Dallas-Fort Worth Real Estate Investor Club

Tenant Not Letting Anyone Enter the Rental

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  • 20 Mar 2017 8:11 PM
    Message # 4679027

    Question for the experienced landlords: 

    I have a property under contract. The property has a tenant with a lease that is expiring at the end of May (60+ days). The tenant has given notice to the Fort Worth Housing Authority of her intent to vacate at end the end of the lease... That's all good but the issue we are having is that she will not let us see/inspect the inside of the home. We have notified Ft. Worth Housing of the issue but they obviously cant do much other than advise that all we need to do is place a letter on the door 24 hours prior to entry advising her of our intent to enter. (Seller needs to close ASAP). 

    Yes this property is such a steel that "due to circumstances" I put the property under contract without seeing the inside. At this point I've seen a lot of properties and numerous ugly, smelly, bug infested, moldy disgusting interiors that some would walk away from. I've fixed numerous like this and done ok doing so, therefore not to worried about what I find inside. The property is a 2007 build so to me it was worth the risk to go forward with the contract. To be safe I budgeted repairs for "worst case scenario" so I'm good either way.... and yes I can terminate the contract if needed.

    Here's the dilemma... The seller and current landlord do not have any keys to the property. Any advice regarding a method of entry? Common sense tells me to bring a locksmith to the property as any forced entry could possibly lead to something ugly/dangerous. The tenant has been given proper notice.

    I would like to hear how any/you experienced landlords would proceed with this situation. 

    Thanks in advance for your input as this is my first exposure to a scenario like this.

    Regards,

    Steve




  • 20 Mar 2017 10:05 PM
    Reply # 4679183 on 4679027
    Robin Carriger (Administrator)

    Disclaimer:  I'm not an attorney.  None of this is legal advice.  These are only my opinions.

    Any legal issues would seem to come down to what's written in the lease.  However, there's also the practical side of things.  If the tenant is physically refusing to allow lawful entry by the owner with proper notice, a physical confrontation would obviously NOT be desirable in any form.  So... here's my opinion.  Disallowing lawful entry by the owner/landlord is a violation of the lease.  If a tenant violates the lease, they can be evicted.  Going through an eviction, if the tenant insists on pushing it all the way through the entire process, can take a month or longer even with professionals handling it for you.

    If I were in this situation, I would 1) make sure proper documentation of the notice of entry has been given to the tenant, 2) attempt to enter, 3) if entry is denied, go to plan B.  My plan B would be to 1) extend the contract to a safe date, 2) offer to pay for the eviction (if necessary), and 3) begin the eviction process ASAP using an eviction pro who's familiar with all the little tricks certain savvy tenants know how to play (pauper's affidavit, etc.).

    Last modified: 20 Mar 2017 10:07 PM | Robin Carriger (Administrator)
  • 21 Mar 2017 2:34 AM
    Reply # 4679491 on 4679027
    Anonymous
    Favorite thing here is that Steve still took action by getting the house under contract regardless the situation he now has to overcome. Many brand new investors or lazy investors would have just walked away because it seemed impossible. I know that I would have just thrown the lead away when I first started out... Good Luck Steve!
  • 21 Mar 2017 7:09 AM
    Reply # 4679849 on 4679027
    Deleted user

    I just had a situation like this, but the tenant living in the sellers house had been living in the house for 6 1/2 years rent free, and thought that they were entitled to keep living there, even tho the seller wanted to sell the house. The difference was that I was able to actually see the inside of the house, and put it under contract. It was after that that reality set in for the "tenant" and they decided to start playing hardball and refused for me to have any further access to the property, and was refusing to leave. I told the seller that I would be happy to wait for them to get the eviction order, and wait for the process to take place, and then we could close after it was done. The seller didn't like that. He wanted to be done with this house and with the tenant living "mooching off of him" there. I told him that I would take the house now, and handle the eviction myself, but that we would need to renegotiate our price by $10,000 to cover any possible damage that might be caused by the free loader. He decided to offer her $4,000 for the keys and the problem was solved. We are closing today.

  • 21 Mar 2017 8:03 PM
    Reply # 4681499 on 4679027
    Deleted user
    Hi Steve, I hope you're doing well! 


    I'll preface this by asking for forgiveness regarding my ignorance on this topic. I have never dealt with a situation like this before. It sounds to me like you're prepared to see whatever is inside and the tenant has given notice... Is there a compelling reason why you need to see the property ASAP (i.e. if it's worse than you expect you'll back out of the deal)? 

    The above notwithstanding (if i'm reading/interpreting this correctly) my concern would be that anything you do will go to potentially cost you further $$ in potential damages to the property. If you force your way in, you have a mad tenant and face an altercation, if you evict, you have a mad tenant and face an altercation. If you're prepared to deal with what you may find, perhaps wait it out? 

    -Brian  

  • 22 Mar 2017 11:01 AM
    Reply # 4683242 on 4679027

    Thanks to each of you that replied! Robin special thanks for taking the time to provide the detail! That being said I have initiated a plan from the input I've received and will be carrying out the plan today. I'll be back to provide the details as well as the results of the plan as soon as the actions are complete. I'll comment further to the inquiries as well but for now I'll just move forward and take action - See you in a bit!

    Thanks All!!

    Steve

  • 22 Mar 2017 12:57 PM
    Reply # 4683422 on 4679027
    Deleted user

    Good luck buddy! 

    -Brian 

  • 26 Mar 2017 9:24 AM
    Reply # 4690794 on 4679027

    Conclusion to the tenant that would not respond to phone calls nor let me, as the buyer, inside the duplex to see her leased side of the duplex. Here's how I ultimately attained access to the duplex;

    The Ft Worth Housing Authority was notified of my intent to purchase. Fort Worth Hosing was also informed of the challenges I was having with the tenant. They were provided a copy of the receipted contract from seller along with "approval to enter and change locks."

    A 24 hour "Notice of Entry" for inspection and "Notice to Change Locks" was placed on the door of the duplex. The notice explained that the inspection would take place in between 2:00-6:00PM

    A locksmith was scheduled to meet me at the duplex on the next day at 5:00PM. The that tenant still was not returning calls or text messages after numerous repeated attempts between the time that we posted the 24hr notice and time of arrival 24hrs later.

    The plan was to open the duplex via locksmith, change locks, inspect duplex and take photos. We would then leave a lock-box with the new keys, on the doors for the tenant with direction for the tenant to call my contact number for the lockbox combination enabling her to attain the new keys.

    On the next day I met the locksmith and the end buyer at the property the next day (I was wholesaling this property)

    I was immediately greeted buy the adult son of the tenant with a group of characters lurking in the background. The son challenged me regarding my intent to inspect and change locks. I showed the son the inspection paperwork required by Ft Worth Housing Authority in order for her to remain on government assistance and relocate elsewhere with continued government assistance. The son wanted to know why we were changing locks and locking his mother out of the property. I explained that we are purchasing the property and must inspect the property. I also told him that we have been trying to contact his mother numerous different occasions repeatedly. I advised him that we are not on site to kick his mother out or lock her out of the duplex..... simply inspect!

    I communicated to him that I have been trying to contact his Mother repeatedly without any response. I told him that if she would of simply responded to my calls then there would not of been any communication issues. He played the "She does not speak any English" card. Little did he know that the day that I originally viewed the property prior to placing it under contract, I had a nice conversation with her in English. In fact she told me all the problems with the property, her intent to move as well as the history of the property....She even gave her phone number. I did not challenge his excuse, I just let it go.

    I once again explained to him that his Mother can stay until her notice to relocate and lease expires. All we are here to do is inspect and change locks as directed by seller. He acquiesced, we inspected and changed locks.  

    While inside we had a nice conversation with tenant, I introduced her to the end buyer as my partner in this transition. She was happy to hear that the end buyer was going to repair the issues within the duplex. I handed her two new keys. The end buyer and I left the property and closed the next day at Title office. Success!

    Thanks Robin, Israel, Aaron and Brian for your input/feedback! 

    This was a learning event for me, and as always, I continue to learn something new in this business on a daily basis. Thanks again!

    Steve


     

  • 26 Mar 2017 12:59 PM
    Reply # 4691127 on 4679027
    Deleted user

    That's great news Steve! 

    -Brian 

  • 26 Mar 2017 1:28 PM
    Reply # 4691139 on 4679027
    Deleted user

    That's great news! Glad that I could help in any way. God bless y'all and happy investing.

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