Tenants Out At Closing?
Hi all. I am looking at a duplex. Both sides are currently occupied. One side is in good shape, been redone in last 5 years, the other side need rehabbing. The occupants of the side that needs redone pay their rent, but not all at once, the owner stated she has to "bug" them for it and eventually the pay, but usually by the time they finish it is time to pay for the next month.
I dont know if we can get the rehab done quickly (with our work schedules) and I am afraid that if we let them stay we will never get them out. It is hard enough to evice in PA and they have children so I have heard it is even harder if they have kids. They can say they have no where to go.
If we decide to take this on can we write in the contract that the tenants on one side have to leave at the time of closing? They are on month to month leases. I live in PA and we are real newbies to this.
Thanks
Kim
If I was going to buy this place and ran across this problem I would put it in the contract that the owner must have the tenants removed before closing. Let it be there problem not yours.
you'll need to know what sort of lease they are on before you can evict them, if it's month to month, then a simple month's notice is all it will take.
I'd try very hard to get the current owner to ask them to leave - you may have to agree to rent the unit from him should your closing be delayed/cancelled; but I've used this before and it worked great.
He can tell the tenant that you plan to live in the unit and they need to be out by such and such a date.
If they want the security of not having to move becuase the house sells, they should be talking to a relator and buying - they are a tenant and you must follow the lease, but if you want them gone, then that is what should happen.
Even if the previous landlord had trouble collecting rent, that doesn't mean you will. Poor landlording is a quick way to modivate a seller to sell.
You've got all the right advice here in this thread. Ask the seller to evict them, but let him know that if the closing doesn't happen, you'll rent the apartment for X months or until he finds a new tenant.
But myfrogger is also right.
Or it might be worth considering a meeting with the problem tenants. Tell them that you plan on doing some repairs to the place, and that the rent will probably double when you're done. Then watch as they pick their jaws up off the floor and start packing. Just make sure that you have a very pleasant discussion with the tenants on the other side and tell them that you've heard great things about them from the seller, and hope that they'll continue living there for a long time to come. This is definitely a debatable tactic, but worth considering.
Good luck.
When I went to see the property both tenants were there. The wife of the slow paying tenant was there, she looked scared. The place was a mess! I dont think anyone ever taught her how to clean. Anyway, she asked me if they would have to move. I told her I was just looking right now, but her side needed multiple repairs (roof, ceilings in BR, DR; new BR sink toilet, etc) and if we bought we would fix all of these things and the rent would increase and it would be difficult to fix all of that stuff with renters in the house. I thought afterward I should have not said anything at all.
I also saw the other side and it was pretty good and told the renter there that she could stay if we bought.
Incidentally, the poor paying renters are paying 350/mo, while the other renter is paying 400/mo both + utilities. This is about the norm for this area. I dont think I could get much more, mybe $25. It is on the main street, there is no yard with the property and no parking, they park across the street in a Floral Shop parking lot. We live in a small town.
Kim
... It is hard enough to evice in PA and they have children so I have heard it is even harder if they have kids...
according to my lawyer, it's not hard at all as long as you have the proper clauses in your lease. naturally, if they 'know the ropes' it's more time consuming. I'd recommend finding a good re attorney to get you a lease for your future tenants. By the way, the lease I have is standard here in York County and apparently has been before every magistrate in the county and they all uphold all the clauses which are VERY strict against the tenants.
I'm purchasing a multiunit next month and I told the current owner that I need the one unit vacated - 3 people living in a VERY tiny efficiency for $60 a week, utilities included. I think not.
Keep them there, next month, if no full payment, 3 day notice, after three business days start eviction. Take any personal comments out. I would not try to rehab while they were there by the way, they will just mess it up or do worse if they determine you are going to kick them out.
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