Closing on First Duplex next Tuesday - looks like it will be an eventful start

Closing on First Duplex next Tuesday - looks like it will be an eventful start

Member since 2023 · 1 post · 2 votes

Really excited to be closing.  It's been a smooth journey, I read a lot on here in preparation and the transaction has gone smoothly for the most part.  My plan is to live downstairs and rent the upstairs.  It was going to be delivered with both units occupied but when the downstairs tenants found out I was planning on living there they moved out.  Which. . I don't mind, saves me having to ask them to move.  

The upstairs tenant has been there a long time, and is a friend of the current owner.   Today I got an email from my real estate agent stating they've quit their job and haven't paid the rent this month.  We close on the 15th.  The rent is a little under market and I don't mind them leaving either.  The sooner the better if I can get solid tenants in there before it starts snowing, the question is how to handle it?  Do I day of closing request proof of payment for the month of August or to vacate the premises?  Begin eviction proceedings immediately? 

I'd hoped to keep the upstairs tenant but I've read not to make exceptions and I don't want to start with problems any more than I have to.  


Also any general advice on what to do when you close. . my list has, change the locks, clean the air ducts, get someone out there to tell me more about the stucco on the house before the weather changes.  Open to any advice.  Thanks!

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Twin Cities, MN · Member since 2023 · 23 posts · 10 votes
3y

Hi Nicholle, Congrats on your duplex!

Sounds like a sticky situation with the upper tenants. Unfortunately I don't have any advice on that one. If you have an agent, they should be able to help troubleshoot that issue. If not, try posting in other areas on this forum and I'm sure you will get great advice. I'm sure you're not the first person to encounter a situation like this and I'm sure you won't be the last.

As far as post closing items, if you didn't have this done as part of your inspection or as a contingency for your offer, I would highly recommend getting a sewer scope done. Most of the duplexes in St Paul are 100+ year old homes and depending on the topography of the property and many other factors there's plenty of opportunity for there to be issues there.

Good luck with your new property!

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  • Twin Cities, MN · Member since 2023 · 23 posts · 10 votes
    3y

    Hi Nicholle, Congrats on your duplex!

    Sounds like a sticky situation with the upper tenants. Unfortunately I don't have any advice on that one. If you have an agent, they should be able to help troubleshoot that issue. If not, try posting in other areas on this forum and I'm sure you will get great advice. I'm sure you're not the first person to encounter a situation like this and I'm sure you won't be the last.

    As far as post closing items, if you didn't have this done as part of your inspection or as a contingency for your offer, I would highly recommend getting a sewer scope done. Most of the duplexes in St Paul are 100+ year old homes and depending on the topography of the property and many other factors there's plenty of opportunity for there to be issues there.

    Good luck with your new property!

  • St. Paul MN · Member since 2019 · 15 posts · 6 votes
    3y

    Nicholle, 

    Congrats on the closing! I have brought a 30 day notice to tenants I inherit, immediately after the closing. This allows me to rehab the vacant unit and raise then raise the rent

  • Sean HudginsPro Member
    Real Estate Agent · Chesapeake Va · Member since 2019 · 150 posts · 100 votes
    2y

    CONGRATS on the deal. 

    Im not in MN so I can't speak to specifics but I do think it would be wise of you to approach this with caution. If this was my deal I would try and speak with the tenant and find out what's going on. However I would also let them know that they signed a lease agreement... hopefully with the old owner and if not talk to an attorney asap as that could really cause issues depending on your sates tenant laws. 

    I would let them know that you plan to honor that lease as long as they do the same, and if they are unable to pay I would make if very clear that I would be moving forward with eviction in accordance with the lease.

    There is a way to be a good human and help tenants out when they are in need but it's a fine line to walk as there are many that will absolutely take advantage of that charitable nature. 

    I find it best to stick to the black and white and communicate intent early so that no one can claim to be caught off guard. also documenting everything including those communications is important to ensure you are in the strongest position if a tenant tries to take advantage of you.

  • Bryon AndrewsBusiness Member
    Real Estate Agent · Saint Paul, MN · Member since 2018 · 201 posts · 104 votes
    2y

    Hey @Nicholle Jean Any update on how this played out? There are a lot of other factors that we would need to know more about in order to give proper advice. 

    Bryon Andrews Real Estate51 Review
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  • Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    2y

    Not paying rent and moving out are two very different things. Find out what you are dealing with before you close. If he is not paying his friend either they have some arrangement or he’s screwing him over. Right now he is the sellers problem.

    I would ask for 3 months worth of rent held back from the sale until he is out and serve notice immediately if u need to close.

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