I signed this morning on a multi-family property and later found that a tenant eviction was not as represented. The tenant is back from a mental health stay, threatening neighbors at 4 AM, etc. The tenant supposedly threatened to kill the current owner and burn the building down. I do not want to close until this is dealt with, as we went by to get a bid on a broken window today and ended up having several tenants stop us to let us know how concerned they were and that they were thinking about moving out. These were good people that I'd like to keep. My solution is to delay releasing 5% of funds for these 20 units until we have an agreed upon plan for resolution. Any ideas would be very, very welcome. Based on the sensitivity of this, I need to be a little bit careful with the details, but I'll attempt to answer any questions. Thank you in advance for any ideas.
Police should be notified of terroristic death threats.
Hire an eviction attorney and start the process. If the current owner is wiling go to the police and file a report for the threats as well. This will help the eviction process.
@Roland Jefferson and @Chris Field are right, in my opinion. Along with what they said, I would arrange with the seller to immediately have security cameras with audio installed in all public areas. Anything caught on video/audio can be used to help your case and get this person gone for good.
Be the good guy to all those good tenants and organize a system where they always keep track and report anything done by this other person. Enough police reports can make things happen. Also, they will see that you are proactive which can give them peace of mind that this situation will be ameliorated, keeping them from having to move out.
Thank you for the good comments and discussion. It's going to be an interesting month as we try to get a few things solved. We start work on the building next week and my first goal is to try to retain tenants who are upset by the current situation. We've just hired an attorney specializing in evictions and will start down that path on Monday. Meanwhile I'm interested in video cameras in the laundry room as we've had some users from the neighborhood sneaking in to smoke.