Having tenants in your property can be a tricky issue, especially in times of COVID. First, tenants come in different variety. In many cases, there is somebody living in the property who is a relative or a beneficiary of the decedent. This person may or may not have the right to live there. Next, there are tenants who have actual signed leases and are currently residing in the property. Finally, there are those who have no right to be at the property and are there “squatting” and in many cases, causing damage and destruction to the property.
Tenancies are a delicate topic. First, the way you deal with tenants needs to be compliant with local and state rental ordinances. Second, they need to be dealt with in a strategically intelligent manner to achieve the results that most benefit you. Third, one must keep in mind that the presence of a tenant is a part of the properties “story” and therefore all considerations must be made to keep the future sale of the property in mind.
In many cases, having tenants in your property can be a good thing. For example, in the sale of an apartment building. But even then, once must consider if the tenant’s presence at the property is helpful to the sale, or harmful. Often times a tenant is paying very low rent, which is harmful, or, they are paying a very high rent and are credit-worthy, which is a good thing. In each case, decisions need to be made about strategies to increase revenue, or to leave the building AS-IS.
Family members living in the decedents property also need to be approached strategically. Having a family member who refuses to leave in the property can negatively impact the value of your property because the new owner would have to deal with relocating them from the premises.
Whatever your tenant story is, we are able to help. We can review leases, speak to tenants on your behalf, analyze upside potential in rents, talk to the tenants or relatives on your behalf (in most cases), and help your property become the most marketable for the highest possible price.
Please call us today to discuss your unique probate situation.
