A lot of the properties I’m searching on the MLS already have tenants in place with lease agreements. I plan to owner-occupy one of the units, so how would I handle this situation? Do I wait for their lease to expire? What if they have 6 months left on their lease? Can I ask the previous owner to terminate their lease?
You could ask to review their applications and leases. If they went through a decent screening they may not be the worst. I’d ask a lot about seller motivation though to find out if the tenants are a problem. So many house hack horror stories begin with “my inherited tenants are causing x”.
@Jerome Morelos If you need one of the units to be vacant for you, these are a few options:
- Put a condition in your offer that one of the units must be delivered vacant before closing
- Ask for the lease (as mentioned above) and see when it is terminated and check the renewal clause
- Offer cash for the tenant to move out
@Kenneth Cowan Great tip. .Will take a look into that. Thanks!
@Steve DellaPelle If I put that condition with my offer, would that make it less “attractive” to the seller? Also, can you explain the renewal clause? Thanks.
@Jerome Morelos I would say yes that it might be less attractive to the seller as this would just create more work for them but of course this depends on the seller and if he/she is motivated or not. It may be better to obtain a copy of the lease for each tenant and decide after reviewing it. It is also possible that they do not have a lease and are a TAW which would make it much easier for you.
One of my leases has a renewal section which states that written notice is needed within a certain time frame (30 days) from the termination date to declare whether or not the lease will be renewed. This may help you as well.
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