Existing Tenants No Lease

[Patrick Q.]

Hi All,

I have submitted an offer on a 2 family property that would be a house hack for me.

There are existing tenants in one of the units.

They pay cash and don’t have a lease (so I am told and have no reason to believe they don’t).

They pay below market rent.

I am OK with this given their unit needs to be renovated and I do not wish to renovate the unit that they rent until I first finish the unit that I will live in.

My question:

Are their any risks that you guys can see with taking on the above scenario?

How would you handle/mitigate said risks?

Would you create a lease for them upon taking possession of the property?

Thanking you guys in advance for any help you could provide.