Advice: Offering on first duplex- buyer says tenant missed rent

[Brian DePamphilis]

Hi All,

I'm in the process of in an offer on my first duplex. It's a duplex and will cashflow nicely in a growing area. It is in decent shape, and has tenants already which I'd prefer to keep in place at this time as I get up-to-speed becoming a landlord. One unit is tenant-at-will, lived there over 3 years and per the sellers agent, has always paid on time and in full at market rates...good news. The other unit, I was told upon my asking, "had an issue [paying rent] at beginning of covid when they were laid off, but are back on track now". I don't have much info other than that. The seller already used the last month rent that they'd had collected at the beginning, and their lease will be up Dec 31st (right around when I would be closing). It sounds like they expressed interest in staying, and I'd prefer to not have a vacancy right after I'd buy it. I'd be interested in what people recommend. Should I dig in deeper and ask more questions about the missed rent prior to making an offer? If I get the place, should I try to retain them and have them sign a new lease (providing another first/last)? Or just try to rent it to new tenants and risk a month or two of vacancy. Just curious if anyone has gone through anything like this. I'd be a first time landlord and have never inherited tenants, so not sure on what questions to ask. Massachusetts is also a very tenant-friendly state, so if they refused to leave/pay I know the process could get complicated and costly.  Appreciate any advice. Thanks!

[Carmen Pellegrino]

Just had this happen to us but we knew it was going to be an issue and wanted the tenant out anyway(slobs). I would go in assuming the worst and make sure you can manage. I am in Ohio and scenario went like this:

Closed end of August. Tried to contact all tenants about new lease and terms as all were month to month. Could not contact the problem tenant.

Sept 2 No rent received from them(good!) posted eviction notice-they finally called. We told them per the notice they had 3 days to pay or be evicted. No money came but lots of texts and explanations.

Sept 6 Filed eviction

Oct 19 court date and eviction granted

Oct 27 sheriff serves eviction

Month of November cleaning and renovating hoping to have rented by 12/15/20

Explaining this so you know what can happen. That's 3 months of no rent and added expense of cleaning and eviction. We knew going in and this property will still BRRRR great. Just plan for the worst and make sure you can manage with these costs and timelines. Obviously this will vary by state and local laws.