I recently got an executed purchase agreement on a 5 unit building (renovating two basement units that are currently not in use to make it 7) in my area (Lansing, MI). It is a currently 'fully occupied' building in that there are five signed leases. As we are heading closer to closing (the next few days) we found out that one tenant did not pay this month and now owes ~$180 in fees on top of the rent. The place is below market rent and it is affordable housing (C class property) so I would assume that this person is never going to pay. I did an inspection last week, and my inspector told me that he couldn't believe that someone was living in this unit because there were very few personal belonging. I am thinking that the person left town. In the event that I cannot contact the person what should my next steps be. I am assuming that a notice to pay or vacate was already sent to the property because the current owner owns ~550 units.... so seems like he would have this under control.
I guess my questions are 1) what is the fastest way to take possession of the unit so that it can be marketed again?
2) If I cannot contact the person do I need to go through a court ruling?
3) Do I need to independently send a pay or vacate notice if the current owner already did this or can I take the next steps in the process?
Generally in a new owner situation you would have to start over. This is a good to learn your state landlord laws. Best bet is an eviction attorney, watch and learn if you think you want to DIY later on.
@Alex Corrion , if you're in the Lansing Real Estate Investors facebook group, search there. Someone just asked about a similar situation a few weeks ago. I believe Sam Dua helped her out.