Renter with no lease

[Kyle Kufeldt]

I'm looking at buying a condo that currently has tenants who are friends of the seller. The tenants don't have any formal lease and are basically month to month. The condo is extremely clean and well kept almost like the tenants were specifically brought in almost like a staging.

The owner says they might be interested in staying on after I purchase the property but there is zero chance I would keep them in the condo without a new lease. What else do I need to consider? Is there anything I can do in the offer to protect myself? The worst situation would be if these tenants didn't pay or sign a new lease.

Any advice is very much appreciated.

--Kyle

[Ed O.]

Be sure you get credit for the security deposit at/before you close.

You're right on the lease. If having them in the house is important to you, you'll have to have a formal, written agreement and full application (for collection/screening, in case they default, etc.) before/at close. It would be wise to screen and be confident in their ability and desire to pay rent to you. Who knows, they could be a bunch of lazy mooches.

You'll also need to document the condition of the home, I believe at/before close as well.

Good luck.