Tenants without a Lease?!?!

[Stephen Bruce]

Good morning! Here's the situation:

I'm under contract on a quadplex. Current owner/landlord is terrible at his job. He says he does not have a lease signed for 3 out of 4 units. It is "word of mouth." He claims they all pay accurately and on time. I am going to do extensive repairs to the complex meaning I will have to remove these tenants. 

Since there is no lease, does anyone foresee legal issues with removal? 

Do the tenants have any grounds to fight me on kicking them out? 

How do you recommend I go about this if you predict complications? 

Thanks in advance for your advice!

[Brandon Lawrence]

Quote from @Kevin Sobilo:

@Stephen Bruce, signed estoppel for each unit as part of due diligence under the sales contract.

You need to use these estoppel forms to verify all the details about the oral rental agreement with each tenant. The tenant needs to sign these so that you have certainty that the information you're being told is accurate.

If you don't, the tenant could pull out a written lease after you buy the property or claim the deposit money is more than you were told or that the tenant owns the appliances.

@Stephen Bruce In South Carolina, where month-to-month tenancies default to a 30-day notice period with no formal contract, it's especially important to exercise due diligence. I agree with Keven that obtaining signed estoppel forms from each tenant is essential. These forms provide a written confirmation of the terms of the oral rental agreement and help prevent misunderstandings or disputes down the line.

By having tenants sign estoppel forms, you can verify important details such as rental amounts, deposit amounts, and any additional agreements or responsibilities. Without these forms, there's a risk that tenants may produce conflicting documents or make claims that could complicate the transition of property ownership.

We are a property management company based in the Upstate of South Carolina. It continues to surprise me how many landlords approach us to manage their properties without having proper leases in place with their tenants during the transition.