If Possession is later then Closing, what happens in between?

[Trace P.]

Hi everyone,

I'm currently in a contract where the seller needs the cash fast to close on his new home, hence he sets the closing date to be on xx Nov which is before the closing date of his new home. However, his new home will only be ready for him to move in 10 days later, hence I will only gain possession of keys 10 days later. This means that there is a 10-day transition period where the seller is staying in my property. While the seller agrees in writing to cover all utilities and damages made during the transition period, I was thinking if there is any other more definitive way to protect myself during this period... I am planning to start my landlord insurance from the closing date to cover myself, even though there will be no tenant for the next ~2 months after the seller moves out as I need to rehab and lease the property (i.e. I could have started landlord insurance later only when rehab is done and the property is going to be tenanted, but now I have to start it ~2 months earlier just to cover the transition period). 

Was wondering if anyone has any other suggestions on how to handle such a situation. Thank you!

Cheers,

Tracy

[Wayne Brooks]

Require a large deposit be held in escrow from the seller’s proceeds....$5-$10k along with an agreement for Stiff daily rates/charges if they stay over the agreed number of days. You need to start your insurance right away anyway so that’s no big deal.