Is Tenant Pulling a Fast one?

dowtchaboy

Am I paranoid or is this tenant up to something?

Friends inherited an apartment when their Dad died and would like to sell it. Place has an existing tenant who was paying rent OK until they indicated it was up for sale now that Dad's estate was sorted out. They are not greedy and would be quite happy to sell to this tenant who has been there some time and seems quite attached to it. Tenant made an initial low offer which they did not accept but made counter-offers. However tenant stopped paying rent (last May) "while negotiations for the purchase were going on", and now seems, they feel, to be less and less likely to finalise a price and complete the deal. I think they tried to come to an agreement where he could get back any rent paid from last May when the deal happens - but he want to play it this way.

He knows, I suspect, that they want to move on with their lives, sell the place, preferably to him, with as little hassle as possible.

My concern for them is this - if the tenant manages to get through an entire year without actually paying rent - has he now got 'squatter rights' or whatever the polite term is? Is this what he is up to? Or is he just playing a smart game and putting them under price pressure in a falling market?

My gut feel is that they should hit him without delay with legal proceedings. Be polite, fair but firm. I know though that they don't relish the thought of having to chase someone for payment, or evict him, or go looking for tenants or buyers.

What do you think? Is what their Dad left them (and he didn't leave much) in danger?

db.

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dowtchaboy wrote: »

My concern for them is this - if the tenant manages to get through an entire year without actually paying rent - has he now got 'squatter rights' or whatever the polite term is? Is this what he is up to? Or is he just playing a smart game and putting them under price pressure in a falling market?

If you pay rent even once you cannot claim squatters rights.

The moment he stopped paying rent he should have been served with eviction

DO0GLE

There's no reason why they should have stopped receiving rent in the first place. The longer this situation goes on, the better for the tenant....he's got a free stop at the moment. If I owned the apartment I'd put it on the open market if I wanted to sell it and be making sure I got my rent every month.

K_P

A person must be in a property 12 years with no contact from the owners and no attempts to remove them before they can even begin to claim squatters rights. The payment of rent also disqualifies them.

So this tenant, while being awkward, cannot try that route.

bugler

Why, oh why, did they stop paying rent?

It makes no sense. Play it softly with the tenant and attempt to recoup the rent. If it succeeds (and I suspect it won't), then serve them their notice as the house is being sold.

I'm not sure where it would stand if you just wanted rid of the tenant on grounds of not paying rent. Certainly you can serve eviction on shorter notice, but if suspending rent was mutually agreed....

antoinolachtnai

Ask for immediate payment of arrears. If you don't get it immediately (say within 3 days), serve eviction notice on the tenant citing non-payment of rent. Make sure to follow the letter of the law in respect of the notice. You can always withdraw the notice if he comes up with the cash during the notice period.

He is just taking advantage of your friends. There is no reason for him not to pay his rent. Do not negotiate the sale of the property with him until he has paid the rent.

He may damage the property and if he does, there's not much can be done about it. Your friends should be sure they are registered with PRTB before this all gets underway.