Conflict Management 101

I received an email from one of my tenants last week, complaining about noise from another tenant, says she can't live like this and is considering "other options". Complainant - she is in her fourties, has two young children, lives on main level of semi-detached house, on a two-year lease. Complainee - he is in his early twenties, single, no kids, lives in the basement of same house, on a six month lease. What to do?

First thought, let the guy in the basement go after his lease is up, which is soon. Then I have to find another tenant to replace him, and pay the commission. That will put a small bruise in the pocketbook, but it will heal quickly, and may get me some peace of mind. I don't enjoy getting messages from tenants saying they "can't live like this".

A little bit of research turns up this fact - I won't be able to get the rent that he is currently paying in the current market. This gives me some motivation to consider alternate solutions. Plus, there's no guarantee that my main level tenant will get along with a new tenant either.

Second thought - let the tenant on the main level out of her lease. It may be easier to find someone for the main level than for the basement unit.

Suggestion from my advisors - talk to the guy, find out what his plans are. Does he want to stay in the unit, does he want to move out?

So I talk to him, and he says he'd like to stay but can't afford to unless I drop the rent. His current rent is $825 inclusive; he is looking for a price in the range $600-$650, and he expects that in this range, it wouldn't be inclusive. So now the amount of rent is no longer a factor in making a decision. All it hinges on now, is whether the two tenants will get along. I asked him, if I lower his rent, would he be able to accept a few conditions in our new lease:

1. No noise after 10:00pm on weeknights.
2. If there continue to be noise complaints against him then he will agree to leave on 60 days notice.

He said he is okay with that. I told him I'll be making a decision in the next day or two - and that's where this stands right now.