Rental Property Investor · Brawley, CA · Member since 2018 · 23 posts · 4 votes
Hello everyone! I'm certain someone out there has had experience with this. What is the best way to solve the issue of bad tenants occupying a house I'm putting into contract? The house/contract will be assigned to a new buyer. The seller did express he was reluctant to not renew lease for fear of tenants trashing house. Seller said tenants pay their rent on time but the upkeep of the property leaves a lot to be desired. There hasn't been a lease renewed with them for years, leaving them month to month.
Should we wait to assign & let new buyer do as they wish with tenants?
When letting the tenants know I'll be showing the property (hopefully once) will that notice have to come from seller or me since I'll now have the contract (as it's in 30-45 day escrow?)
I'm worried the tenants will not be cooperative & I'll need to get this assigned asap.
Bakersfield, CA · Member since 2016 · 378 posts · 307 votes
8y
Should you wait? It's up to you. If you assign the contract to a new buyer, that new buyer will have to take the property with all the obligations of those tenants, which will yield either a smaller overall purchase price or simply make it more difficult to assign. The assignee may request the tenants be evicted prior to close of escrow, which in California might take a couple months or more if the tenants are still paying on time. You can also just wait for the seller to evict before you get it into contract, but you might lose the contract by then (the seller can change their mind by then, for example).
Regarding notice of entry to show the property, that MUST be signed and posted by the CURRENT OWNER. They can probably have their property manager do it on their behalf, but it must be THEM, NOT YOU. Being "in contract" to buy a property does NOT give you ANY rights over the tenants.
Finally, welcome to the wholesale world. If it was easy everyone would do it. Uncooperative tenants are part of the game. Good luck!
Realtor · Mountain View, CA · Member since 2017 · 120 posts · 108 votes
8y
Be sure and check with the city about just cause eviction laws. Some cities have rules about tenants having he right to stay after a property is sold unless the new owner is moving in. Some cities allow new owners to ask the tenant to leave but have to pay relocation costs. It is not everywhere, but you should check just in case it applies to your house.