Do I have to keep existing tenants ?

[Motun Ayo]

My offer just got accepted for a property with 2 existing tenants. Part of my contingencies was the rent roll and inspection but on reviewing the rent roll, the rent is little compared to the market value for the area. Do I have to keep these tenants or can I give them grace till the end of the year since their leases are still valid till March 2024 ? What are my options. I appreciate your feedback. 

[Daren H.]

You will have to honor the lease as long as they are complying with it until it expires. You should look at if the current rent pays for the property sufficiently at your current purchase price. In other words, is it a good deal at current rents. If it is, and will become a great deal later when rents are raised, then it might be worth seeing it through. I have bought properties with tenants and the deals were good enough for me to wait the tenant out.