unsure what to say to tenant/buyer?

[Pistol]

I would offer to convert this tennant from the lease option contract to a rental agreement, keeping the rent at $1400, and keeping 1 or 2 months rent as a security deposit. Have the rental agreement end when the original lease contract was to expire.  Offer that and if they don't want that, let them know that the $5000 option is legally yours to keep.  My 2 cents.  Pistol

[Roger J]

Why, Pistol?  Why would you just give away your (as the landlord) money like that?  Giving back half the option fee and making the other have a deposit, which you will probably have to get back, too?  Wouldn't happen on my watch.

Justin really said it all so I'll just say ditto to that!!

Raj

[stevie-o]

Update:

I have brought a few contractors out, and in their opinion the roof/trusses are safe and not in danger of caving in, due to some supports that were put in a few years ago. But they said in order to fix the problem eventually I should have that whole side torn out and re-done, rafters and all. So what I'm going to do is sister in a few new boards to bolster the rafters that have some cracks, and also put in a few collar ties while I'm up there.

The bathroom will be fixed soon too.

As far as the tenants go, I had a conversation today with them and they asked me if I was going to refund them the money for the deposit (5k). I told them bottom line is NO REFUND. It was explicitly laid out that it is non-refundable and if they were concerned about things, they should've had a home inspection done, or at least looked it over for more than 10 minutes. She's not happy, but I think as much as she doesn't want to, she knows that they blew it.

She told me that they are going to get a home inspector to check things out and make sure they are safe. I think they want someone to say it is unsafe, so they have just cause to move and get a refund because they had no chance to excersize their option. How should I handle them wanting an inspection, and what do I do when the home inspector comes up with all kinds of trivial problems?

[Roger J]

A home inspection is going to point out trivial problems.  That is really of no concern, IMO.  The big problems are more the point.  If you have written estimates/opinions of the contractors, I don't think you'll have an issue.  Also, a home inspection after the fact doesn't hold as much weight, either.

Raj

[stevie-o]

I figured that it won't hold much weight now; I am just becoming increasingly concerned about things these tenants are going to attempt in order to get their money back. I really wouldn't put anything past them.

[propertymanager]

There's nothing more fun than being a landlord!!!

Mike

[stevie-o]

So I've found out...

I take it you agree with RAJ, PM?

[stevie-o]

I got up in the attic this week and braced up 4 rafters that were sagging, or cracked. Also got on the roof and replaced the two shingles that had blown off and used a tube of roof patch as well. So far so good up there.

On to the bathroom in the coming weeks.