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Updated over 3 years ago,

User Stats

35
Posts
34
Votes
Sarah Davis
34
Votes |
35
Posts

Inheriting a Non-Paying Tenant

Sarah Davis
Posted

Howdy all, 

I am currently under contract for a duplex to house hack, set to close May 28, 2021. One side is vacant and one side has a lease until Dec 2021. 

After accepting my contract, the listing agent (he says owner didn't tell him until after the offer) disclosed that the current tenants have not paid rent ($1295) beginning in March 2021. The tenants lost their jobs due to non-COVID related reasons (not exactly sure, but they both worked for the same company and I believe they were fired). 

Two days after accepting my offer, the tenants signed an additional agreement with the current owner that they would begin paying rent again June 1, which is to include $432 per month to make up for the back rent. This agreement states "If rent is unable to be repaid per this schedule, beginning 01JUN2021, we tenants do agree to accept termination of the lease agreement and assume responsibility for any outstanding rent and associated penalties." Not that that means anything. 

Travis County (Austin, Texas) issued an order today (County Judge Order No. 2021-04) that eviction proceedings can June 1 if the tenant has not paid rent for 5 months and the landlord has exhausted all rental assistance remedies. This would allow this current tenant to be evicted beginning July, assuming the county order stays the same. In addition, if they try to stay beyond their lease in January, I will be able to evict them due to claiming a homestead exemption. 

The listing agent claims that the seller is not trying to offload the tenants and that he's using the funds to rebuild another property after an intense snow storm we had in February. 

I've come to the conclusion that I am willing to go forward with the contract with the following provisions:

  • The seller will pay the equivalent rent for two months (June/July) if the tenant does not pay according to the additional signed agreement.
  • If the tenants do pay,  then I will provide the back rent to the seller. 

Thoughts? 

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