How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask WiseOwl58 Your Own Question
WiseOwl58, Lawyer
Category: Real Estate Law
Satisfied Customers: 3599
Experience:  Experienced real estate lawyer and real estate broker.
Type Your Real Estate Law Question Here...
WiseOwl58 is online now
A new question is answered every 9 seconds

I am Manager of a property management business that

Customer Question

Hello,I am Manager of a property management business that took over and manages a large portfolio of single family homes in Minenapolis, MN.Recently I received a city citation for operating a rental property without a license. I looked into it and the prior property management firm did not obtain a license. The inspector showed up at the tenants door and they immediately thought payday and have been consulting with free lawyers.In Minneapolis, it is illegal to operate without a rental license and in precedent cases the tenants have received back all of the rent they have paid when the property did not have a license. (in this case in excess of $10,000).As their lease was over and we are going to tear down the house and build new, we have not applied for a rental license and have given the tenants 30-day notice to vacate (in the terms of their lease). I also talked with the city and as long as they are out before 6/1 (their notice is for 5/31) there would be no unlawful occupancy of the building or subsequent fines.Recently the tenants have been extorting us for payment, holding the $10,000+ in past rent over our heads. The tenants were $2500 behind to start with and have a $1400 water bill (which will more than likely be assessed to the property)Anyway, Being a business we are looking for the most cost effective way out of the mess. The tenants have expressed in writing that they are willing to take the sum of about $5,000 in various terms to settle outside of court and sign a release or other documents to not be able to hold it over our heads.1. Is there such a release or another contract that we could draft it up and settle it out of court?
2. Where could I get such a contract?3. Is there any option we are overlooking for the situation? Something besides getting sued for all previous rent or settling outside of court for about $5000?ThanksDevon/Richard
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  WiseOwl58 replied 6 months ago.
I will be happy to prepare the settlement and release agreement. I suggest we have a call so that I can get the details including the names of the parties and address of the property and certain other terms that I need to draft the settlement and release agreement.If you accept the phone chat, we can accomplish this in one efficient call and then you can be done with these tenants once and for all and demolish the house and rebuild new. Please rate the anwer 4 or 5 and close out the question. Good luck to you. I wish you all the best.
Expert:  WiseOwl58 replied 6 months ago.
Please rate 4 or 5 and close out the question. Good luck to you. I wish you all the best.

Related Real Estate Law Questions