Purchasing to owner occupy with existing tenants

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Purchasing to owner occupy with existing tenants

Kira Voden
New to Real Estate · Milwaukee · Member since 2023 · 23 posts · 6 votes

I'm putting an offer in on a second duplex in Milwaukee, WI which is currently occupied- one tenant on m2m one in a year lease. We are aware to get owner occupant financing the m2m tenant needs to be out within 60 days. Has anyone run into any issues/have any advice on how to make this a smooth transition? Also wondering if it is possible to transition the year tenant to our lease or if they stay on the lease they signed with the last owner?

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  • Charles ClarkBusiness Member
    Real Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
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    @Kira Voden

    Congrats on your second duplex — that’s awesome momentum!

    Yes, with owner-occupant financing, lenders usually require one unit to be vacant or ready for occupancy within 60 days of closing. Here are a few tips to help the transition go smoothly:

    For the M2M tenant:

    • Give written notice immediately upon accepted offer (if allowed during escrow) or request seller to issue it before close — timelines vary by state but in WI, 28 days is standard for notice unless otherwise stated in the lease.

    • Offer cash-for-keys if needed to encourage cooperation and timely move-out. Even $500–$1,000 can save you major delays.

    • Do a walkthrough before closing if possible to ensure the unit will be truly vacant and in good shape.

    For the year-long tenant:

    • Their lease automatically transfers to you — you step in as the new landlord under the same terms until it expires.

    • That said, you can offer a new lease (e.g., your template) but it must be voluntary. Many tenants are open to signing a new one if it includes small perks or clarity.

    • Make sure to send a notice of ownership/management change post-closing, including where to pay rent, emergency contacts, etc.

    Congrats again — sounds like a great step forward. Let us know how it goes or if you run into any snags!

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  • Gregory Chadwell
    Real Estate Broker · Milwaukee, WI · Member since 2015 · 299 posts · 90 votes
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    In the offer should be and addendum R for rentals and you can request vacancies or vacancy notice given by the owner. 

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  • Patrick O'SullivanBusiness Member
    Property Manager · Phoenix, AZ · Member since 2024 · 555 posts · 210 votes
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    @Kira Voden For the m2m tenant, giving notice early (or having the seller do it during escrow) can really help keep things on track. If they’re not super motivated to leave, offering a small cash-for-keys can go a long way. As for the year-long lease, that one sticks you, just become the new landlord under the same terms. You can always ask if they’d be open to signing your lease later, but it’s totally up to them.

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  • Rebecca KnoxBusiness Member
    Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
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    Like others have said, in your offer specify what is required. 

    Many times, we have offered cash for keys to encourage a peaceful transition. If the current 1-yr lease is not a WI Legal Blank lease but some generic form, then I would most definitely have the current owner have them sign your new WI LEGAL BLANK lease prior to closing. I write all of this in my offer to purchase. 

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