Tenants with no lease???

[Eddie Werner]

Hello fellow BPers,

I am looking at a triplex and duplex in the Pittsburgh area. During my due diligence of property evaluation I ask for copies of current leases and to my surprise (maybe not so much a surprise anymore) the owners of these properties did not maintain the leases so the tenants are month to month with NO signed lease. Just wanted to know if this makes these properties risky or if I could protect myself by making a statement in my offer that the tenant must sign a lease upon closing (or the owner must present an up to date lease). Any issues or recommendations here?