Hello. I'm a first time home buyer, looking to house hack. The property we got our offer accepted on is coming with a tenant whose lease ends end of February (we close in October). There are 2 units in the multi-family, one is a 1br/1ba unit, the other is a 3br/1ba unit. My fiancee agreed to do this deal if we could live in the 3br which is currently being occupied by the tenant. According to my calculations, the current tenant (single mom/ 3 kids) has been getting a substantial deal and is currently paying about $700 under market value. When we close on the property, I want to get the wheels in motion for making sure the tenant will be out at the end of her lease, but obviously am worried about the potential for dealing with an eviction off the bat. My question is, does anyone have any advice for what I should be doing now to expedite this process? Should I hire a property management company right off the bat to deal with this situation and keep me at an arm's length away? Should I do it myself and just hire a lawyer to assist/advise? I know this is a newbie question, I'm obviously just experiencing some anxiety surrounding my first deal. Appreciate any help!
All of those are decent options, but first I would start with talking with the tenant yourself to see what her plans/intentions are way before February rolls around. I would definitely talk to your attorney for advice specific to your situation, but another thought was you could offer "cash for keys", essentially paying the tenant to move out, could be faster than an eviction process depending on many factors. Hope this helps! Welcome to BP~
Very helpful, thanks for responding @Martin Vehlow
$700 Under market???!?!??!?! Is this real life?
if that's really the case, you will definitely need to give her a heads up or see about having a prop. manager deal with delivering the news that rent will be going up... $8,400 this year.
Congrats if your numbers are even close to correct. you're hitting the mini lottery
@Sam Boynton it would be good to see what is in their current lease about their options at the end of the lease.