Subletter, Inherited

[youareceo]

Jurisdiction

Michigan

I have a fun situation! I inherited a permitted subletter on a duplex I bought to live in the bottom (was vacant the section, thank God). The seller is a nutjob and had only an oral lease. The written lease, I hear only created for DHS to give the renter assistance, says no subletters. So I am within my rights to evict. That is not what I want to have happen, however. I am in the process of writing a new Lease, so please no judgment on that.

The subletter has proven she has paid her portion since Lease inception, and the tenant's boyfriend is is a registered occupant (as far as I can determine LOL) lost his job. They have not paid January rent, and they have a huge tax settlement coming. He is looking for work, and the employer basically closed due to no money then reopened. The lease is month to month, even week to week. They paid weekly before I bought, not I did monthly so they could leave if they want for ME to pick a tenant. I would totally rent to the subletter, to be honest. The tenants are good peeps, but they are definitely PeopleOfWalMart.com examples.

The basic questions, can I evict the tenants and not the subletter, vice versa, and all of them? I think I can evict all or none for nonpay/right of possession, and violations of terms individually and separately.

I have already issued a Quiet Enjoyment Notice on the main tenants, knowing that in Michigan written will confirm or change any oral agreement. This notice spells out what they can and cannot do the the subletter if she does not pay, because they feel she has not. Classic example of why an oral contract/lease is thrown off by lack of mutual assent! She pays 1/3 utilities monthly separately from 1/3 of the rent, every two weeks.

It is clear the tenants are "living off" what the subletter is paying, at my expense. The tenants will not sign a statement for the subletter saying she is paid up. I want to issue a notice to the Tenants and a directive to the Subletter that her rent is paid to me, as long as the rent is not paid up completely. Is this legal, keeping in mind that any part of my oral Lease can be replaced by written clarifications they sign? And I do NOT want to wait until the new Lease is ready for March 1st.

 

[youareceo]

And HEY, I know I could call my attorney. But Milo's services honestly are not very strategic. Way too cerebral to be a good planner...and he will digress far too much, avoiding a real answer.

I have a fun situation! I inherited a permitted subletter on a duplex I bought to live in the bottom (was vacant the section, thank God). The seller is a nutjob and had only an oral lease. The written lease, I hear only created for DHS to give the renter assistance, says no subletters. So I am within my rights to evict. That is not what I want to have happen, however. I am in the process of writing a new Lease, so please no judgment on that.

The subletter has proven she has paid her portion since Lease inception, and the tenant's boyfriend is is a registered occupant (as far as I can determine LOL) lost his job. They have not paid January rent, and they have a huge tax settlement coming. He is looking for work, and the employer basically closed due to no money then reopened. The lease is month to month, even week to week. They paid weekly before I bought, not I did monthly so they could leave if they want for ME to pick a tenant. I would totally rent to the subletter, to be honest. The tenants are good peeps, but they are definitely PeopleOfWalMart.com examples.

The basic questions, can I evict the tenants and not the subletter, vice versa, and all of them? I think I can evict all or none for nonpay/right of possession, and violations of terms individually and separately.

I have already issued a Quiet Enjoyment Notice on the main tenants, knowing that in Michigan written will confirm or change any oral agreement. This notice spells out what they can and cannot do the the subletter if she does not pay, because they feel she has not. Classic example of why an oral contract/lease is thrown off by lack of mutual assent! She pays 1/3 utilities monthly separately from 1/3 of the rent, every two weeks.

It is clear the tenants are "living off" what the subletter is paying, at my expense. The tenants will not sign a statement for the subletter saying she is paid up. I want to issue a notice to the Tenants and a directive to the Subletter that her rent is paid to me, as long as the rent is not paid up completely. Is this legal, keeping in mind that any part of my oral Lease can be replaced by written clarifications they sign? And I do NOT want to wait until the new Lease is ready for March 1st.

 

[army judge]

It is clear the tenants are "living off" what the subletter is paying, at my expense. The tenants will not sign a statement for the subletter saying she is paid up. I want to issue a notice to the Tenants and a directive to the Subletter that her rent is paid to me, as long as the rent is not paid up completely. Is this legal, keeping in mind that any part of my oral Lease can be replaced by written clarifications they sign? And I do NOT want to wait until the new Lease is ready for March 1st.

If you buy real estate, you inherit the rights of the former owner.
That means you inherit the tenants.
Without a written lease, Michigan state law applies in the form of a month to month tenancy.

I suggest you read the various state statutes:

Michigan Legislature - Home


Michigan Rental Laws

Any rent unpaid at the time of purchase enures to the benefit of the purchaser.
However, your seller offers you no proof of any unpaid rent.
Without proof, a court would likely rule in favor of the tenants, as you can't prove what may have been owed without proof from the seller.

There are no oral leases.
Two parties can create an oral agreement, but that is legalized by operation of state law.

In Michigan, here is the law, regarding "month to month tenancy" as published by your legislature:

http://www.michigan.gov/documents/Landlord__Tenant_Guide_10-2005_142052_7.pdf

Michigan Leases and Rental Agreements Laws - FindLaw

 

[youareceo]

I notice I unintentionally omitted the fact that the unpaid rent was incurred AFTER I purchased. Shame on me for not saying so, and not evicted them straight away, right?

And if I get a signed agreement, said agreement even if not a true lease, is still in force? (Vies a vie my agreement about quiet enjoyment to the subletter)

What I am trying to see is if I can issue them a notice again that I can collect the subletters right (not utility payments)? If not, I will get that Lease done ASAP. Thanks again.

If you buy real estate, you inherit the rights of the former owner.
That means you inherit the tenants.
Without a written lease, Michigan state law applies in the form of a month to month tenancy.

I suggest you read the various state statutes:

Michigan Legislature - Home


Michigan Rental Laws

Any rent unpaid at the time of purchase enures to the benefit of the purchaser.
However, your seller offers you no proof of any unpaid rent.
Without proof, a court would likely rule in favor of the tenants, as you can't prove what may have been owed without proof from the seller.

There are no oral leases.
Two parties can create an oral agreement, but that is legalized by operation of state law.

In Michigan, here is the law, regarding "month to month tenancy" as published by your legislature:

http://www.michigan.gov/documents/Landlord__Tenant_Guide_10-2005_142052_7.pdf

Michigan Leases and Rental Agreements Laws - FindLaw

 

[adjusterjack]

If you are not getting the full amount of the rent (no matter from whom) on the day it is due, you serve your pay or quit notice naming all the occupants and if you don't get your money by the deadline you file for eviction against all the occupants.

Frankly, if you are going to sit on your thumbs while you try to figure out who's who and what's what, you'll be losing dollars.

Develop a heart of stone when it comes to tenants or they will walk all over you.

Treat all the occupants as a single tenancy and don't get in the middle of their financial issues.

 

[youareceo]

Will take the advise but now I have to call Milo for my answer on whether I can collect from the subletter. I see nothing in the month to month tenancy code that says I can't. Thanks tho.

If you are not getting the full amount of the rent (no matter from whom) on the day it is due, you serve your pay or quit notice naming all the occupants and if you don't get your money by the deadline you file for eviction against all the occupants.

Frankly, if you are going to sit on your thumbs while you try to figure out who's who and what's what, you'll be losing dollars.

Develop a heart of stone when it comes to tenants or they will walk all over you.

Treat all the occupants as a single tenancy and don't get in the middle of their financial issues.

 

[army judge]

Will take the advise but now I have to call Milo for my answer on whether I can collect from the subletter. I see nothing in the month to month tenancy code that says I can't. Thanks tho.

As a former landlord, adjusterjack is spot on in his advice.

If you can't take emotion out of being a landlord, you're just going to be fleeced.

If rent is due on the 1st and isn't paid in full by the 5th (or whatever the lease specifies), you should serve notice on the deadbeat on the 6th to QUIT.

If a tenant fails to pay rent in accordance with the lease terms, you have a deadbeat, not a tenant.

Once you start making exceptions, watch how quickly others learn you're a soft touch for a hard luck story.

If you wish to simply be some deadbeat's "cash cow", you might as well as GIFT them the property.

I'll let Milo give you the long winded explanation, but suffice it to say, your SQUATTERS -AKA-"sublettors" owe you NOTHING.

There is no lease between you and the SQUATTERS.

Why?

There is no written proof of the lease, as far as you can determine.

You were given some sob story about a tenant that subletted property to a SQUATTER absent a written lease.

Yes, you can bring a lawsuit against deadbeat and squatter.

Let's say you prevail and receive a judgment for $100,000, $1,000, $100, or even $1.00.

You don't walk out of court with the loot.

You must first perfect the judgment, then seek to collect the judgment.

The court won't assist you in collect your $100, mate.

That's a task you must do alone, or hire a debt collector to do it for you, at about 1/3 of the judgment amount.

See where this is headed?

If you encounter deadbeats, it is advisable to get them out of your life IMMEDIATELY.

I'm dispensing legal advice, and former advice of a landlord who at one time owned over 100 rental properties.

I gave away five to each of our children, and wished them each well.

These days all of my real estate (a working cattle ranch, several homes, commercial properties, my income, my wife's income, etc..) are in a family trust.

All of my earthly worries have long ago been quited, calmed, and eliminated.

The others I sold, because I didn't wish to experience what you're about to endure.

If you're "hell bent" on suing someone, you can take the SQUATTER and the "tenant" to court.

Without a lease, I don't see how you're going to collect rent because you don't know how much the rent is, when its to be paid, and how long it has been unpaid (meaning what is your alleged arrearage).

I wish you all the best, mate.

 

[adjusterjack]

I'm dispensing legal advice, and former advice of a landlord who at one time owned over 100 rental properties.

All I had was 3 and I'm giving the same advice.

Will take the advise but now I have to call Milo for my answer on whether I can collect from the subletter. I see nothing in the month to month tenancy code that says I can't.

And there is nothing in there that says you can.

What Milo is likely to tell you is that you can't because you have no contract (oral or written) with the subtenant.

The tenant's agreement with his subtenant is meaningless with regard to your being paid rent.

If the tenant doesn't pay you in full on the due date then he, and everybody else, gets served the pay or quit and subsequently gets evicted.

The longer you wait, the more this is going to cost you.