Inherited tenants, no lease

[Pearce G.]

I'm preparing an offer.  Long-time tenants are paying 750/mo to seller.  Market is >1000/mo.  I'm willing to give them some time to find another place or pay the higher rent if they can, but I have to raise it soon to cash flow.  Seller's agent says tenant is month to month...willing to leave, but may need some time...but there's no lease and no property manager.  May not be any security deposit either.

What's my risk here?  If they have been living there a long time without a lease, does that make it harder to evict?  Should I require a lease (even if its m2m) as a condition of closing?  Or just require it to be empty at closing, so it's not my problem?

[Account Closed]

You need to read the law.  If you haven't checked out landlordology yet, you are not prepared.  Section B covers your issue.  You must give 30 days notice and I would hand deliver while video recording.

SECTION 27-40-770. Periodic tenancy; holdover remedies.

(a) The landlord or the tenant may terminate a week-to-week tenancy by a written notice given to the other at least seven days before the termination date specified in the notice.

(b) The landlord or the tenant may terminate a month-to-month tenancy by a written notice given to the other at least thirty days before the termination date specified in the notice.

(c) If the tenant remains in possession without the landlord's consent after expiration of the term of the rental agreement or its termination, the landlord may bring an action for possession. If the holdover is not in good faith, the landlord may recover reasonable attorney's fees. If the tenant's holdover is a wilful violation of the provisions of this chapter or the rental agreement, the landlord may also recover an amount not more than three months periodic rent or twice the actual damages sustained by him, whichever is greater and reasonable attorney's fees. If the landlord consents to the tenant's continued occupancy, Section 27-40-310(d) applies.