Inheriting Smoking Tenants

[thoyem]

I have an associate that bought a house with inherited tenants.( I know bad idea already).
She does not like like their smoking in her place. I assume their is some assumption or continuation of previous conditions even if leases were verbal. She wants to establish new leases that prohibit smoking.
I can see them not agreeing and all moving out, leaving her with no cash flow for a while.
I am trying to help her out. Should we tread gently and keep them all happy? or should we push to have them smoke outside?? The place cash flows like crazy, annual yield 10.5%.

Any comments you have as to legalities of this situation are welcome.

Thank you

Todd Hoyem

 

[brad]

If that tenant leaves, I`m sure his/her unit will have to be thoroughly cleaned. Why not allow him/her to continue smoking and then have the next tenant sign a lease that states no smoking. You could be risking losing a good paying tenant because you don`t want them to smoke. Remember, you aren`t living there, and smokers help pay the bills just as non-smokers do. Yes, I understand the damage that smoke does, but the damage will already be done and I don`t see the point of losing a good tenant (inherited at that) only to now have to deal with his/her mess prematurely.

Just my 2 cents.

Brad Hamilton

 

[EdRenkema]

QUOTE (brad @ Dec 5 2008, 06:38 AM) If that tenant leaves, I`m sure his/her unit will have to be thoroughly cleaned. Why not allow him/her to continue smoking and then have the next tenant sign a lease that states no smoking. You could be risking losing a good paying tenant because you don`t want them to smoke. Remember, you aren`t living there, and smokers help pay the bills just as non-smokers do. Yes, I understand the damage that smoke does, but the damage will already be done and I don`t see the point of losing a good tenant (inherited at that) only to now have to deal with his/her mess prematurely.
Just my 2 cents.

Brad Hamilton

Very good point Brad, however I looked at a multifamily with 5 apartments - all heavy smokers. No FA heat, just hot water so benefit there. Still a problem when you move out a smoking tenant, you`re looking at 1 month vacancy minimum since you could never show the place to a non-smoker while the smoker was still living there, the smell would drive them out, they would simply move on to the next place. So you see to transition out the smokers you`re looking at cleaning/repainting, new broadloom plus the inevitable vacancy. The only solution is to price that into the analysis.

 

[DaveRhydderch]

I agree with what I`m hearing. You can`t teach a new dog old tricks, and this tenants are not going to stop smoking inside now that they`ve been allowed.

I don`t necessarily agree though that you will have a one month vacancy. When they plan on moving out, get cleaners in there immediately and do the best you can to cover up the smell. This could include spraying before potential tenants view the place. Then, after the smoking tenants move out have the industrial strength carpet cleaners come in. Its expensive, but better than losing a months rent.

 

[Kimberly]

I purchased a single family home, that was listed for awhile, most likely due to a heavy smoke smell. I got a great deal. I looked into different processes to get rid of the smoke smell.

What worked? I hired a company that brought in an air ionizer, and after leaving their machine in the home overnight for 24 hours, the smell was totally gone. The process does leave a `javex` like smell in the home that dissipates after 1 week or so. The machine does not use any liquids, it sends ions in the air which interacts with any and all odors in the home - including mold, smoking, animal ordors, paint smell etc. You can`t have anything that`s alive in the house while it`s being ionized, like plants, animals, people. The company guaranteed its work and would return if the smell reappeared. There was no need to call them back. For $200 I would highly recommend it.

 

[brad]

I have never heard of an ionizer, thank you for sharing that.

Brad

 

[realfortin]

QUOTE (EdRenkema @ Dec 5 2008, 10:12 AM) Very good point Brad, however I looked at a multifamily with 5 apartments - all heavy smokers. No FA heat, just hot water so benefit there. Still a problem when you move out a smoking tenant, you`re looking at 1 month vacancy minimum since you could never show the place to a non-smoker while the smoker was still living there, the smell would drive them out, they would simply move on to the next place. So you see to transition out the smokers you`re looking at cleaning/repainting, new broadloom plus the inevitable vacancy. The only solution is to price that into the analysis.

I would agree with the statement that you must price in a month long vacancy. That is not unusual anyways and a 8% vacancy rate in your calculation covers that. The upside is if you clean/replace the carpets and repaint the week after the old tenants move out you will have 3 weeks to show a FRESH, updated suite and have the time to choose good quality tenants. I`d rahter have my apartment vacant for a month than rush to fill it with the 1st tenant that can offer to move in the day after the old tenants move out. I see a vacant apartment as an opportunity. Clean, refresh, renovate, raise the rent and get a quality tenant.

I currently have a tenant that is a super smoker. I inherited the tenant and I can`t wait for her to leave. The rent is way too low, she has caused smoking damage to the bathroom (burn marks all over the countertops, tar residue all over). The second she moves out I intend on getting a cute little bathroom vanity (ugh I said cute), new paint job, get rid of the ghetto appliances and hike the rent up 25%. I wish Ontario allowed a damager deposit, there is no way I can recover the cost of this from her. <sigh>

RF