Remove tenants before? acquriing

7 Replies

If you acquire a 3-4 unit property and there are tenants there already, what is the best legal method you have done to remove them so you can pick your own tenants base on your screening methods. 

Reasons I ask:

1. I don't know what type of investor the last owner was or is:

2. I don't know what type of method he/she used to pick the tenants?

3. I Want control on who is living there and the metrics I use to screen them but the best return on my investment and reduce overturn and damage to property. 

Questions:

1. What method have you used?

2. And if if so what plans do you have in place to replace them ASAP?, should you be looking for tenants while trying to remove them?

3. Can I ask the owner before acquiring the property that i need them removed?.

4. What if they don't want to move since the lease will say move on x date?, can they fight it?.

P.S sorry for stupid questions, trying to cover my basis. 

Ask for copies of the lease agreements.  The answers could be there.

And check to verify that there are security deposits!  We bought three single family units as a package and found two of the three units never had security deposits collected when they signed by the prior owner (we saw this day before settlement)...Doesn't hurt to talk to the tenants either if you get the chance...we've also had inconsistencies between what the tenants tell us and the seller tells us...just figure out which party has the creative memory...good luck!

With that said how about if you need to repair and update the property but lease isn't up or there is tenants when you bought it. Do you wait until its over to start the demo or ask to relocate for a short amount of time?.

I would offer cash for keys. If for some reason I HAD to get them out. Pay for moving expenses, storage for a month if they need, etc. 

I think that most people let the people stay for duration of their lease. Have you ever seen how many units there are that have some units updated and some not? Update them as they come available. You never you could kick out a perfect tenant.

Medium head icon colorRyan Dossey, Call Porter | http://Callporter.com | IN Agent # RB15001099

Originally posted by @Abou C. :

what is the best legal method you have done to remove them so you can pick your own tenants base on your screening methods. 

what plans do you have in place to replace them ASAP?, should you be looking for tenants while trying to remove them?

3. Can I ask the owner before acquiring the property that i need them removed?.

Hi Abou- I'm not sure you're aware, tenants have a lot of rights afforded to them by written leases. If your tenants are month to month, that's one thing, but if they have year leases or longer, the seller or you can't just kick them to the curb because you want to use more stringent criteria.

In addition to seeing and verifying the contracts and sec deps ask to see the residents' actual rental applications.  This will tell you much more than the contracts and you can always update the applications with the current residents' employment after COE when you do the new contracts. 

I would never remove tenants without good cause. I suggest doing your homework ahead of time. When you're in contract ask for financials showing any late payments and have owner include any and all copies of notices given to tenants. When you do your final walk-thru of the units you can see and make note of damage beyond normal wear n tear. 

Legally removing some or all of the tenants not only creates vacancies, which are very expensive, but just as bad is the ill will, and that will cross pollinate to other residents. I would consider removal as a last resort only, and not just because you didnt pick them. 

Remember, it may be your property, but it is the resident's home. As long as they are respecting it, not damaging your property and paying on time there no reason to do anything unless your plan is to do extensive remodel. I suggest getting the lay of the tenant land before doing a thing. They will be nervous enough and residents are often inclined to move when a property sells. They, too, have a fear of the unknown and the unknown is you. 

Cordell M. always get a credit at COE for stated sec deps. 

Great advice advices!

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