Realtor/Builder · North Augusta, SC · Member since 2013 · 128 posts · 29 votes
Ok folks, I bought a quad at foreclosure auction that currently has tenants in 3 of the 4 units. What do I do with the tenants? Does the change in ownership affect the lease signed with previous owner? Should I post and/or mail notification of new ownership (send your checks to me)? Do I evict at end of lease or if tenant can't produce a lease? Just spitballing here and am interested to hear what everyone has to say. Some facts:
- I am in South Carolina
- I have read the SC Landlord Tenant Act to no avail
- I have searched the forums, also to no avail
- My "mentor" has no experience in the situation
- Spoke with foreclosure attorney - said to evict them and told me which magistrate to go see
Lakewood, OH · Member since 2013 · 68 posts · 23 votes
13y
You will have to honor their lease. Without a lease you'll need to give 90 days notice. Google the Foreclosure Tenant Protection Act for all the rules and possible exceptions (eg if the rent is below market value or they are family members of previous owner
In addition to that law, you'll have to check local or state ordinances
Rental Property Investor · Lexington, KY · Member since 2012 · 115 posts · 64 votes
13y
From what I know, I am pretty sure the lease goes with the property- not the owner. So based off of that, you would have to have a good cause to evict them.
Realtor/Builder · North Augusta, SC · Member since 2013 · 128 posts · 29 votes
13y
Thanks Zac P. I think that you're probably right, and if they are paying tenants I'm in no hurry to get rid of them. Just need to make sure they're paying the right person - me.
Lakewood, OH · Member since 2013 · 68 posts · 23 votes
13y
You will have to honor their lease. Without a lease you'll need to give 90 days notice. Google the Foreclosure Tenant Protection Act for all the rules and possible exceptions (eg if the rent is below market value or they are family members of previous owner
In addition to that law, you'll have to check local or state ordinances
Real Estate Broker · Gibsonia, PA · Member since 2013 · 828 posts · 260 votes
13y
I saw ur post earlier but didn't want to comment bc I don't know about foreclosure.
But I'm thinking u already got 3 out of 4 tenant. If they are paying u can hold off any renovations.
I bought a commercial retail with tenant. I spoke to them, they didn't want to move, practically begged me to buy it bc I'll keep 'em.
I asked for lease. It was landlord friendly ;) and they have been in business there 4 yrs. I just honored that lease. Retyped it, change names and date. Kept rent bc they signed for 2 more yrs ;). Bc commercial vacancy is more than yr. And the price was too good to pass.
Realtor/Builder · North Augusta, SC · Member since 2013 · 128 posts · 29 votes
13y
Jennifer,
Hopefully, I will inherit some decent tenants too! I just am not sure how to go about letting them know that I am the new owner. I hope to keep them if they will agree to the new leases. I would hate to incur a vacancy if it's not needed. Thanks for the insight.
Investor · Carlsbad, CA · Member since 2012 · 73 posts · 34 votes
13y
You should find out if the tenant paid deposit or not. If so, you need to recover it from the previous owner, because you're supposed to return them (after all the repairs) back to the renters after they move out.
Realtor/Builder · North Augusta, SC · Member since 2013 · 128 posts · 29 votes
13y
Jim Q,
That would be ideal. I just assumed that since the property was a foreclosure that the original owner would not be interested in sharing with me - deposits, leases, tenant info, etc. I have their info from the property records, I guess it wouldn't hurt to contact them. Do you know if they are required to sign over deposits. Do I have recourse if they won't? Thanks for the idea!
Investor · Carlsbad, CA · Member since 2012 · 73 posts · 34 votes
13y
What you can do really depends on the lease already in place. You should get hold of the lease. If one doesn't exist, you should sign new ones with the tenants. The standard CA lease says the agreement is with the owner who should keep the deposit. So technically if the tenant paid it, you're responsible for giving them back.
Saint Louis, MO · Member since 2013 · 17 posts · 3 votes
13y
Hi Shaine,
How did you work this out with the current tenants? Did you find the leases or did you have to write up new leases? If you wrote new ones, did you ask them how much rent they were paying (this seems risky)? I am debating buying a building like this at foreclosure tomorrow and am trying to get more insight.
Realtor/Builder · North Augusta, SC · Member since 2013 · 128 posts · 29 votes
13y
All,
Sorry for the lack of updates! Here's the skinny: by the time I got the deed recorded and gained access to the property, there were no tenants left. Problem solved (well, one of them anyway). Building has been thoroughly rehabbed and is now available for rent. Sorry for the lack of info. I sincerely hope that this didn't inconvenience anyone. Thank you all for the encouragement and advice!