Existing Tennants?

Rehabbing, Fix and Flip, Rental Properties
1

I just got a contract on a a 2 family unit. It was a short sale and the bank approved my offer just hours before the property was to be sold at the Sherriff’s sale.

The two tennants knew the property was in forclosure and on the way to the Courthouse steps so they decided to leave and are actively looking elsewhere. I asked if they wanted to stay on, but both had decided to move on. One used the July rent as a deposit on another house and the other just wants to move closer to her relatives.

Now for the question. They both are a bit vague about the actual moveout date. In each case it is “just a few weeks” or “as soon as I find another place”. I need to get these properties back in rentable shape and on the market ASAP to get the cash flow started.

Assuming I close on the property July 31, how long should I give them to be out? 3 days? 10 days? Or should I ask for a months rent on the 1st and then refund the balance when they leave? I think the chance of getting any rent from them is nearly zero. I think some serious pressure needs to be applied in the form of a firm date, otherwise their movment might be a gradual affair with lots of junk/residue/stuff left behind.

Also what are the legal aspects. Since they were living there (w/o a lease from the previous landlord) when I closed on the property, they aren’t really my tennants and we never had a lease? On what grounds can I evect them.

Any thoughts?

2

It sounds like if they don’t have a lease you can simply give them 30 days notice to vacate.

3

what leo said. It sounds to me like they’re trying to ride out your duplex for free. Propertymanager will have some good advise for you on this subject.

4

Immediately send each one a “Pay Rent Or Quit” notice. Even if it’s not enforceable it may push one or the other out the door FAST. Then start eviction as soon as legally able. Do not give them any grace period. If they want to stay for any length of time, they need to pay rent up front.

jmd_forest

5

You need to follow the law for your state/locality to the letter. Specifically, you need to know what your state assumes if there is not a written lease. The law usually considers that a month-to-month lease. Talk to your real estate lawyer (or another successful, experienced investor) and find out EXACTLY what the procedure is. Then, demand the rent and start the eviction procedure immediately when they don’t pay.

Good Luck,

Mike