Purchasing a Property with an Eviction in Process

[Philip Mullinax]

Hey guys, I'm in the process of purchasing a quadraplex.  I was informed that one of the tenants didn't pay their rent for November.  The current owner has started the eviction process, but it will not be completed before I close.  Has anyone had any experience with taking over an eviction from a previous owner.  I have put in an email to my realestate attorney, but wanted to see if anyone had any exprienece dealing with this.

[Marcia Maynard]

I wouldn't delay the closing because of this. But I would prepare to act swiftly once I became the new owner to address matters with this tenant head on. The unpaid November rent will be the previous owner's loss, and won't involve you. Be sure to get the security deposits for all four tenants at closing. Also, obtain copies of the current lease agreements, as you will need to honor them until they expire, unless you are able to negotiate a mutual agreement with the tenants to transition over to your rental agreement sooner. You need to establish a relationship with all four tenants and introduce them to your management style and expectations.

In any case, keep an eye of the rogue tenant. Tenants who are rule breakers are trouble. He's shown his colors, so anticipate he will not honor other terms of the rental agreement too. I would sit down with him and review all the terms of the rental agreement, including how to pay rent when it is due and to whom. Also, do a maintenance inspection soon so you can get a new baseline on the condition of the unit. Compare this with the move-in checklist. Invoice for damages as you discover them.