'We don't know whether they have signed leases or are renting month to month'

"My husband is the executor of his estate." (Photo subject is a model.)

Dear Quentin,

My father-in-law recently passed away, and my husband is the executor of his estate. He owned a house in the New York City area with a mortgage, and there are currently two tenants renting rooms in the house. What do we do next?

My husband plans to sell the house as soon as possible, but we understand that it will need to go through probate first. We're not sure what to do about the tenants in the meantime. We don't know whether they have signed leases or are renting month to month.

We want this to go as smoothly as possible. What steps should we take regarding the tenants while the estate is going through probate and before the house is sold? How long will this process take? What happens if the tenants refuse to move?

Beneficiary & Daughter-in-Law

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You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.

In New York state, the longer the tenant has lived in the home, the more notice the landlord or, in this case the landlord's estate, must give.

Dear Beneficiary,

The earlier you tell them of your plans, the sooner they can make alternative arrangements.

It sounds like they shared the house with your father-in-law and, given that he passed away, they should be expecting you to come calling to say you're either going to sell the house or move into it yourself. If he lived in another property, they're tenants. It's not a bad time to sell. House prices are up 4% over the past year in New York state, despite high mortgage rates.

In New York, a lodger renting a room in the homeowner's primary residence - your father-in-law, in this case - has fewer protections than a tenant, as the homeowner retains control of the home and the lodger does not have exclusive possession. Permission to stay can be terminated with appropriate notice, typically 10 days, although you cannot use threats, force, or an unlawful lockout.

Rules are different for tenants than they are for lodgers. They may be entitled to 30, 60 or 90 days' notice depending on the situation. A lodger's notice period may track the rental/payment period and have fewer statutory protections. Many of the protections that apply to conventional residential tenants may not apply in the same way to someone renting a room in an owner-occupied home.

If your father-in-law's occupants are tenants, it's more complicated. In New York state, the longer the tenant has lived there, the more notice the landlord or, in this case the landlord's estate, must give. If the tenants have lived in your father-in-law's house for less than one year, you can give 30 days' notice, 60 days' notice for one-to-two years, and 90 days' notice for two-plus years.

These rules apply to both fixed-term leases and month-to-month tenancies. For a fixed-term lease, the tenancy ends on the lease's stated expiration date, but the landlord may still need to give the appropriate advance notice if they decide not to renew the lease. The same notice periods can also apply if a landlord intends to raise the rent by 5% or more.

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Legal advice for evictions

Thomas A. Sirianni, a lawyer based in Brookville, N.Y., addresses this exact question and what happens if the tenant does not comply. "Give the tenant the correct notice," he writes. If they haven't paid rent, issue a 14-day written rent demand. Wait for the notice period to expire and file an eviction case in court so the tenant gets a chance to respond.

"They can dispute the rent, claim the apartment has serious problems, challenge the notice, ask for more time, etc.," he adds. "There may be several court dates, negotiations, or adjournments. If the landlord wins, the court issues a warrant of eviction. The sheriff or marshal gives another 14-day notice. The sheriff or marshal - not the landlord - performs the actual lockout."

The costs are modest, if there's no dispute. If the tenants don't comply, expect to pay thousands of dollars from your father-in-law's estate. "The out-of-pocket court costs of a New York eviction are relatively modest: typically a filing fee, process-server fees, and the sheriff's or marshal's fee for the lockout," Sirianni says. "Together, these costs generally run a few hundred dollars."

Attorney fees can run anywhere from $1,500 to $5,000. "I know how it feels to waive rent someone genuinely owes you," he adds. "It feels like losing. But I have watched landlords spend five extra months litigating on principle to collect a judgment that will never be paid, while the mortgage, taxes, and utilities on the unit came out of their own pocket."

And now a warning: "Self-help eviction is illegal throughout New York," Sirianni writes. "A landlord who changes the locks, removes a tenant's belongings, shuts off utilities, or otherwise forces a tenant out without a court judgment and a warrant executed by the sheriff or marshal is committing an unlawful eviction." The same applies to a lodger.

The lesson: Stick to the rulebook on evictions, and good luck with the house sale.

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The Moneyist regrets he cannot respond to letters individually. Check out The Moneyist's private Facebook group, where members help answer life's thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns.

More columns from Quentin Fottrell:

My wife and I are both retired': Do we dip into our $2.3 million fund to pay off our $300,000 mortgage at 2.9%?

'I don't wish to be cold-hearted': My elderly relative can no longer care for himself. Am I wrong to leave his care to the state?

'There is a 50% chance I could get evicted': My mother offered to buy me a $1.5 million house, but there's a catch. Should I accept?

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-Quentin Fottrell