We're buying a 2 unit that we're going to completely rehab and the tenants in the 2 unit are month to month. We're in Pennsylvania. Do you think it will be an issue to get them out after we close (a short closing is probably part of the reason we won the bid), or should we push them to get the renters out before we close and risk losing the deal?
I guess the current tenants have been in there for 7 and 12 years on a verbal month to month basis..
Are there any unforeseen issues you can see? Or some tips you can think of if you were in this situation? Thanks for any advice!!
It depends if you are willing to take the risk of a possible eviction. Most people will leave without damaging the property. The few that fight it in court will swear the rent was prepaid for 2 years.
I would request the current seller to obtain a written lease with the tenants as part of the sale based on the terms they say are in force. At a minimum, I would get a written disclosure from the seller and/or hold some money in escrow until existing tenants are gone.
hey John! Thanks for the info.. I spoke to my wife and there's actually no lease at all (it was verbal and I guess they've been there for 25 and 8 years, not 12 and 7), so would your advice be the same?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing