How to deal with Tenant after foreclouse

[Kevin J.]

I am trying to bid on a foreclosure condo. It is tenant occupied unit. My intention is to acquire the property and renovate it somehow and sell it. 

To that end, I want to know what options that I may have to achieve this.  I understand, the foreclosure process will need to respect the existing lease. but, right after confirmation of sheriff sale, what is the process to ensure the current tenant start paying the rental to new owner.

Thanks,

Kevin

[Patricia Steiner]

State law generally dictates whether the current or new owner gives notice of the sale to the tenants.  I recommend sending the tenant a letter introducing yourself as the new owner and providing payment instructions with some type of verification process if they have concerns (title company can confirm sale) immediately after the sale.  Unless you're going to live in the property yourself, you'll have to honor the lease term. One alternative to that would be to offer "Cash for Keys" where you offer an incentive for the tenant to move out before the term ends.  Some give a cash incentive ($1000 to go now) and others have arranged/paid for a local moving company (like Two Men & A Truck/College Hunks Moving...) to cover that expense and even provided a rental agent to help them find a new home.   

Good luck with your bid...