Auction property won / tenants in place

4 Replies

Won a auction on a duplex. Has tenants in place. Will have both fill out new leases. they are asking me about deposits and if they will get them back. I'm pretty sure they won't as it's foreclosure. The question I have is do I insist on new deposits??

Medium image12181 2Bobby Beard, BBI Realty | 615‑975‑8973

My guess would be that if you ask for new deposits they will move out fast.  

Though the home is a foreclosure, who were they paying rent to prior to you purchasing?  

My gut from experience tells me they will move out very soon.  Might be best to get them out so you can go in an refresh the place and start out on a new foot.  

Good luck

Medium buymemphisnow stacksCurt Davis, Buy Memphis Now | [email protected] | 605‑310‑7929 | http://www.BuyMemphisNow.com | TN Agent # 00321765

They haven't paid in about 4-5 months lol living rent free. I want to keep them there bc they both have been there for over 4 years.

Medium image12181 2Bobby Beard, BBI Realty | 615‑975‑8973

Why would you want to keep tenants that haven't paid rent in months when you can have new ones with a new lease and deposit that will pay rent?  Who knows how reliable they were before, but if they've gotten comfortable living rent free, my guess is you'll have some hurdles with them, and perhaps some demands for repairs.

If they've been living rent free for a couple months, and if they want to keep living there, I can't think of any excuse for not paying the deposit again. I'd basically try saying that their deposit went towards one of their free months rent, and the new deposit they give you will be returned when they move out.

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