First Flip - What if tenants don't leave?

Question

I will be getting the keys for my first fix and flip property on the 14th. The house currently has tenants living in it, who are on a month to month lease, which ends on the 14th.

What steps could I take to ensure they leave on time, and what would I need to do if I find that on the 14th they have not left and perhaps don't intend to?

Any and all advice is much appreciated.

Michael Plante · Answer

If it were me I would delay closing until the tenants are out

Evan Polaski · Answer

@Jake Abbatacola, are you sure the current owner has provided formal, legal notice that the lease is not being renewed and will terminate on Jan 14th?  This is the first step, and a text message or conversation won't cut it.  It should have been mailed a couple weeks ago, certified with signature confirmation.

If notice has not been given to the tenants yet, I would make sure the current owner does that, as there is likely a 30 day notice period required. In this instance, you will be stuck with them through Feb 14th.

If notice has been given, I would not lose to much sleep over it.  As noted, most people are good, honest humans.  But it can't hurt to talk with an attorney, if you are very concerned, to understand what the process is.

Lastly, regarding delaying closing, even 1 day, it doesn't hurt to ask. If the seller pushes back, you back off, but the seller will not be able to close with a different buyer 1 day, or even 1 week, after you are scheduled to close.  If he pulled out of your deal, he will need to relist or remarket the property, and even if he gets an offer same day, it will be a week and a half at best before that new buyer can close.

Nicole Heasley Beitenman · Answer

Cash for keys. Quicker and less time-consuming than an eviction, plus it saves the tenants from having an eviction on their record.

Joe Splitrock · Answer

Most people are honest and will just leave when asked. If their lease move out date is the 14th, then they are in a holdover situation as of 12:01PM most likely. If they are not gone on the 14th, serve notice on the 15th. Not 30 day notice, but whatever the minimum is allowable by state law. Since it is leave hold over and not lease termination, it should not need to be 30 days. Usually 3, 5 or 7 days is typical. Talk to an attorney and have a process server deliver notice. This is not a DIY process.

Michael Ablan · Answer

@Jake Abbatacola - They should be giving you a 30 day notice that they're leaving.

If they don't want to leave, then you need to give them notice that you're choosing not to renew their lease.   Hopefully you have good people who can respect your wishes and move on.  Otherwise you have to go through the courts and evict

Jake Abbatacola · Answer

I like that idea, but I would lose the property for sure.

David Avery · Answer

Jake, wondering what liability the owner has to close with you on the 14th.   Does keys need to be given to you?

Does vacant property that is broom clean need to be done?

Maybe see if there is even a written lease with the tenant?

Hopefully the seller is going to not close until it is vacant.

or maybe the buyer won't close until it is vacant.

I hate for you to lose the deal, but an occupied home is hard to work in!

Jake Abbatacola · Answer

Thank you for that info. Sounds like a good route to take. I've interacted with the tenants twice now and they've been very pleasant, so hopefully this doesn't become an a real issue.

David Avery · Answer

Do wholesalers take responsibility to have properties vacant before closing?

Rick Estacio · Answer

If you're taking with tenants, you should do your research on eviction laws in your area and whether local or federal eviction moratoriums will prevent you from evicting the tenants if they don't leave voluntarily.  In my area, NJ and NY, all evictions for non-payment of rent are currently illegal and this "eviction moratorium" is scheduled to last for at least two months until after the governor declares the COVID crisis over.

First Flip - What if tenants don't leave?

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