Closing soon but messy existing owner wants to rent for 4 wks

[Julianne Croegaert]

Need help w a good compromise. The situation is that we’re closing on a property in a week (should have been tomorrow but owner asked for extension) and have been asked if we would like to do a rent back to the existing owner for 4 weeks. Apparently she had a car accident and is having trouble getting packed and out. Problem is we did a walk through and the garage is full of garbage. We also don’t know her, no credit check, background check, etc. is there an ethical way to handle this? We were really want to rent it before school started knowing this is the best time of year. TIA!

[Mitch Messer]

Hi @Julianne Croegaert! Yes, this can be done both smoothly and cleanly:

1. Have the seller sign a simple short-term lease at closing that terminates on the date they agree to move out. Make certain the lease provides for a sizable and dramatic increase in rent if the tenant holds over (i.e., stays past the end of the lease).
2.  Also at closing, have the escrow agent deduct a sizable chunk of seller proceeds (at least a month of fair-market rent, possibly two) as security deposit for the lease. Get an escrow check made out to you (or your leasing entity) as landlord.
3. Have a one-page Termination of Lease agreement ready for the seller to sign on the date they move out. Review this document with the seller at closing to avoid future misunderstandings. The document should specifically state the deliverables (keys, garage door openers, access keys, etc.) that the seller will need to bring and the final condition of the property (e.g., "broom clean") in order for them to receive their full security deposit.

For the record, this is what the Big Dogs like OpenDoor do when a seller needs a week or two to move post-closing.