Last week we received the sad news that our favourite tenant is dying. He has between 1 - 3 years.
We have had this tenant in one of our basement suites for over 4 years, and he is the only tenant whom we have ever considered a friend. He was planning to lease-option the property if we ever decided to sell.
We have already taken him a gift (something we know he likes that is worth about $100) and have offered our assistance in any way.
Money is tight for him because he has had to miss some work, but he has refused a rental reduction for this month. (He is that great of a tenant.)
Can anyone think of anything else we could or should do?
Playing it by the ear is probably the best route considering the circumstances and be there when he asks for help. There is really nothing you can do to help as you don't know what is BEST for him.
I have dealt with numerous long term tenants dying. I also have one tenant dying at this time, possibly two, and have found that the best approach as a landlord is simply to keep my distance. Considering he has 1-3 years I would at this time not consider his impending death a issue for me as a landlord. This is a time in their life when family and "close" friends will step in and frankly a landlord has no place in the situation.
As far as rent and other tenant responsibilities are concerned the situation should remain status quo in your relationship. If he is unable to pay the rent he will move as would any tenant. Simply because you have become friendly does not require you to adjust your business practices. Be careful you do not cross a fine line.
Now is the time to maintain a professional relationship as the personal pressure on the tenant will strain all aspects of the individuals life. Family members will view you as a outsider.
Although tenants may often appear friendly with landlords the fact remains that we are only viewed as landlords not friends. Don't delude yourself into believing there is any more to your relationship at this trying time in your tenants life.
Primarily you need to be preparing for the approaching vacancy and contacting your tenant to determine his plans regarding the rental. Sooner rather than later. Is it his intention to vacate prior to his death, will he be making plans to provide you the legal notice, what are the specific regulations in your provincial tenancy board to deal with the issue. In the event he passes while still a tenant who will he be assigning to manage the responsibility of the rental unit etc. He will likely be appreciative of a no nonsense professional approach on your part as opposed to charity. He will have affairs to resolve in his life you are simply one of them.
Being a friend, if that is in fact how he perceives you, is a separate issue entirely and has no bearing on your landlord/tenant relationship. In that regard he is no different than any other tenant.
I have drawn these conclusions from numerous first hand experiences involving tenants some of whom I have known very well.
Although tenants may often appear friendly with landlords the fact remains that we are only viewed as landlords not friends. Don't delude yourself into believing there is any more to your relationship at this trying time in your tenants life.
While I agree almost completely with all that you have said, I think you have underestimated the relationship that we have with this tenant. It is not quite a normal landlord-tenant relationship. And I assure you that I am not delusional (mostly). : )
What you have provided is good business advice, and I thank you for that.
I can appreciate what you are saying (been there,done that) which means you should have two distinctly separate relationships with this tenant. One being personal the other being business. Hopefully your personal relationship will assist you with your business relationship however your business relationship has no obligation or responsibility to consider his present medical condition.
You have entered into a realm of this business which is best avoided by the serious investor. Tenant/landlord relations are best kept impersonal for all involved.
I have found that becoming friends with tenants can not only interfere with rational business decisions it also tends to end badly when any situation arises wherein business interests must be placed first. You may soon face this situation.
[quote user=invst4profit] Hopefully your personal relationship will assist you with your business relationship however your business relationship has no obligation or responsibility to consider his present medical condition.
Agreed.
Normally I would never want to be friends with a tenant. That friendship would end pretty quickly if I must evict. We have had several tenants mention inviting us for BBQ's, etc., and we always respond with something akin to: "Yes, let's do lunch."
I must say this has been a rare exception. And this tenant is very careful about keeping our business and personal relationships separate, which makes it all the more exceptional.
We will have to wait and see what happens as far as when would be an appropriate time for him to vacate. I think that accomodating him as much as possible in that regard is something I will be able to do for him. Unfortunately he has no family in Alberta except for his ex-wife and son.
My present situation is some what different in that my tenant actually has a very strong dislike of me. This is of little concern to me but does make communication difficult. Knowing of his feelings for me I have avoided any contact since being informed of his condition. I do not need to add stress to his life as long as his rent keeps getting paid.
My understanding is he will most likely die before the end of the year and when he does I will need to communicate with whom ever takes responsibility for disposing of his home. That is always a issue in a land lease community but becoming old hat for me as he will be my 7th tenant to die in 4 years.
Aside from the pragmatic advise offered, doing a little research and providing your tenant/friend information over a cup of coffee on affordable assisted living accomodations, DATS transportation, etc. may be beneficial as their condition progresses and finances tighten. This information is not always shared by the health practitioners they visit at this stage. I'm sure they'ld appreciate the concern and feel like an appreciated customer versus receiving hand outs or the cold shoulder.
