Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago on . Most recent reply

User Stats

26
Posts
10
Votes
Marcus Payne
  • Rental Property Investor
  • Auburn, AL
10
Votes |
26
Posts

4 unit under contract, month to month tenants. No Leases /GA

Marcus Payne
  • Rental Property Investor
  • Auburn, AL
Posted

Hello BP! I finally have my first deal under contract! I knew going into the deal that tenants were m2m but figured i'd just change that immediately after the current leases were up considering I want longer term tenants. Well my agent just sent me a text letting me know that tenants are not in any agreement to live there. I can see this being a problem immediately after closing. Any input/recommendations would be helpful. 

Most Popular Reply

User Stats

2,086
Posts
2,140
Votes
Andrew B.
  • Rockaway, NJ
2,140
Votes |
2,086
Posts
Andrew B.
  • Rockaway, NJ
Replied

There is no problem. Oral month to month contracts are perfectly valid, and transfer along with the property. in fact, this is nearly an ideal situation since month to month contracts give you more control of the property, especially with inherited tenants who we assume were not properly screened when placed. Under no circumstance should you give inherited tenants a term lease unless you have screened them after taking over. You should have tenants and landlord fill out an estoppel agreement that states what current rent rate is and identifies the amount (if applicable) of any deposit or last month rent. (make sure your contract specifies that you get deposits and pro-rated rent when you purchase)

Only thing you can consider requesting is that the tenants be put onto a new month to month lease. the benefit to this, is oral leases can only convey rent amount. this lease is created by accepting rent from the tenant every month. every other stipulation defaults to state law. this means tenant can show up tomorrow with 3 pets and you cannot do anything about it (except provide notice of lease termination) whatever you do keep the current tenants on month to month.

Loading replies...