Buying Property with Existing Tenant

[Alexander Merritt]

Hello BP Community,

For all you Buy and Hold experts out there, would/do you ever buy a property with an existing tenant? Please state why or why not? If "yes", how do you handle it? Do you have to honor the existing lease? Would you make your offer conditional on the tenant passing your screening, etc?

Thanks in advance!

[Roy N.]

@Alexander Merritt 

We frequently buy properties with tenants in-place - when you are buying MFH, you rarely take vacant possession ... nor would you normally want to have a big empty building ;-)

You inherit the existing contracts (leases) with the purchase and must honour them. In some jurisdictions there is an exception if you, or an immediate family member, plan to occupy one of the units (or the entire property if a SFH) which allows for you to break the lease - request the property (SFH) or unit (MFH) be delivered to you vacant