Dealing with Tenants

7 Replies

If an investor is interesting in buying a property from a landlord and property has tenants already placed in there but the tenant isn't a good one , is it illegal to replace them with new tenants since you are now the new owner?

You have to honor whatever lease is in place.  If the lease is month to month or if the tenant is not in compliance, then you can typically give the tenant a 30-day notice to move.  The exact laws surrounding this vary from state to state, so you should read into more detail about the state you're looking to buy in before actually buying.

I agree with @Michael Siekerka . You inherit the tenants on whatever terms the previous owner had. Buyer beware, checking on this should be part of your due-diligence process.

Key in on your phrase "the tenant isn't a good one".  If this means that the tenant is breaking covenants of the lease then you have options.  You must work with them to make them become compliant or evict them based on the issues. 

All this means that you must become familiar with the laws for your jurisdiction or hire someone that is.

btw... you place instant biases when you judge as good or not good.  It is much easier when you focus on the issues and how to resolve them.  Keep the personal part out of the equation.  :)

No its not as long as you can site and prove what they are breaking on the lease and follow the laws for your state. You can start off by sending them a warning stating specifically what they are breaking and if they don't remedy the situation you can evict them. 

You have to follow the previous lease and therefore cannot evict a tenant because you don't want them. On the other hand if they are violating the lease (not paying rent etc). Than you can evict them based on your lease.

Follow the lease contract. You can only evict them for a cause. If they violate some of the policies there, then, you can file a notice of lease violation. If none, then, you follow whatever is written in the contract with regards to their stay.

Notice of lease violation can be filed if the following violation occur:

  • Your tenants are delinquent with the rent
  • There are unauthorized occupants in your rental
  • You want to enforce your No Smoking clause
  • Or your No Pet clause
  • Your tenant is causing a disturbance to neighbors
  • You have a tenant in violation for not maintaining the property as agreed. Tending to the matter early can eliminate a big expensive clean-up job
  • The tenant is storing an unregistered vehicle on your lawn
  • The tenant is damaging your property

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here