Purchasing rental with no lease agreement
How would it work if I were to purchase a rental property that the owner does not have a lease agreement for. Owner clams the tenants have lived there for 7 years and that they pay on time. What steps or documents can I bring into the deal to protect myself in this situation?
Most Popular Reply
Get an Estoppel Certificate as part of your diligence from the tenant saying there is no lease in place. Problem solved. At that point, I imagine your state has some default lease terms (in Texas, it's basically a 30 day lease). What you don't want to do is have your new tenant show up with a document they claim is their lease for $25 a month for the next 10 years. Then it's their word against the old owner's word and you have a mess on your hands. The estoppel cert solves that.