How do you handle inherited bad leases?

[Niels Bjørn Toppenberg]

I am looking to buy a 5plex from an old couple. All units are occupied but upon receiving all the leases I discovered that none of them are signed by the current landlord! Also the law states that the property must be inspected by both parties when tenants move in and a report stating the condition of the apartment must be made which is not done either leaving me with a potential problem when the tenants move out.

My question is: How much would you charge the seller for the extra risk occurred by this mess?

Total lease amount for 1 year is currently 34,247 USD and the building is on the market for 307,692 USD.

Please note that none of the leases have an end date and that this is customary in my country.

I would really appreciate any thoughts or advice other than to see a lawyer which is already setup ;)

[Oleg Shalumov]

@Niels Bjørn Toppenberg I would simply ask the tenants to sign a new lease with you and add needed requirements of the new landlord (you in this case). Just make sure the property currently in normal condition and the lease have the clause you need about the condition when they move out. You may also add any other requirement that you need as long as they are accepted by the current tenants.