How do you get M to M tenants to move out by closing date

Question

What strategy would you use to get month to month tenants to move BEFORE closing.

4plex. 3 are month to month at half market value. Need those three move out so I can renovate to get max value.

TIA.

Christopher Prince-Barry · Answer

Thank you to all responders. I did not move forward with the deal and received a healthy lesson in rent control and cash for keys in East Orange NJ in the process!

Jonathan Greene · Answer

But for a couple of responses, this is some of the worst advice I've ever read and does not apply to NJ. First, your agent should have told you the parameters of buying with three month-to-month tenants and you could have written it into the contract to deliver vacant, but in Livingston, they probably would have gone with a different offer. Sometimes you can get the current owner to at least serve the notice to quit, but if they don't want to ruffle feathers, you have to wait until you close and start the process and in NJ, it is a very long process. Advice like cash for keys is laughable and hasn't been practiced effectively in NJ for years because the renters know that the state is very tenant-friendly and will request 15-30k for cash for keys when it used to be like 2-4k. The evictions are so backed up from COVID and the moratorium that you can not bank your profits on getting tenants out in a speedy manner. When we have way undervalue tenants in place and an owner looking to house hack or renovate, we just write "to be delivered vacant" into the contract and we offer more because of that to incentivize them to do that.

Jim K. · Answer

See, all of you guys, with the exception of @Matt M., haven't been here in the forums long enough to recognize what the OP is actually asking. But this is what I mean when I talk about ugly things in real estate.

@Christopher Prince-Barry

So you've closed on this place already and you want them out before closing so you can get the reno started immediately. Bad news, Chris. The "lord" in landlord doesn't extent quite that far. If New Jersey law is anything like Pennsylvania law, you'll at least have to give them 30 days notice to find a new place to live. Otherwise, they're going to be sleeping in a cardboard box next to a dumpster. The government and most people feel that's not as productive as giving them that 30-day notice.

Bruce Woodruff · Answer

There are these big burly guys called Sheriffs that have very little patience. As soon as you can, bring them in....legally of course. Tell the tenants that you will have them thrown out. Unless you would prefer to pay them to move.....but I don't know why you would.....

Scott M. · Answer

Before closing?  Make it part of your purchase contract and then the seller is responsible to do it and you don't close until it is vacant.  Could not be simpler : )

Wayne Brooks · Answer

It’s not usually going to happen, unless you offer a Huge non refundable EM.  No seller is going to want to empty their building in the event you don’t actually close.  It’s not enough difference in money to make or break the deal anyway.

Max Vishnev · Answer

Are you under contract to purchase the 4-plex with tenants in place (rather than making your offer contingent upon the units being delivered vacant)?  If so, you can't issue them the required 60-day notice to vacant until you're officially the owner.  And technically, you shouldn't be communicating with them either, since deals fall through for many reasons, and you haven't closed yet.  It's really up to the current owner what they do or don't do between now and closing date.  For example, you could try asking them to issue them the 60-day notice while you're still in escrow to give you a head start.

You should consult with your RE attorney on the best path forward.

Anjali L. · Answer

@Christopher Prince-Barry yes I am in NJ. Hudson county

Christopher Prince-Barry · Answer

Are you in NJ also? There may be different strategies based on location

Matt M. · Answer

@Christopher Prince-Barry

If you’ve given them proper notice, and they don’t move out, file for eviction.

How do you get M to M tenants to move out by closing date

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