Tenants being difficult when viewing a potential property?

Question

So we are evaluating a property and our agent is attempting to set up a showing and the tenants won't respond to the sellers agent.  The rents there are very cheap now $325, should be around $550 in the current market.  Do you think that the tenants are sabotaging the sale for the seller?  If so is there a way to see the place by going around the tenant?

Jon Holdman · Answer

Short sales a such a pain.  Does the seller or their agent have an approval from the bank?  If not, I'd stick in a offer for what ever you think is the right price, earnest money to be provided only after bank approval and with a contingency to look inside, and then forget about this.  Keep looking and if this comes through a few months from now, go have a look.

No earnest money without bank approval unless you're OK with having that cash tied up for months.

Jon Holdman · Answer

If you like the deal, and have looked at the outside and peeked through the windows make an offer that has a contingency on looking at the inside.  Once you get inside, you can adjust your offer based on what you find.  Even if a big adjustment is needed it will be harder for them to let you go.  They probably don't know what's really in their, either, and it may change before the eviction is done.

Michael Rossi · Answer

The OWNER needs to give the tenant legal notice that he is showing the property. Then, he can just show it, whether the tenant likes it or not. Yes, the tenants are probably intentionally sabotaging the sale. They've got a sucker for a landlord now (who never raises the rent and doesn't know what he's doing). Why would they want to change that?

Mike

Michael Rossi · Answer

...on the other hand, a drug dealing, criminal scumbag tenant-from-hell occupying the property often gives you the leverage to buy at a GREAT PRICE.  There is no-one more desperate than a landlord that can't sleep or eat because they're being stressed out by such a tenant.

I'm not suggesting that will work in this case, since the owner is a bank.  However, it does work very well with individual owners.  I've bought a bunch of property like that and I actually enjoy kicking out the deadbeats!

Mike

Jon Holdman · Answer

If the agent has an approved price, then you might have something worth working.  If there's no approval it will take months to get an approval, and there's a good chance the approval will never happen.  Not impossible, and may be worth trying for an offer.  But low probability of success.  I had an earnest money check tied up for over a month on a deal like that, only to have the bank take it to auction.   Then, the seller who had just lost their house had to approve releasing my money.  That took several more weeks.

I'd agree with Sandra.  No closing to tenants out and you've verified they're out.  I had this happen on a house once, too.  Tenant supposed to be out, but nobody could actually say if they were.  So, drove from the title company to the property before signing anything.  Lo and behold, they're still there.  When I refused to sign, things moved a lot quicker.

Sandra Sunshine · Answer

Just a suggestion: Make sure the tenants are out prior to closing. Unless the eviction can be transferred. It does have to be done legally from one owner to another I believe.

I made the mistake of giving my tenant a chance after he had been difficult with showings, when I was looking at my place and I am dealing with the worst nightmare of my life.

Christopher Henning · Answer

Thanks,

Chris

Mark N.A · Answer

The lease should specifically address the issue of showing the property, usually with a certain time-frame notice or 'at all reasonable times', as mine states.

If these tenants are trying to sabotage the sale be prepared for more sabotage if you take over.

Christopher Henning · Answer

So I just heard back from my agent and the tenant is in fact sabotaging the sale.  He won't let anyone come in to see the property.  Apparently the owner is in the process of evicting him as well which could be a good reason why the tenant is acting that way.  $325/m is just way too good of a deal for those apartments.

Tenants being difficult when viewing a potential property?

Most Popular Reply