Greetings BP Fam,
I am currently in negotiations with a seller regarding a rental property. I do not wish to keep the tenants in place because I have already learned from the seller that they don't pay on time and when I viewed the house it was clear that they were not clean folks. Seller wants to sell immediately and if she has to get them out it will take her another 2 months. The tenant's lease is not up until Jan 1 2016. I am still waiting for seller to send me copy of lease. So how do I go about ensuring I have the ability to 'force' these tenants to leave come Jan 1 2016? Is there anything I need to put in the contract to ensure a smooth transition? How do I word the fact that I will be entitled to november and december rent? What about security deposit? Seller mentioned she will do a final walkthrough before settlement to clear her obligation and that tenants aren't entitled to a security deposit. But what does have to do with me because I will be incurring a property that is need of repair due to YOUR tenants? Any advice and pointing me in the right direction would be great.
Baltimore Maryland landlord tenant issues
Thanks in advance!
Hi @Eric H. . Yep, you've definitely found a motivated seller! Make sure you are well compensated price-wise for taking this problem off of their hands, including a reduction for the 2 month's rent you have to try and collect and the damages you've already seen + a huge % for what they still haven't wrecked!
Have the security deposit transfer to you at closing like normal. Ask for all paperwork re: non-payment of rents. Issue a pay or quit as soon as you own it. In my experience, the behind don't leave when they are suppose to. Better to have a removal pending, IMO.
Are you buying this conventionally? Creatively? After seeing the condition of the place I would try and reduce the PP. It always costs more money and takes more time than we think to get rid of folks and get rent-ready again. Good luck, bud!
@Steve Vaughan Thanks for the prompt response. So the security deposit is mine. Yeah that's what I thought. Disclosure: this is my 1st rental. What is a pay or quit? The deal is good at the PP I'm at. We have been negotiating for over 2 months now. I'm using my solo 401k to purchase. I have also been tossing around the idea of cash for keys. Can I do this before closing?
A 'pay or quit' or 'pay or vacate' is a 3-7 day (depending on your state law) notice to the tenants to pay the amount owed or vacate. It's the first step in eviction in most states. I would try and look up my landlord-tenant law online for MA.
No, I wouldn't give the tenants any money before closing @Eric H. . What if you end up not buying it? You also don't want to solve the sellers problem too soon, right? May not need you anymore!
When you do own it, cash for keys can be a great way to rid yourself of tenants. Especially in blue states like ours. Just don't give them the $ until they are out!
If you notice any type of nuisance or neighbor complaints, that can be a means for early eviction. Review the lease and try to find a loop hole. My inherited lease didn't give me much and I have to wait until April 2016 to not renew the lease. Meanwhile the tenant is paying late up until the sheriff has to show. We have to accept the full rent late if they offer it, and cancel the eviction. A nuisance is not related to the rent at all. Good luck!