Rent Free Tenant

[Stacey Manley]

BP Family,

I'm getting closer to closing on my first investment property! I have ran into an issue that I could use some help understanding.

The property I'm planning on purchasing is in my hometown, a very small and relatively close-knit community. The estate has three owners, and I have accepted their counter offer. There's just one thing: apparently there is a tenant in the property who has been living rent free for 8 years. His grandfather was the owner of the property.

What is the proper way to address this issue upon closing?

Thanks in advance!

[Andrew S.]

@Stacey Manley you could make the purchase contingent on receiving it unoccupied (in other words, let the seller deal with removing the tenant).  If you finance the purchase, your lender may insist on this as a condition of lending.  

As far as convincing a person who has lived in the house rent free for 8 years to either move out or pay market rent: good luck with that!  It's possible, but I would not like my odds in that scenario.  I don't know about Nebraska, but in some states, this could drag on for a very, very long time....