Fixed Life Lease Tenant Question

[Liz P.]

Hi all!

I recently inquired about a triplex in my area that has a pretty unique renting situation. Units 2 and 3 are rented out month to month with no formal lease in place. They have lived there 5 and 15 years and state they have "no intention" of moving anytime soon. Unit 1 is a fixed life lease.

I likely won't be pursuing this property, as I'm hoping to house hack my first multi-family, but because of how unique it is, I wanted to hear other's thoughts on it. Would you ever purchase a property where the renters have no formal lease or would securing a lease be part of your negotiations? Have you ever come across a fixed life lease and what are the pros/cons to it? Would you purchase a property with a tenant on a fixed life lease?