How to purchase a Rental with Tenants already in place

[Maurice Blackledge]

Hey BP,

I am looking to buy a property that already has a tenant in place until 2021. I purchased my first property with tenants in place and though one of them has been great, I had to evict the other.

My question is if there is a way to protect myself from inherited tenants in the buyer's agreement? Perhaps ensure they are out by the time of close OR have a clause around a new lease?

Open to ideas!

Thanks in advance!

~Maurice

[Alex Olson]

Originally posted by @Maurice Blackledge:

Hey BP,

I am looking to buy a property that already has a tenant in place until 2021. I purchased my first property with tenants in place and though one of them has been great, I had to evict the other.

My question is if there is a way to protect myself from inherited tenants in the buyer's agreement? Perhaps ensure they are out by the time of close OR have a clause around a new lease?

Open to ideas!

Thanks in advance!

~Maurice

 Ensure that during due dilligence you are able to review leases and payment history of the tenants. If they are willing to share background and credit scores that is helpful too.