Gracefully Removing an Inherited Tenant

[Michael Wallimann]

Hello BP clan! I am about to close on a fourplex next month. It is going to be an owner occupied property. This building has 3 tenants in place with the biggest unit (a 2BR/2BA) unoccupied at the moment due to a recent eviction. I am planning on moving into the smallest and least expensive unit which is occupied by a tenant who just moved in a few months ago. My agent is telling me that the owner says everybody is on a month to month lease but they still have not provided copies of the tenant's lease agreements. I'm pretty new to being a landlord and I'm wondering if any of you have some input on good approaches to this situation. I know that cash for keys could certainly be an option. Thoughts? Experiences? Advice?

[Andrew Angerer]

Just be as professional as possible,  know your local codes and laws about moving out a tenant. You do not need to give a specific reason for doing this, just let them know that at the end of x month that they will no longer be able to live there....

However, if this tenant has been; long term, hassle free, and prompt with their payments, maybe you need to reconsider moving them out as you may find the loss in this cash flow to put a hurt on your income.

I would say a good compromise would be to see if the tenants want to upgrade to the bigger unit, where you being the kind landlord offer a "reduced" price to them.

Ultimately it is your decision, but be sure that your decision is not based on emotions but rather simple dollars and sense. 

All the best,

Andrew Angerer