‘Problem’ tenant has right to renew for another three years
Q:I have a tenant in one of my rental properties who has become a problem. Nothing satisfies her and she is constantly complaining. She has a right to renew for three more years. I’ve tried to let her out of her lease, but she wants to stay. How can I get rid of her? She’s driving me nuts.
A:Well, contracts mean something. You agreed she could stay there for a long time and the law expects you to honor that agreement and live with it. Unless she is damaging the premises or breaching her lease, you have the right to collect the rent. Next time, you may want to consider a one-year lease. That way, the impact at least is short term.
Q:I’m retiring and am looking at real estate investments to keep me solvent and enjoy my retirement. I’ve been offered a 15-year lease with a national chain at a fixed rent. This looks very good to me. Am I overlooking anything?
A:Maybe. What if inflation goes back up? You’ll be tied in to a fixed income that can erode very quickly in an inflationary environment. There was a time when prime rate was 19 percent. You may want to look for a lease with escalation provisions in it. It will limit that risk somewhat. You also need to study the tenant’s history. National chains go out of business from time to time. You need to keep adequate capital available in that event.
Q:I’m trying to buy a home, but the lender has caused so many delays and I’m now past the closing date. The title company has sent the earnest money to the seller without my approval. My lender keeps telling me I’ll be approved shortly, but they have caused my default, as I see it. Can I sue the title company?
A:In today’s environment, you should give yourself plenty of time for loan approval. There are new federal regulations that make the lending environment very tough, even for otherwise well qualified buyers. Assuming you used a TREC form, it provides that the title company, upon demand from one of the parties, may send that demand to the other party. If the other party doesn’t respond within 15 days, the title company may disburse the earnest money to the party making the demand. If the title company followed that procedure, you agreed to those conditions when you signed the contract.
Q:I’ve been leasing a house and have been transferred because of work. I can sublease the house to another employee, but that landlord says I can’t. If this is my place for the next year, why can’t I sublease it to avoid the potential damages?
A:Texas prohibits the assignment or sub- lease of rented premises without the permission of the landlord. It is the landlord’s property, not yours. The new subtenant may not be creditworthy or have a history of leasing problems that could prevent the subtenant from meeting the landlord’s application requirements.