Posted by Rich-CA on May 26, 2007 at 13:18:08:
An idea: is your rent above the market for the unit?
What I would do is:
(1) Add up the option fee and rent contributions earmarked for down payment.
(2) Add that amount to the security deposit.
(3) Subtract the amounts for back rent, late fees, repairs.
(4) Return the balance.
Lay this out in detail, present to Judge as evidence you are being fair but not willing to eat repair and lost income costs. Be prepared to “give away” the late fees. Even “friendly” jurisdictions often reduce or toss these anyway.
This method will indicate your willingness to return the option fee but that you want your losses covered first.
Be honest, friendly, cooperative and above board. It really influences people and helps get results much better than you would normally get.
Evicting, but L-O tenant demands Option $ Back - Posted by Handy (MN)
Posted by Handy (MN) on May 25, 2007 at 19:41:50:
Found out too late that these are bad tenants with evictions and filed lawsuits vs. landlords on their record. They pd $3000 for option ($56k price) and $500 a month. Stopped paying rent a few months ago, owe $2400 now incl. late fees. Now as we evict (offered $250 cash to no avail), a local atty says we’re screwed, that the local landlord-hating judges will surely make us pay their option $ back, all of it.
Oddly, we know they are trying to get a mortgage (unlikely, bad credit) and still want to buy it. Though their option $ is contractually forfeited, we’d be happy to sell to them to end the hassle. I used Bronchick’s separate Residential Lease and Tenant’s Purchase Option contracts, plus disclosures. Could a landlord-hating judge really ignore Contract Law and grant them their option $ back?
Re: Evicting in MN - Posted by Anne_ND
Posted by Anne_ND on May 27, 2007 at 18:47:14:
I’ve done an eviction in MN with a section 8 tenant. The judge had no problem determining that the tenant owed me money, and had to move out. He asked me to help out by returning a portion of the deposit since I could be made whole and still give her a little bit of funds.
Were I you, I’d do as Rich suggests and consider the option money as a security deposit, get your house back and move on. Be reasonable.
And next time do YOUR job property- which is to screen tenants before they move in.
Anne
Re: Evicting, but L-O tenant demands Option $ Back - Posted by Bill H
Posted by Bill H on May 26, 2007 at 17:43:57:
“a local atty says we’re screwed, that the local landlord-hating judges will surely make us pay their option $ back, all of it.”
Did you ever stop to think that the judge just might be balancing the scales and making it a level playing field…did you come to the courts with “Clean Hands?” Are you or did you take an unfair advantage?
In his mind he might just be saying. "Exactly what did “Handy-MN” give this buyer for his $3,000 option money…they could have just as well entered into a purchase agreement and used the $3,000 as a down payment…and…as Rich-CA posted…is this $500 per month a good FAIR rental fee for this proerty? In today’s downward spiraling real estate market…just how fair is this purchase price of $56,000?
Deal or NO deal? Just some food for thought.
Not that I am all for the liberal judges…but do believe that most are merely trying to balance the scales and make it a level playing field…although we, the investors, feel we are being screwec.
Good Luck,
Bill H