House under contract with renter but only verbal lease in place.

[Bret M Rankin]

Hi all,

I would appreciate some advice. Recently got a home under contract with the plan to BRRRR, home has a renter but only a verbal agreement with the current owner. I was wondering how you seasoned investors would handle this situation. My intention was to allow the current renter to stay in place for 3 months, end the lease at which point i would do the rehab. Now I'm wondering if I should keep him month to month and end the "lease" after the first 30 days. Any suggestions would be appreciated.

Bret

[David Gonzalez]

If you are still in escrow get the tenants to sign a tenant estoppel stating the terms of the lease. Also check with your state law. In California only month to month leases can be verbal. Either way treat them nicely and budget money for an eviction.