inheriting a tenant with no written agreement - options?

[Account Closed]

Hi friends,

I'm closing on a property soon where I'm inheriting a tenant who's been living there for over a year.  There's no written agreement or lease; the tenant is paying about half of market rent currently (I think--I don't even know the exact amount he's paying because there's no agreement).

Laws here require giving tenants 90 days for a no-cause eviction or to raise rents more than 5%.  Do I just have to wait the 90 days, or is there any way to shorten that time period, especially since there's no agreement? I could move into the house myself if needed.  (Law says the seller can give just 30 days notice if the buyer is moving into the property herself, but that notice must be given within 120 days of contract signing, and it's been longer than that.)

The plan is to have him sign an agreement on day 1, so it's not a question of whether to have an agreement or not.  It's more about what I can legally do--if anything, aside from cash for keys--to bring the rent closer to market faster, given that there's no written agreement currently, and the verbal agreement is with the seller, not with me.  

[Mike Nuss]

Hi @Account Closed forgive me if I'm off base here, but I would be much more concerned about inheriting a tenant with no written agreement. Raising rent and all that is fine and dandy, but having no written agreement at closing is a bigger issue. The plan is to sign an agreement day 1, but who can  guarantee he will sign a new agreement? I personally would not be closing until something is signed by the tenant. The tenant may be honoring a verbal agreement with the seller, but who's to say he won't try and take advantage of you after you own the property. At the very least I would want an estoppel letter stating some frames and terms around his current verbal agreement. That way you have some sort of documentation to take to court if necessary. CYA mode with tenants you don't know is imperative. 

As per raising the rent. I would also walk cautiously here. Not having to deal with courts, has very real intangible value. Treat his current verbal agreement, as a month to month agreement and then offer them cash for keys if you want them gone sooner. Better to cross your "T's" and dot your "i's" than to get a thousand dollars ahead in a short window of time.