Non Renewal of Tenant

[Daniel Hansson]

Hi everyone... I’m new to bigger pockets and new to real estate investing. I have a question regarding a potentially inherited tenant.

I’m set to close on a two family property in New Jersey. One of the two units is currently occupied by a section 8 tenant. I was originally advised that the tenant wished to stay long term. After my original offer was accepted the sellers advised that the tenant verbally expresssed their desire to vacate by the end of the year. I personally don’t mind closing on a vacant property since it would allow me to place my own tenants in each unit, but my concern is inheriting a section 8 tenant who “verbally” notified they would leave... but then doesn’t leave or causing any other headaches. I have no experience with section 8 tenants or with closing on a property under these circumstances.  I don’t want my fear of an unknown to hold up the deal  

Any suggestions on how to proceed or how to ensure the tenant is leaving? I appreciate any and all feedback.  

Thanks!!!

[Patricia Steiner]

BEFORE you close, submit a Contract Addendum to the Seller advising that "all tenant notices are to be submitted in writing 10 days prior to closing."  Be sure to obtain all executed leases currently in place as well as the rent rolls (to show their payment history), and any screening/application information.  If leases are not in place, make that a condition too or ask that the building be delivered vacant/unoccupied to you at closing (put the month-to-month notice and termination process on the seller). 

BEFORE you close is your chance to have it your way when you do.  Do what's right for you now.