Closing with a tenant - westchester NY

[Erica Howard]

Hi everyone. I’ve been working on my first deal. A two family house-hack since October 2019. One unit is empty and is the one I want to rent out (bigger and more rent). The second unit has a section 8 tenant in the house.

The contract states that the seller must deliver the house vacant. The tenant was given a vacate notice and an eviction notice. The court date was scheduled for March 17, just two-three days after the eviction moratorium was announced for the state of NY.

At this rate, I can’t count on the tenant being evicted or leaving before November, December 2020.

So I am considering closing on the house with her in it and living in the first unit and fixing it up in the meantime.

My general questions are does anyone know in the state of NY if:

1. the state continues to pay the landlord rent (for section 8) even if an eviction process has started?

2. Aside from lost rent, how much are typical eviction costs from an attorney/legal fee/ paperwork perspective?

3. Finally, if an eviction started with the seller, at closing is it transferable to me? Or will I need to start a new eviction process?

Thank you! Really appreciate any insight!

[Calvin Thomas]

Originally posted by @Erica Howard:

Hi everyone. I’ve been working on my first deal. A two family house-hack since October 2019. One unit is empty and is the one I want to rent out (bigger and more rent). The second unit has a section 8 tenant in the house.

The contract states that the seller must deliver the house vacant. The tenant was given a vacate notice and an eviction notice. The court date was scheduled for March 17, just two-three days after the eviction moratorium was announced for the state of NY.

At this rate, I can’t count on the tenant being evicted or leaving before November, December 2020.

So I am considering closing on the house with her in it and living in the first unit and fixing it up in the meantime.

My general questions are does anyone know in the state of NY if:

1. the state continues to pay the landlord rent (for section 8) even if an eviction process has started?

2. Aside from lost rent, how much are typical eviction costs from an attorney/legal fee/ paperwork perspective?

3. Finally, if an eviction started with the seller, at closing is it transferable to me? Or will I need to start a new eviction process?

Thank you! Really appreciate any insight!

Evictions in NY, let alone NYC are nightmares. The courts are going to be backup for so long you may not get heard until 2021. If the tenant already stopped paying rent, you should pull out of the deal. This will only hurt more and more as the tenant doesn't pay their share for the next year. Unless you do not need her rent to help pay for the place.  NYC evictions, on average, can be a few grand.  This doesn't include the lost rent or turn-over costs. It's very expensive.