I believe the beast and easy way is to negotiate with the tenants.
1- offer them that you will pay their moving expenses if they cooperate with you and move out.
2- told them that you have a right to start the eviction process against them and it will affect all of them for the next place they would like to rent plus the judge may place a judgment against all rent due.
But you have a common issue, I don't know why tenants act like that, and every day people is careless about credit, records and evictions affecting their credits.
My suggestion is ask them to move out immediately and offer them money or start the eviction process.
Remember you cannot harass them, cut their bills or access the property without their consent.
Also seek for legal advise. they may assist you and tell you what to do.
this is what I actually do with my costumers if it doesn't work. we proceed with attorneys and always remember after the eviction you need to place the judgment. which is the amount due on the rent.
You should also put the tenant on notice that as per their lease (atty can help with the wording), they are required to return the property in the condition it was given, and failure to do that may result in civil or criminal action. There is an increasing trend on the part of landlords and REO Banks to pursue owners and/or tenants who steal from properties they are vacating, or vandalize the property. If possible, get someone to photograph the vehicles in front of the house, showing the license tag numbers, so you can build a case if the need arises.
If you do have to evict them, your bank may be willing to extend a week or so to get them out. If you initiate the action, the buyer may be willling to close, and take over the problem.
One other option would be to offer them some money to vacate. S
I'm not knowledgeable about Florida law, but banks have found honey works better than vinager. You can pursue eviction, which may take more time than you have. You can also entice them with a benefit. I realize that since you are doing a short sale, you probably don't have funds available to offer cash for keys, but perhaps your agent, the buyer's agent or the buyer or all of you together may come up with a reason and a place for these folks to go.
Cash may work, finding another home for them may work, offering a moving truck or movers may work. It's not fair and you shouldn't have to bribe people to abide with their agreements, but if they don't leave, you may not close and all involved are out.
Bottom line; pursue tracks, legal eviction and acceptable incentive. Let us know how it goes.
And you thought the tough part was getting the contract and short sale approved? We are finding renters who actively seek out properties in foreclosure/short sale specifically so they can be delinquent in their rental payments. They figure the owners are already strapped for cash and most likely will not spend the $$$ required to file an eviction notice. You can try to negotiate "cash for keys" where you pay the renter if he vacates the property. If this does not work, then discuss this with the buyer. If the buyer is getting a really good deal then he may not mind assuming the liability of evicting the tenant after the closing or may agree to split the expense of eviction with you. Otherwise, start the eviction process as soon as possible and get them out. Please fell free to contact me if you need any more info.
Jose I. Gonzalez PA
If a tenant is not paying his rent the landlord is entitled to file for eviction-However that takes time! usually more than 3 weeks (easily).
Have you spoken to the tenant? Do they realise if an eviction is filed and on their name/record it follows them for a verry long time!? Can you come to terms with the tenant? Forgive that month's rent in exchange for moving out AND not filing for eviction?
You should always consult your attorney for legal advice.
Before you show up and sign at the closing table, make sure you do not end up with a huge IRS debt on your "rental property" debt forgiveness.
You see, on a short sale if the lender forgives you the debt they will likely issue a form 1099 to you and the IRS and you will have to include that amount as ordinary income and pay federal income taxes. Let's say you have a $100k forgiveness, you could end up owing more than $25k to the IRS! So seek advice of a CPA or Tax Attorney before you sign.
Additionally if you are not specifically forgiven "in writing" on the loss then the lenders can allow the short sale and then file a judgement against you and collect 100% of their loss.
If this were your primary residence you may be able to get an exemption from including the amount forgiven on the 1099. If this has always been an investment property and you haven't used that address as your residence on your tax returns, you could end up with a significant tax liability. Oh and if you're planning to file for bankruptcy... you cannot go bankrupt on the IRS unless it's been about 3 years since you filed your return.
Please seek advise from an attorney and CPA before signing.
Hope this helps.
All the best,
Unfortunately, the current real estate market now has a lot more hurdles than there were a few short years ago. Your particular situation is not uncommon these days, as many homeowners that are in foreclosure have rented out their homes, and then have to deal with a tenant that may or may not be cooperative. Even when a tenant knows the home is in foreclosure, they somehow hold on to hope that the process of foreclosure will take longer to get resolved. The short notice to move does present a problem for tenants these days, as rentals are not easy to come by due to the amount of homes in foreclosure. There are also tenants out there that have been caught up in the foreclosure process, not knowing the owners were in default on their mortgages, and then find themselves having to scramble to move before they are evicted, not to mention, losing their rental deposits. Unfortunately, when you rented your home, you were running the risk that this would be a possibility, even though as you indicate you fully disclosed this to the tenant. You will definitely want to seek an attorney that can handle this for you , so that you get this resolved just as quickly as possible. You may also wish to alert you lender that you have run into this situation, and that you will need an extension to get the sale of the home closed. Good luck.
remember that every notification or notification you should documented so you can have proof that at the court.
Also remember that you need to proof that you deliver the 3 day notice (mail certified, or picture with the document)
If you have made the request for them to vacate - make it in writing and personally deliver, post on the door, or certified receipt the letter. If they do not vacate you may file a complaint (I suggest using an attorney) - once they are served they will have to respond or they can be evicted.
If you wish to use the fact that they are not paying as your reason to vacate - this may be quicker - send in writing a 3 day notice and personally deliver, post to door, or certified receipt. If they do not vacate or pay you by the 3rd full business day from receipt of the notice - you may have to add up to 5 days to your timeline for mail and if you post it you have to make sure they pick it up and start the day count from the time they pick-up the notice. Most tenants do not want an eviction on their credit report and should leave at the 3 day notice. If they do not vacate file a complaint for eviction (I suggest using an attorney).
The 3 day notice to quit or pay rent posted on the front door may be just enough to get them to move out.
You may want to suggest that an eviction on their credit report is also not a good thing. Also I believe if you get an eviction you can also get a judgement against them and attach their wages. May be worth paying an attorney a minimal fee to write them a threatening letter.
Alternatively if the buyer is getting a spectacular deal on the short sale (by the way, don't sign at closing unless you get specific wording in writing that you are forgiven the loss) then tell them it is their problem to evict the tenant. The lenders can get a judgement and go after you for 100% of their loss including attorney fees, late fees, legal costs, etc. so make sure your approval letter specifically says you are forgiven the loss.
One other problem is if you converted your primary residence to a rental property, you could have a significant IRS Tax liability if the lender decides to forgive you the loss. The amount of the loss will be reported to the IRS on a 1099 form and you will have to include that amount as "ordinary income" and pay income tax! If you're being forgiven $100k, you could easily end up with a $30k tax bill!
Hire a CPA to advise before you go to the closing table. You may actually be better off just keeping the house as a rental... sorry to break the bad news..
Hope this helps.
All the best,