About to buy a house and tenants have not paid rent to old owners

[Josh Fralish]

I'm closing on a house in a couple weeks and it is currently occupied with renters who have not paid for months. The current owner will not evict them. After I sign on the house what can I do? Do I have to give them time to see if they will start paying me? Can I evict immediately? Not sure what to do, I'm new to this with my first house closed on this May.

[Nicole A.]

If the numbers truly work, then handle evicting them upon closing. Be sure the numbers truly work. Are you remembering every single expense for the property? Are you remembering to include putting aside savings each month from the rental income? True cash flow is what is left after all expenses *and* savings (at least 5% *each* the monthly rent for repairs, vacancies, and capex).

Still good? Great! Close on the property, and that same day file for eviction. Either hire someone or handle it yourself. I'm guessing evictions in Georgia aren't too difficult. Before closing, research how to properly file for it and all the details involved. Do not file until you officially have closed on the property. Do not try to "get ahead" by starting this before closing. You'd be surprised how many people like to treat a property as if it's theirs before they go to closing. Don't do it. Too risky!

After you file for eviction, go introduce yourself professionally to the tenants. Inform them nicely of who you are and that you've had to file for eviction and that it's nothing personal. Let them know that if they move out by a specific date and return the keys to you, you will drop the eviction proceedings. If you really want, even offer them a bit of cash (whatever you see fit) to move out by a specific date. But if they don't move out by giving you the keys and signing a short letter you write up saying they sign that paper acknowledging they moved out and any left items are considered trash, then they don't get the cash! 

Now, if they don't move out, they don't get the cash *and* you already started the eviction and didn't waste time just hoping they move out.

If there was security deposit given to the landlord/owner, make sure that is given (or credited to you on the HUD paperwork) to you at closing. Also make sure the owner provides any other possible paperwork such as rental licences (if required in that area) and lead certificates (if property was built before 1978 and required in that area).