What To Do About Existing Tenants When Buying

[Jim Stanton]

Good Evening To All,

My Fiancee and I are in the process of buying a two family as owner occupied. We have to decide what to do about the current, long term, existing tenant. We sign the P&S Monday provided tomorrows inspection goes as we expect and we have a closing date of on or before June 21. I'm hoping to get some good advice here on BP

The property is a two family with three levels.  First floor is a 3 bedroom, currently unoccupied.  It needs paint, floors refinished and a little updating but nothing major.  Second floor is also 3 bedroom, needing about the same as first floor in regards to work.  This unit is occupied by long term TAW tenant who is paying $650 per month.  According to the listing agent she claims to be willing and able to go up to $1000 per month to stay.  That sounds good except current rents are more in the $1400 a month range.  More importantly we want the second floor tenant out so we can move into the second floor and combine it with the third floor level which is currently a walk up attic.  This third floor cannot be legally turned into a third unit per the city but it will give us two floors for our unit and the room to add a second bathroom as well as expand other rooms.  

I'd REALLY like to have her out by the end of June so we could move into the second floor directly from our current residence but that is short notice.  We believe Massachusetts only requires a 30 notice for TAW but we're not sure.  We've also thought about offering her say $2000 to help assist her move provided she's out by the end of June.  If she's out and we can move directly to the second floor the plan is to quickly update and rent ready the first floor and have a new tenant in by August 1st then we can focus on our unit.

Any constructive advice is greatly appreciated!

Thanks!