Inherited Tenant - Rent above Market - Questionable Siutation

[Lois Ginter]

I am purchasing a property with two out buildings.  There is personal property in these buildings that may, or may not, belong to an inherited tenant.  If the tenant does own this personal property, it indicates that he is doing work on-site with dangerous machinery. These tenants are paying at least $100 per month above market.

The existing month to month lease agreement has no mention of the use of these buildings.  My lease agreement has a clause that personal property may not be stored outside of the apartment or designated storage areas, and that anything other than a personal vehicle is not allowed to be kept on the outside on the property.  I am asking that they sign a new month to month lease, for the same rent, within seven days of me taking possession. 

The seller inherited the property, so he has no idea what personal property belonged to the original owner. My purchase agreement includes all materials and equipment on-site related to the maintenance of the property.  

My gut is telling me to give these tenants 30 day notice, rather than offering a new lease. It makes no sense that they would pay above market for this apartment, when there are plenty of SFH in the area for for the same amount of money, or less. It makes me wonder how they were screened, and if the reason they aren't renting someplace else is that there is an issue that would prevent them from doing so. I'm willing to talk to the tenants about removing the items from the buildings, and give them the benefit of the doubt. But still, I don't want to get into any drama about what they were promised by the seller. I also don't want the possibility to remove these items dragged out over months.

[Mindy Jensen]

"Going with your gut" gets a bad rap in real estate when you're using your gut as the only method of screening. I say go with your gut on this one, and give them notice. Make sure you follow your state laws in regards to property notice. Some states are 30 days, some are 60. Regardless of when you give the notice, they have until the end of the month to move out, meaning if you give notice on February 15, you can't expect them to be out before the end of March. Your 30 day notice turns into a 45 day notice.

Regarding the dangerous equipment, as long as you aren't providing the actual equipment, I can't see your liability. (I'm not a lawyer, either.) Talk to your insurance agent, and see how you can best protect yourself.