How to handle inherited tenants after closing

[Ray Thorsen]

I have been fortunate that the rental buildings I have purchased so far have been either empty or had great long term tenants. I am now buying a duplex from Auction.com and am trying to get a hold of the current leases. I close May 19 so I have some time to get the info but I am not counting on getting it early. I do not know if they are m-m or on yearly leases. I have no history on the tenants either. So I am trying to prepare myself for all situations. I know if they are on a lease I need to honor it. But if they are m-m how do I handle the transition to get them on my lease or out the door. Assuming the rent is due the first I would have 10 days to have them fill out my application to see if they meet my requirements before I could give them a 30 notice to vacate or have them sign my lease. Assuming the worst I could offer cash for keys.

I am looking to BP'ers for any advise on how you would handle it and if it gets to cash for keys are you just happy if they leave or do you put any incentives in your offer for making sure it is empty and or cleaned. Thanks in advance your input.

[Roy N.]

Originally posted by @Huiping S.:

So the former landlord will not transfer the lease documents to the new owner?

The OP is purchasing the property at auction, so there is a possibility the former owner is not longer involved. Similar to when you purchase a property as an REO or at tax sale, the agent selling the property will have very little information on the business itself.

If the owner is still engaged - and the one selling the property - then it would be reasonable to expect them to provide copies of all leases and service contracts.