Tenant a Problem: How to Get Rid of the Undesirable, But Paying Tenant

By Christopher A. LaVoy, Esq.
Tiffany & Bosco, P.C.

There are inevitably some tenants you wish to get rid of even though they pay their bills. Perhaps the tenant is rude, or makes unreasonable requests, or makes you uncomfortable and fearful for some reason. Often money is not enough to put up with such tenants—life is too short.

TERMINATE THE LEASE

The first strategy for getting rid of such a tenant is to notify him that you are terminating the lease. The vast majority of mini-storage leases are for a month-to-month term and permit either party to terminate the lease upon notice. For example, the AZSA standardized lease provides that “[e]ither party may terminate this Lease by giving written notice to the other at least ten days prior to the commencement of the next one month term.” Under such a provision, the operator does not need to show a breach of the lease for termination, but can terminate it for any reason, so long as the reason is not otherwise legally improper (e.g., a racially motivated termination). Exercise the termination provision in the lease—its your right.

However, you will have a problem if the tenant then refuses to move out. At that point the lease has terminated, but the tenant remains as what the law calls a “hold-over” tenant. You cannot foreclose on the tenant because that requires a “default” under the lease and the lease has terminated. Therefore, you will have to initiate an eviction proceeding in court to obtain an order directing the sheriff to remove the “hold-over” tenant. Such proceeding can potentially take several months depending on your jurisdiction and may require you to hire a lawyer.

FIND A NON-MONETARY BREACH

Because of the possibility the tenant may refuse to move out, the first strategy may not be the best. A second strategy is to look for some non-monetary breach of the lease by the tenant (e.g., storing prohibited items in the unit). However, even if you find such a non-monetary breach, the tenant may cure it after receiving the required statutory notice, thereby avoiding the foreclosure and remaining in the unit.

SIGNIFICANTLY RAISE RENT

A third strategy is to modify the terms of the lease in a way that strongly encourages the tenant to leave, such as by significantly raising the rent for that particular unit. The tenant will likely move out on his own or, alternatively, fail to comply with the modified lease term such that you will be in a position to foreclose.

The best strategy for you will depend on the particular circumstances of your situation. I encourage you to always try to work things out with the tenant if possible to avoid the expense and inconvenience of litigation.

[This article deals with a law related subject at a general level and is not intended for you to rely on. You should consult a lawyer before making a final decision in a situation involving any legal issues.]

Christopher A. LaVoy is partner in the law firm, Tiffany & Bosco, P.C., and serves as AZSA’s legal counsel.

Source: Behind Closed Doors, AZSA Newsletter Archives