Rental Property Investor · Cape Coral, FL · Member since 2015 · 47 posts · 10 votes
So, we are getting ready to purchase our first duplex tomorrow. I was just notified by the Title Company and current owners that the tenants moved out yesterday without notice.
Im curious as to how this should work out. We were suppose to have last months rent, security deposit, and pro-rated rent credited to us on the HUD.
The owner was suggesting keeping their last month's rent pro-rated until the day they left and security deposit (if unit is left in good shape). I'm getting ready to do a final walk through as well.
Since they left with no notice wouldn't they be on the hook for rent until it was re-rented or their lease expires? (March 2016) Im reviewing the current lease and all it says for Default/Remedies is to see the Florida Residential Landlord and Tenant Act, Part II, Ch 83.
Im reviewing that as well, but still being a new REI and Land lording, Im having trouble figuring out exactly what should happen. Any input is appreciated
Overall I suppose it's a good thing because we can start with new tenants and not inherit deadbeats. Guess this is my introduction of being thrown into the Land lording world.
Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
10y
That is great news for you now you can start fresh renovate the unit and pick good tenants. Do make sure escrow is crediting you security and last months and dont release funds until your final walk thru.
I would anticipate that you would get the deposit (and last months rent if the previous landlord collected that) at closing. You will have to check for damages from the tenant, as they could affect your deal (if the place is trashed).
As for as going after the tenants, almost everyone will tell you here not to waste your time. Even if you get a judgement against them, it will be nearly impossible to collect.
Guess your learn fast the value of tenant screening.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
Welcome to being a landlord. If this is your only surprise that ever happens, I want your blessings or whatever it is that you do to avoid having a house trashed, getting sued, having to file evictions, etc. Apparently, these people were not dependable so you are probably better off and will realize that in the future:) Forget about them and find someone that appreciates your permission to live there.
Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
10y
That is great news for you now you can start fresh renovate the unit and pick good tenants. Do make sure escrow is crediting you security and last months and dont release funds until your final walk thru.
Investor · Edwardsville, IL · Member since 2015 · 432 posts · 481 votes
10y
Congrats on your purchase. I would also suggest that you still get the copy of the tenant's lease and file. I would also get, if it exist, anything that says they sent to existing landlord saying they were moving out. i.e. Letter, text etc.
If you need a property management company, I would recommend Judy @ Milauf Abichon.
Rental Property Investor · Cape Coral, FL · Member since 2015 · 47 posts · 10 votes
10y
Thanks for all the input. I talked with the Title Agent and she said that the last months and security deposit could not be transferred to us because there is now technically no tenant. When I talked with the owners they said that they would only consider giving us 10 days of the prorated rent, but basically were saying there is nothing they can do. I believe they are planning to give the security deposit and rest of the prorated rent back to them. I did make the case that our deal had changed since we now are buying a place with no tenants and their unit needs to be repainted, re-carpeted, etc. Basically I'm not sure if there is anything I can do aside from negotiating with them to still transfer it over.
Aside from that the side they are currently owner occupying isnt even completely moved out of. (we are planning to owner occupy one side as well). So we are supposed to close tomorrow but they still have their boxes and furniture in there. If anything I suppose this is a great way to be broken into REI.
Attorney · Attleboro, MA · Member since 2015 · 412 posts · 165 votes
10y
Be glad they left. There are still legal issues though. What proof do you have that it is abandoned? Because the current owner says so? If the rent is paid for December, they could always reappear. If there is a lease to March, then that lease assigns to you as does the security and the responsibility to follow the law regarding its use and/or return.
If there is a lease, how can you rent the apartment until you don't get January's rent and/or do an eviction?
If the seller's insist on returning the deposits before the sale, you want copies of all of that so these tenants don't come back after you for something. If the seller's know where they went maybe they can get them to sign something confirming the apartment has been abandoned. I would think about doing a hold back on the purchase price until you get proof the deposit has been returned.
Then I would change the locks and renovate and look for my own tenants.
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
10y
Keeping the last month and deposit because there is no longer a tenant? Now is the time those things are needed. Who is the tenant going to come back to, to get an itemization of those things? Now is when it needs to be handled. It is to cover exactly this type of thing!
The deal has completely changed for me. I would not just be shrugging my shoulders in an aw shucks, we'll still close matter. Cough up the last month and deposit or you can keep it. I would at least delay the closing for about 60 days and let the dust settle on this issue. I have my doubts the sellers are being fully honest with you. Tread carefully @Ben Naughton!