closing next week, tenants behind on rent

[Brian Zaug]

Hey Happy Holidays BP!  Looking to close on a small multi next week.  Anyway, I met the current property manager at the house the other day and he leaked some info regarding the tenant downstairs being behind on rent.  I don't know how much but if I were to go ahead and close this deal next week, that back rent would not be my problem would it?  I'm getting a sweet deal on the duplex so i'm willing to buy this house with the current tenants.  The current owner has their security deposits but he must pass those over to me at closing as per our contract.

Once I close on this next week, is there anyway for that previous owner to collect that back rent?   

Thanks in advance for your insight on this..

[Nathan Gesner]

Yes, the unpaid rent is the Seller's problem. However, the tenants would still be in the unit and that makes them your problem. They may shape up for a bit while they figure out who you are but they are likely to get right back in the red and it may come quicker than you think.

If they are not 100% by the time you close, I would collect their first month's rent (make sure it's good) and then serve them notice to vacate.

It's common for new Landlords to say, "I don't care if they're bad tenants because I'm getting such a good deal!" That's a cop-out, and you know it. A good deal can turn into a bad one if you allow bad tenants. Clean it up before your good deal turns into a nightmare.