Rental Property Investor · Boston, MA · Member since 2017 · 39 posts · 10 votes
Hi,
I have a newbie question. What do you do about existing tenants when considering purchase of a new property? I am looking at a 4 unit MF and all units are occupied with TAW paying below market. I want to do a bit of work on each unit (add a half bath, finish the attic space, rip up the carpets to expose the hardwood underneath, etc.). My goal is to do a condo conversion and sell 2 units, keep the other 2 and increase the rents to market and hold long term. I'm not sure about the logistics when existing tenants are involved and was hoping BP members could help me understand my options or give me recommendations.
@Marc V Palmeri, you have a few options. I recommend speaking to a local tenant-law attorney as local laws/regs vary. Importantly, any lease that is currently in effect must by honored by the new owner.
Put in the contract that the building be delivered empty, so it's the seller's problem. Of course, they may not accept those terms.
If the tenants are on month-to-month leases, just give them notice (usually 30 or 60 days depending on state/local laws).
If the tenants have longer leases, you can wait them out and notify that you won't be renewing.