Questions about investing in an occupied multifamily
Hi All!
Looking at a two-family with tenants in place paying below market rents in MA. My plan is to owner occupy one of the units. As the potential new owner, how do you deal with removing the existing tenant? Do you propose the new rent increase and if they don’t agree can you ask them to leave? I know it depends on whether or not they are TAW or lease but just curious to understand how others with more experience go about purchasing a multi with existing tenants.
What are some strategies to incentivize a tenant to leave peacefully?
Thank you.
Most Popular Reply
All offered above - and this one: make the offer contingent upon "vacant possession" at closing. That puts the burden of negotiating early termination of the leases on the seller as well as the seller ensuring the property is empty of all contents and trash by the time of closing. Let's face it - the seller selected the tenants and if you buy the property with the existing tenants, you're stuck on doing anything until lease end as the tenants have an enforceable lease. If there are short-term leases and/or none, let the seller provide the 30-day notice and deal with security deposit issues and more.
Hope this helps...