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Updated about 7 years ago on . Most recent reply
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Buying a property with tenants on verbal lease
I currently have a Quadraplex under contract that has existing tenants in all four apartments. The neighborhood is somewhere between a C and a D so I am not confident I am acquiring the best tenants. The only landlord did collect security deposits but only has a verbal lease with these tenants. What I'm wondering is what would you have the tenants sign before buying the property? I found a good estoppel on biggerpockets but it doesn't list important things that would be found in a lease.
Also, right now one of the tenants is paying significantly below market rents but is taking care of the lawn care and snow removal. I would like to keep this agreement with him, but am curious if anyone has any input on this? Any information you can give me is appreciated, I am not closing for 3 weeks so I still have a little time to get these things taken care of.
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One other thing to keep in mind--if the tenant doing the snow removal doesn't do it, you, the owner, are still responsible for a "slip/fall".