So I have an interesting situation. I am currently trying to buy my first rental property, which is currently occupied, during the home inspection we found human feces on the floor and walls in two bedrooms and the hallway. I initially was just going to assume the lease and keep the renters but asked the current owners to ask the current renters to leave for breach of lease before I purchase the home. It states in the current lease that the property is to be kept in a sanitary condition at all times and I can't really thing of anything more unsanitary.
The problem is, the owner sent a message to they're lease agent, to ask the current renters to move out for breach of the lease and the leasing agent took it upon herself to tell the renters to clean it up and the lease would be honored. The owners then sent a 2nd message to the leasing agent and she emailed back saying they don't have grounds to evict the current renters.
The owners are very nice people and they'd prefer not to go to battle over this but what would be the next steps. Do we hire a attorney? How do I set this leasing agent straight? Doesn't she work for the owners? Who is she to just do what she wants? I feel kinda helpless since I don't owner the property yet, just trying to get rid of the current renters.
I thought about just buying it with the renters and then me getting rid of them but if they have it cleaned up by closing and I assume the lease I would also assume I would have to grounds for eviction at that point.
This is an interesting foray into my first rental property.....any help/advice is appreciated. Thank you.
You either have to negotiate in your purchase agreement that the seller remove the tenants or you have to deal with this on your own after you purchase the property. And if the seller is going to have to evict someone or take on legal liability to do so it makes no sense for them to do this....
To answer a couple of your other questions:
- The leasing agent is not your representative. They are likely in contract with the seller or the tenant and don't have any reason to meet your demands.
- If you purchase the property you are assuming the existing lease. If the place is "sanitary" when you take ownership they are not in breach of their lease. You can't go after them for violating the lease agreement.
- If you take ownership, and if the lease is a month-to-month lease you could choose to not renew and get them out.
I am not sure how good of a deal this is or if you are in contract but if I were a seller and had other interest I would be considering different buyers. On your end - the winter can make places hard to rent. For your first property I wouldn't be fighting to start with a vacant unit before winter.