[USER]

I have one rental property which I am about to sell. Tenants still live there and are currently on month-to-month after declining the Rent-To-Own purchase option in the lease.

They owe me a significant amount of money, but if I forgive it completely, I still come out ahead with the contract I have with the new buyer, vs.

if they had purchased it according to the RTO agreement made 5 years ago. So, I am inclined to just forgive it rather than fight over it, so they can get a fresh start with their new landlord.

Any thoughts on how I should notify the tenant?

As it is, their first payment to the new landlord would be due February 1, after an early January closing date.

Nothing in the lease says how much notice I have to give them, nor does state (Ohio) law.

[Tim]

Rental property is a business.
They owe you money.

Why should you forgive them?

I start the eviction process on the first legal day after non payment.

I also make sure that any deadbeats are sent to collections and reported to the credit bureaus.

[David]

If you forgive the debt (usually because the tenant is unable or unwilling to pay), be sure to report it to the IRS as forgiven debt.

You will get a tax benefit and the tenants will be required to pay taxes on the forgiven debt.

That’s how a landlord gets the last word.

[Allison]

Hope you warned the buyer that the tenants are delinquent. But I don’t know about how you give notice to them.

When is their lease due?

Does the buyer expect the tenants to be still leasing the home?

I simply wouldn’t renew the lease if it was due.

[Tom]

Just do it like you would like it to be done if the roles were reversed.

[Dinene]

Notify them the way you’d like to be notified. That’s kind of you.

[Shawn]

Have you tried giving them a discount? See if you can get 50% of what they owe you?

[Luciano]

You should try to negotiate a settlement if possible. Then deduct whatever losses from what they owe you.

No reason to guve them a gift if they couldn’t/ wouldn’t pay..

I also would let the new owner know.

[Sarah]

Tell them as soon as you can and forgive their debt for Christmas.

[Author]

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