Exiting tenant is not paying rent

[Account Closed]

The seller just provided us the financials and rent rolls for the current tenant. She has not been paying for the past 7 months. Per my agent, the seller said that the tenant stop paying because she informed her that she was selling the property. What should I do now? The tenant lease ends March 2020. Should I still go head with the deal? I need your help.

[Jonathan Taylor Smith]

@Account Closed - If the deal makes sense and is cash-flow positive if the tenant were paying, then I would proceed. I may attempt to renegotiate with the seller for the amount of rent you may not be able to collect based upon how long it takes to evict a tenant in your state, plus the cost of an eviction. I would also tour the property and inspect that unit closely to see if there is any tenant caused damage present that needs to be a part of that renegotiation.

But most of all, MAKE SURE that ALL of your communication with this tenant from day one is professional and positions you as an experienced landlord who is totally knowledgeable of procedures and laws. In so doing, you may find that they start paying upon being made aware that you are the new owner. And if not, proceed with all required notices and evict as soon as you are able to do so.

Alternatively, you could require the seller to provide possession of the property in a vacant state, as they may be in a position to evict in a shorter period of time than you, since the tenant is apparently 7 months past due, which may no longer be considered the case once you become owner.