Buying a property with existing tenants

[Brooke Juedes]

Hi All, 

I am closing on our deal this December 30th, for a 4-plex. It is currently fully rented, which is great!

HOWEVER, as it sits, the landlord currently pays all utilities, (which will be changed immediately into the tenants names) and rent is low. I plan on meeting with each unit and having them sign a new lease, (they should be on  month to month currently), with a raised rent and acknowledgement that utilities is now on them. 

I see this as being an issue for some, because who REALLY wants to pay heat in WI if it was being provided!?! But neither do I! I'm just thankful the building was already set up with 5 meters, one being the common area. 

In addition to the two relatively HUGE changes, one of my units is a hoarding family with eight cats. (2 Bdrm/1 Bath) A quick walk through, determined the bathroom needs to be fully gutted and started fresh. There were many boastful comments about not paying utilities, and everything was included.

So assuming they do not agree to our lease/rental agreement......  is there anything to protect ourselves in the event they retaliate and do not pay rent and/or the heating bill? (Utilities go on our tax rolls if not paid by the tenants.) 

We have had an eviction proceeding in the past, and the judge left that family in the unit for a few extra months, because it was cold. I feel like these specific people are going to truly take me through a course of fighting me to get out. 

The offer did NOT state any contingencies on eviction. So I've looked at many discussions about the tenants having 30 days to find a new residence BUT what if they refuse to leave? What are our rights? Should i contact a lawyer and have them send a letter? I am used to working with difficult people but with this situation I am trying to time it out appropriately to avoid multiple vacancies at once! 

Thoughts!

Thank you in Advance, 

Brooke :)

[Todd Plambeck]

First, what do the existing leases say as far as notice?  WI says you can terminate a month to month with 28 days notice but if they have a lease that has gone to month to month whatever is in the lease will take precedence.  Second, you are obligated to provide utilities to the tenants until they sign a new lease since they are paid by the landlord now.  Good luck getting any of them to go for that, would you?  I would suggest waiting until spring and then hit them with the new lease.  Otherwise you are going to end up paying utilities on four vacant units until the thaw.