Seller Placing A Tenant Before Purchase.... Without Asking
I am currently purchasing a 2-unit condo, that includes a studio and a 2bd 2bth unit. Closing will be mid-February. The studio became vacant in December. My plan was to raise rents and have the tenants start paying for utilities. Unbeknownst to me, the sellers/property managers placed a new tenant in the studio in mid-January without my approval, locking in a year lease, with the same rent, having the landlord pay utilities. Is this grounds to terminate the contract? Now I'm stuck with a tenant that I know nothing about who is paying less than I had factored into my cash flow analysis. Additionally, the tenants of the larger unit will most likely view the rent raise and the utility payment as unfair since the studio will not be getting the same treatment. What can I do in this situation? Can I make the seller/property management rescind their lease? Maybe a hefty seller concession to offset the cost?
This is a property located in New Bern, North Carolina. If any one knows of any state specific laws regarding this please let me know. Thanks!
Most Popular Reply
Were you already under contract with the studio vacant?
Did your contract include a Tenant Occupied addendum?
I believe you can back out if this is a deal breaker.
Maybe you can tell the seller your plan and have them get the tenant out for you.
Or maybe you just let it ride for a year if the numbers still work for now and the new tenant meets your screening standards.