Agreement (and the Option Agreement).
- Rental Payments: repeated late payments
- Alterations: Locks replaced but keys not provided to landlord
- Pets: added cat and dog to existing 2 dogs allowed
- Landscaping: yard and gardens in bad shape
- Appearance: hoarding, blankets on windows, very dirty carpets
- Conduct: domestic disturbance/violence
- I have offered the tenants two months to correct the breach (due July 30, 2015).
- Male tenant is paying all the rent, (including his option deposit), while female is living upstairs for free.
- Male has completed his portion of the clean up, however, upstairs is still a mess. Female is not cooperating as she has nothing to lose.
- Male is going through legal means to remove female from the Agreements so he can continue with the Rent to Own program.
- I've suggested that the tenants exercise their option to purchase early, rather than wait another 2 years when the option expires.
- At this point we are continuing with the eviction so that they both have to move out. Tenant will lose all rent credits and option deposit if they get evicted, per Option Agreement.
- If the male tenant executes his option, he will inherit the female tenant as per Lease Agreement.
- Will I get in trouble, if upon eviction, by selling the house (per regular RE Purchase contract) to the male tenant for the future amount per the original option agreement ($390,000), less the option deposit and rent credits ($20,000) for a total of $370,000?
- Will the male have to vacate the premises after eviction and prior to Completion Date?
Any help on this matter is greatly appreciated.
Regards,
-Alain (former REIN member)