Inherited Tenant Pre-Close Issues

[Chase Randolph]

Hello!

I am gearing up to close on a duplex at the end of February, and will be taking on inherited tenants in the second unit while I live in the first.

They have filled out and signed the estoppel agreement (still waiting on seller signature) and there are a few things that are throwing up red flags.  First, they said that their monthly rent is $950, but their last payment on 1/1 was only $800.  They also stated that they own the clothes washer and dryer in their unit, but the seller made clear that they are included in the sale of the home.

They also don't have a written lease, and all of the agreements that they have with the seller are verbal only.

Seeing that these tenants are more than likely going to cause headaches in the future, what is the best way to proceed?  I am thinking it would be fair to have them re-apply using my own policies/guidelines before signing a lease.  If they don't pass the application criteria could I then ask them to vacate?  Or should I not even bother with the application and just go straight to asking them to vacate?  

Any help is much appreciated! Losing some sleep over this one!

[Nathan Gesner]

You can start by speaking with the Seller to confirm the information. Someone may have forgotten who the machines belong to. Maybe the reduced rent was in exchange for some work the tenant did. Compare the estoppel to the lease.

Don't move forward with the purchase until all parties are agreed on the terms and the estoppel is signed. If the Seller and Tenant can't agree on ownership of the washer/dryer, you can ask the Seller to reduce the price. Or you can ask SEller to get rid of the tenant before you purchase. Get creative, find ways to mitigate your risk.