PURCHASING WITH EXISTING TENANT - Posted by Fred

Posted by Long Beach Ed on July 18, 2001 at 08:36:24:

Here in New York you’d have to honor the lease and their encumberance should be reflected in a lower purchase price.

I’d tell them that you need the place for your crazy brother who is your partner in the house and is getting out of jail and needs a place for him and his teenage boys.

Say he saved up the money he made working at the prison laundry to help buy the place, but you never told him it had tenants in it.

Ask them what you can do to help them leave, and assume, at first that they don’t know they have any rights. Tell them that “psycho” will be taking up residence in the garage if they don’t get out. And you don’t want to see him get in trouble again.

When addressing tenants, make certain you always refer to problems as their problems, not yours, and remember to infer that all problems are caused by some third party and never by you…

They may assume you can throw them out and just leave or take an offer to have you pay for their moving expenses or some small price.

If they insist on staying until their lease expires, make certain you follow any rules your state has about notifying them of the end of the term. In some of the more socialist states, inaction on your part at the end of the lease buys the tanants another year.

Time to start learning and stay on top of things. Good luck.

– Ed

PURCHASING WITH EXISTING TENANT - Posted by Fred

Posted by Fred on July 17, 2001 at 21:16:03:

I need help like fast on this one friends. I am purchasing a property with an existing tenant under an active lease. Do I have to honor the existing lease? My thinking is that I will evict if I have to or pay them there initial deposit to move along. I want to rehab the house as soon as possible. Can someone give me the real world facts on this one please?

Re: PURCHASING WITH EXISTING TENANT - Posted by Travis (Dallas)

Posted by Travis (Dallas) on July 17, 2001 at 21:50:13:

In most States, you have to honor the existing lease.
Your idea to “pay” them to move is a good one. You can also tell them that when the lease expires you will have to raise the rent significantly or that you won’t renew the lease.
Good luck.
Travis