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Sami Gren
  • Rental Property Investor
  • NJ
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Purchasing a property with a rent free tenant

Sami Gren
  • Rental Property Investor
  • NJ
Posted

Hi,

I am purchasing a property and there is one tenant in the building that is living there rent-free since they work for the owner , they told me that they either can have him vacate the property at closing or I can have him sign a lease and pay me the rent.

I was wondering how you would go about it how can I make sure he is going to pay after I purchase the property, is a possible for me to sign a lease while I still am only in contract and don't own the property , How would you go about in this situation?

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James Wise#4 All Forums Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
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James Wise#4 All Forums Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
Replied
Originally posted by @Sami Gren:

Hi,

I am purchasing a property and there is one tenant in the building that is living there rent-free since they work for the owner , they told me that they either can have him vacate the property at closing or I can have him sign a lease and pay me the rent.

I was wondering how you would go about it how can I make sure he is going to pay after I purchase the property, is a possible for me to sign a lease while I still am only in contract and don't own the property , How would you go about in this situation?

 Yes have him sign a new lease with you prior to closing. Then if he doesn't pay treat him exactly as any other tenant who doesn't pay. Toss him out.

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