Tenant lease ends day of closing, I want him out
I close on a property this Friday, the old owner's lease with a tenant ends this Friday. The tenants has no intention on leaving however he knows I plan on renovating and increasing the rent. Do I have to go through eviction to get him out? Or is this considered something else given that I do not have a lease with him?
#3 Managing Your Property Contributor
Hopefully you asked for it to be delivered vacant. If not, it might be too late. You can talk to the seller and if the tenant isn't out, ask to delay closing.
Why do you want him out? How do you know they have no intention of leaving? I often raise rents to market rate without rehab on long term tenants. They usually don't want to move and will pay market rent. Does the lease automatically renew, if notice isn't given? In MO you'd need to give a 30 day NTV, as the lease transfers to you on a m-m, if he's still in the home at closing.
-
Real Estate Agent Missouri (#Notary), Kansas (#2021XXXX), and Missouri (#20017XXXX)
Quote from @Laura Marks:
Why do you want him out? How do you know they have no intention of leaving? I often raise rents to market rate without rehab on long term tenants. They usually don't want to move and will pay market rent. Does the lease automatically renew, if notice isn't given? In MO you'd need to give a 30 day NTV, as the lease transfers to you on a m-m, if he's still in the home at closing.
He is unable to afford market rent and has a big dog and the place smells like dog urine. It doesn't need much rehab and I would rather not let the dog destroy the place. Sounds like I am on the hook to keep him mo-to-mo to start.
Thank you for the replys
I would try really hard to talk with your real estate agent and see if there is a way to get the property delivered vacant. The delay in the deal/ cash for keys you may have to negotiate splitting with the old owner may be cheaper than having to evict the tenant or deal with a drawn out move out timeline.
has a big dog and the place smells like dog urine. It doesn't need much rehab and I would rather not let the dog destroy the place.
Sounds like that ship sailed!
If you end up closing with him in, based on the terms of the lease and the laws in your state, notify the tenant of the rent increase as @Laura Marks stated. If he can't pay he will need to vacate. You could offer cash for keys in lieu of eviction, but I wouldn't bring that up unless you are able to convince him to leave otherwise. In this case I would highly recommend delaying closing depending on the local eviction laws. Put that pain on your seller OR use it as a negotiation point if the house was supposed to be delivered broom swept and vacant - $10k off at closing could make the eviction worthwhile.
Your actions are going to largely depend on a combination of your purchase agreement and the lease (which transfers with the sale).
Its a little late in the game to be figuring this out - do you have an agent representing you? If so you should ask them, and if they can't help ask to talk to their broker.
Without the benefit of seeing the contract or the lease its hard to know the specifics of the situation, but I would try really hard to not close until the tenant has vacated. Does the contract say the property will convey vacant, free of personal property, and in broom swept condition? Or was it specifically subject to the existing lease/tenant?
On the day of closing, start the eviction process. Since you are new to this, I highly recommend you hire an attorney to ensure it's done properly and professionally. The tenant will likely disappear once they see you're playing hardball.
