Investor · Dubuque, IA · Member since 2015 · 88 posts · 19 votes
I am purchasing a duplex and the seller contacted me and asked what I thought about him placing a tenant before closing. I know that it is easier to have a tenant In place right away but I will be living in the other half of the duplex and want to know who I am dealing with. I have an application and lease that I am sure he does not have (I have seen his lease agreement before). Its not a horrible lease agreement but I have a lot more in mine. I suggested that he do a month to month since closing will be early in April. Is this the right way to go about this or what other options do I have?
This would concern me greatly. The seller only needs to get the first month rent and he benefits. You will have to deal with the aftermath. I would demand that the tenant pass your screening criteria before placement. If the seller places a tenant that you do not approve of I would walk away from the purchase.
This would concern me greatly. The seller only needs to get the first month rent and he benefits. You will have to deal with the aftermath. I would demand that the tenant pass your screening criteria before placement. If the seller places a tenant that you do not approve of I would walk away from the purchase.
I think you have the right idea going month to month as you want to vet tenants yourself, especially since you are going to owner occupy and it is essential you have a good working relationship with your tenants.
Sounds like former owner either needs the rental income or thinks he is doing you a favor, but nothing replaces vetting tenants yourself!
Make sure at closing you get an estoppel agreement.
Think of this, what benefit or interest does a seller have in placing a tenant if they are confident the property will sell? This seller is giving you a red flag. His lack of business sense could cost you months on unnecessary headache. Tell him no and monitor the situation closely.
The seller could also be putting in a friend of his with a criminal record , who work nights and partys all day , has 3 pit bulls , and 4 girlfriends . Or the seller could be leasing it to himself .