How to handle current tenants not on a lease

[Kelly Conrad]

Hello!

If this property ends up working out, the owner currently has some relatives that are living in one of the units. They do not have a lease, and because of that, I'm not really sure how to handle them once we close on the property.

I'm assuming we screen them and then if everything is fine, ask them to sign our lease? If they don't meet our requirements, I'm guessing we'll give them 60 days to find a new place and then start screening new tenants ASAP to try and have someone lined up? 

Just a little odd since we're not picking up a current lease, and I wanted to confirm we treat them as an applicant. Also, if the property passes inspection and we move forward, can we screen them before we've closed to make sure they fit our standards, and then have them sign our lease the day we close?

As a note-we do know they make 3x the rent, and the place is well kept, so it is in our interest that we keep them so we can cash flow right away since our upper unit is currently vacant and we'll want to get that filled right away.

I look forward to your input!