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How to evict a none paying rent to own tenant

Discussion in 'General Discussion' started by An Tay Nguy, Jan 5, 2018.

  1. An Tay Nguy
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    An Tay Nguy New Forum Member Registered

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    Hi everyone,

    I used to be with REIN for over 10 years. This is the first time I've ever run into a None paying rent to own tenant that I cannot workout something out with and seeking help with anyone who has gone through this process before.

    I used took Barry's Quick Turns and have been using his contracts without any problem until now. I am not sure what the best course of action would be. I have gone through the NORMAL RTDRS eviction process numerous times over the years for normal renters but I have never have to deal with Rent to own tenants before as it was easy to workout something with them but not this tenant.

    I have been using separate documents for the lease and option as per Barry's documents. Should I try the RTDRS or will they just going to through it out because it is a Rent to own?

    Should I use a lawyer for this?
    I just wanted to know what is best course of action?

    Thanks in advance everyone.

    An Tay
     
  2. ThomasBeyer
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    ThomasBeyer Senior Forum Member REIN Member

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    My understanding of RTOs is that there always are (or ought to be) TWO contracts: one is a normal lease and the other an option to purchase agreement. The lease is enforceable via RTDRS. Of course the tenant will make an argument he is actually an owner, and RTDRS might kick it up to the normal court of Queens bench. Might. Not necessarily will.

    The tenant is in breach of the lease and the option agreement presumably ?

    Did you go to RTDRS yet?
     
    Last edited: Jan 6, 2018
  3. YESMAN
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    YESMAN REALTOR Investor & Entrepreneur REIN Member

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    Yes what Thomas said must do 2 contracts


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  4. An Tay Nguy
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    An Tay Nguy New Forum Member Registered

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    Yes, I have two contracts one is the lease and the other is the Option. I have not tried the RTDRS yet because I was afraid that they would not look at it and I have to Queen's bench.
    I will still try the negotiate method first then try the RTDRS. I will post update as soon as I have them. But in the mean time, if anyone has gone through evicting rent to own tenants, I would like to hear your stories.

    Thanks!

    An Tay
     
  5. ThomasBeyer
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    ThomasBeyer Senior Forum Member REIN Member

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    What did TB ( tenant buyer ) say re default ?

    Assuming no or just BS answers and no hope to buy, and lease default in any case, go to RTDRS immediately with lease and ask for possession. See what happens.
     
    Last edited: Jan 6, 2018
  6. nsalama
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    nsalama New Forum Member REIN Member

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    I agree with Thomas. They are tenants until they exercise their option to purchase. I'd start the eviction process.

    Sent from my STV100-2 using myREINspace mobile app
     
  7. ThomasBeyer
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    ThomasBeyer Senior Forum Member REIN Member

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    How big was the initial non-refundable option deposit? You can always offer them some of it back, in cash, if they move out by Jan 15, for example.


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  8. An Tay Nguy
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    An Tay Nguy New Forum Member Registered

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    Not big, only 5K.

    Thanks!

    An Tay
     
  9. ThomasBeyer
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    ThomasBeyer Senior Forum Member REIN Member

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    Yeah that is far too low. A typical rookie mistake. Evict the guy. Worst case is you owe him $5000 too.
     
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  10. An Tay Nguy
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    An Tay Nguy New Forum Member Registered

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    Absolutely a rookie mistake. Done it out of desperation. Thanks Thomas.

    An Tay
     
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  11. Sherilynn
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    Sherilynn Senior Forum Member REIN Member

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    Definitely worth trying the RTDRS. The only way the option comes in to play is if the tenant attends the hearing and makes a fuss about it, but there's a good chance the tenant won't show up at the hearing anyway.

    First I would chat with the tenant and make it clear you will need to file an application at the RTDRS if he doesn't pay within your given timeframe. Tell him you want to work with him and you want to see him buy the property, but in the case of non-payment of rent (or other breach of contract) you must take action.

    You may also want to try a "consent judgment." This is when you work out a payment plan with the tenant, write it and both sign it, and take it with you to the RTDRS hearing. The plan will stipulate if the tenants do not adhere to the plan, they relinquish all rights to the property and must leave as per the RTDRS judgment.

    The RTDRS will read the payment plan into their official record and ratify the plan. They will issue an order stipulating the terms of the tenant's eviction if the tenant doesn't adhere to the plan.
     
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  12. nsalama
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    nsalama New Forum Member REIN Member

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