I have a deal I am about to close where I get 7 properties, all with positive cash flow, equity and owner financing with no cash out of my pocket. I want to have the existing tenants sign new leases with me. I think most of them are good tenants, but who can I deny a lease to?
I am concerned about smokers and pets, but also about dead-beats.
Any help would be appreciated.
I would get a copy of the lease from the current owner and read it very carefully to see if there is a way to legally break the lease.
You should be able to deal with deadbeats via the current lease, and then incorporating the dispossessory procedures for your state. Same with pets, if they are breaking the lease by having one. Smoking – I have never heard of telling a tenant they cannot smoke in the house they are renting.
From what you’ve posted (which isn’t much) you appear to be getting a good deal, if everyone is paying on time, why upset the apple cart? Dealing with tenant eviction isn’t all that much fun and can be costly 
Good luck to you.
I guess my problem is, I want the homes to still be in good enough shape in a year to sell them without much repair expense. Actually it is quite normal, in this area at least, to not rent to smokers.
Shows you where I rent my houses LOL Now that I think about it, I don’t believe any of my tenants smoke, but I could be wrong. If they pay their rent and the yard looks decent, I stay out of their way.
So the homes are all rented and they are in good condition? Once again, why upset the apple cart?
IMHO, A year isn’t that long, if you evict someone you are looking at the expense of a vacant property. Assuming they leave quietly, you’ll need to clean up what has been left, paint, etc. (cha ching); and then, if you’re lucky, you’ll get a tenant right away with truly no guarantees that they will take care of your property any better than your smoker. Some thoughts.
I’m not trying to be a wet blanket, I’m just not sure why you would evict a paying tenant because they smoke to open yourself up to the unknown.
Food for thought and I wish you the best of investing!