Closing with a tenant - westchester NY

Multi-Family and Apartment Investing
6yFollow

Closing with a tenant - westchester NY

Erica Howard
Brooklyn, NY · Member since 2017 · 5 posts · 0 votes

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!

0Reply
14 views

Most Popular Reply

Calvin Thomas
Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
6y
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.

1Reply
See this reply in the discussion

7 Replies

Jump to latestLatest
  • Joe Jor
    Westchester, NY · Member since 2018 · 115 posts · 52 votes
    6y

    @Erica Howard, congrats on your first deal!  Regrettable, I don't have the answers to the specific questions you asked. 

    With that said, you could ask the seller to put $XX.XX in an escrow account to cover 75% of the eviction, or whatever percent you both agree to.  These are costs that the seller already planned on spending to finalize the sale.  I will concede that the seller likely already spent some money to get the eviction to its current state.

    Joe

    0Reply
  • Scott WolfPro Member
    Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 957 votes
    6y

    @Erica Howard why did you want the house delivered vacant? A section 8 tenant is a great tenant has the monthly rent mostly guaranteed by the government.  Evictions are extremely costly and time consuming in NYC.  I have a LL/Tenant attorney I can refer if you need advice.

    0Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    6y
    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.

    1Reply
  • Peter Nikic
    Investor · New York & TN · Member since 2019 · 325 posts · 219 votes
    6y
    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!

    luckily westchester is a little easier than NYC, I'm sending you an attornys number whom I've used in westchester, he is out of Yonkers. 

    Unfortunately this eviction freeze is causing additional and new problems which will make matters worse. Once courts open up, there will most likely be a very large backlog both from past cases and the addition of (expected) new cases. This will elongate the eviction for sure. 

    1Reply
  • Erica Howard
    OP
    Brooklyn, NY · Member since 2017 · 5 posts · 0 votes
    6y

    @Scott Wolf

    Thanks! My plan was to live in the smaller apartment in the house (which is where the tenant currently is) so that I could get more rent from the bigger unit. Section 8 wouldn’t allow her to take the bottom unit because she only qualifies for a 1-bed or studio.

    0Reply
  • Erica Howard
    OP
    Brooklyn, NY · Member since 2017 · 5 posts · 0 votes
    6y

    @Calvin T.thank you! I’ve heard the same about court backlog. I’m asking the seller to provide a credit for the missed rent for 7-months as that’s how long i am estimating the process to take.

    0Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    6y
    Originally posted by @Erica Howard:

    @Calvin T.thank you! I’ve heard the same about court backlog. I’m asking the seller to provide a credit for the missed rent for 7-months as that’s how long i am estimating the process to take.

     The courts are so backed up right now, it can take you almost a year to get the tenant out.  You should request a year's rent in credits or escrow which will be released to you every month until the tenant is out.  Open ended would be better, since who knows how long the NYC courts will be.  Pre-COVID-19, it took between 4 - 6 months to evict.  Now, who even knows.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free