Purchasing 4-Plex With Potentially Zero Current Lease Agreements

[Prag Patel]

I'm having issues deciphering what this means and hoping the BP community could help me with this, or whether I should just consult a lawyer.

Situation: Under contract to purchase a 4plex in Alabama. 2 units are currently vacant, and the other 2 are occupied. Upon contract agreement, I requested lease agreements, of which both expired summer of 2016 and the other expired this past summer. There are no clauses for month/month or any language stating the leases will automatically renew.

Question: Is this an issue? Am I putting myself in a position where I cannot evict or collect rent? 

Apologies if that has been covered in another thread (I did search but nothing exactly in this situation).

[Thomas S.]

When a term lease ends it automatically becomes M2M with monthly automatic renewal. The landlord and tenant do not have to do anything. The tenant and landlord may either give notice to end the tenancy as out lined by the state landlord tenant regulations. The language in the original term lease remains in effect going forward.

You are responsible for studying and knowing all your state landlord tenant regulations prior to taking ownership and beginning the operation of your business. Knowing the regulations that govern your business is mandatory if you wish to stay out of court.

You need to have esstopal letters signed by tenant and landlord prior to completing the purchase.