What should I do with this tenant?

[Sam Schildkraut]

Hi BP,

Long post here, sorry. Looking for some thoughts on this situation. I’m under contract on a multi family. One unit is vacant the other is occupied. The current tenant has been there for four years, and after speaking to him wants to move and doesn’t want to stay there permanently. He has been doing work for the seller as a handyman in lieu of rent (not quite sure how long or the quality of his work). In fact he was actively working on the bathroom pipes when I was there.

he’s willing to sign an estoppel at a little below market rent, but is TAW with no paperwork or sec deposit. My concern would be if he is accustomed to not paying rent, assuming that tenant and having a hard time getting him out (even if you move toward eviction no evictions are happening now with covid).

My options as I see them:

- let him sign the estoppel and agree with the seller during P&S to come up with 1 mo sec deposit before closing and hope for the best

- try to have him and the current owner sign a new TAW agreement with my terms and I would take it over upon close (including 1 mo sec deposit)

- offer some cash and help him try to find a place and move before closing

- ???

Closing is set for mid May but will likely be pushed due to covid.

Any thoughts on strategy based on experience here?

Please no “omg you should back out now the world is collapsing” covid doomsayers

Thanks!