Purchasing a property with a tenant that does not have a lease
Bigger Pockets Community,
I need your help!! I am in negotiation for a property that currently has a month-to-month tenant under agreement, but not a lease. Does anyone have any advice on how to handle the situation? This property is a good deal, and worth the trouble, but need some guidance on taking ownership of a property with a non lease tenant. Thanks in advance!!
Most Popular Reply
Hi @Andrew Laing,
If I were you, I would amend your purchase agreement to have the property delivered vacant. Your risk exposure is high if not. The cost of an eviction is high.
How does the rent the tenant is paying compare to market? I suspect it's well under market. Either way, if you take possession with the tenant living at the property, you'll have to notify them that you're canceling their existing agreement and they'll need to sign your agreement or move out.
Aaron