Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Jarvis Naylor You must honor the current lease and all its terms. If it's a month to month lease you can give notice or negotiate the seller gives notice. It sounds like you are pretty far into a deal based on your other post but if not your Realtor should be able to help you with this or you have the wrong Realtor. Make no mistake, not all Realtors are experienced in investing and they are not a good fit for you as an investor. You should only use an investment specialist as your agent.
Ask for vacant possession if that fits your system better. Can even use a holdback to ensure they follow through. Their realtor will likely advise against it on their end though. I usually start at $10k but have never been granted more than $1k for a holdback.
Property Manager · Blaine · Member since 2015 · 209 posts · 276 votes
6y
@Jarvis Naylor short answer is yes. Feel free to DM me if you want to discuss MN landlord/tenant or if you have any other questions along the way. Best of luck to you. Maybe ask that the seller to provide proof that current tenant is current on their rent if you’re still under contingency.
Real Estate Broker · Hugo, MN · Member since 2016 · 688 posts · 596 votes
6y
@Jarvis Naylor yes, you must honor the existing lease. If they are on month to month you often can have the owner give them notice once you clear inspection.
Typically the seller will provide a check for deposits plus interest and prorated rent collected at closing (separate from title company funds).
Your other options are to wait until the lease expires and non-renew (section 8 has some additional requirements) offer to pay the tenant to leave before the lease expires, if they are non-paying or violating the lease eviction may be the option of last resort.
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Jarvis Naylor You must honor the current lease and all its terms. If it's a month to month lease you can give notice or negotiate the seller gives notice. It sounds like you are pretty far into a deal based on your other post but if not your Realtor should be able to help you with this or you have the wrong Realtor. Make no mistake, not all Realtors are experienced in investing and they are not a good fit for you as an investor. You should only use an investment specialist as your agent.
Rental Property Investor · Minneapolis, MN · Member since 2019 · 25 posts · 11 votes
6y
@Amber Gonion thanks for the information. I think you are absolutely correct. I don’t mind keeping the tenants but I know the lease agreement may be to relaxed in areas such as smoking in home which is a No No for me and my properties so certain things I want to change but I have no problems at this time with keeping the current tenants other then smoking and certain things like pet requirements. I did see a dog during the showing. Thanks for your time it’s greatly appreciated Amber!
Rental Property Investor · Minneapolis, MN · Member since 2019 · 25 posts · 11 votes
6y
@Tim Swierczek thanks for the advice And yes I’m about 5 days from deal being finalized. Moving forward I’ve definitely realized not all realtors are in the best interest of the investor, so I plan on future deals really being with someone that shares the same concept and passion thanks again Tim
Investor · Minneapolis, MN · Member since 2016 · 254 posts · 228 votes
6y
Agree with above.
If tenants have been smoking inside the damage has likely already been done & your options are to either renew if everything else is ok, or not renew leases & try to mitigate this by cleaning/replacing carpets, cleaning/painting walls - can be a pain.
If the deal is really sweet maybe it'd be worth it to sit & wait out a year long lease if you're otherwise breaking even. Otherwise you might just look for month to month specifically to make things easy. Careful to review leases, some specify greater than 30d notice must be given, just something to keep in mind.
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
6y
We just closed on a house this month that had a tenant in place. We just gave notice yesterday of a rent increase but have also made some repairs/improvements. They are on a month to month so hope they stay. The rent is low but it cash flows...