Rental Property Investor · NC · Member since 2018 · 108 posts · 117 votes
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?
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.
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.
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
6y
@Maurice Blackledge not to state the obvious.......make sure you inspect every room of every unit and accept no excuses about access or sharing of available information. All the best!
Rental Property Investor · Cambridge, MA · Member since 2016 · 634 posts · 415 votes
6y
If you aren't able to have a vacant unit at close, make sure you have a credit on your closing statement for the security deposit that should be transferred over to you at closing!
I've purchased one property where I inherited a tenant. I was very fortunate that she has been an absolute delight to deal with. I would also recommend (if possible) to see if you can line up a walk through, inspection, or another legitimate reason to enter the unit when the tenant will be there. I can usually tell pretty quickly if we are heading for a problem, or if they will be good to work with.
My very first duplex i bought 10 years ago i had an experience where one of the tenants paid me a bounced check a month after i got the property. I was freaked out at first being that it was my first property and i was already getting screwed but he did meet up with me and told me his situation with getting a divorce with his wife. Luckily he did move out soon after and i ended up using his security deposit to cover the month he didnt pay. After that i screen the tenants and havent had a problem since.