NJ Tenant Removal: Adding Clauses to Contract/Post-Close Options

[John O'Brien]

Hi Everyone,

I’ve recently had an offer accepted on a two-family property in New Jersey with tenants on each floor. The house is much older and in need of some serious repairs. In fact, I’m expecting it to be a full gut and renovation to get the units up to where I want them to be in order to generate the rents I’ve seen on comparable properties in the area. While I’m not concerned about the upstairs tenants, I am concerned about the downstairs tenants. By sight and smell, it is an obvious hoarder situation. The tenant has been there for a while and does not look to be in great health. While there aren’t piles of stuff stacked completely to the ceiling, there is garbage and clutter everywhere. I knew this was a huge risk when getting into the deal and priced my offer accordingly thinking it could be a very long time before I’m able to turn the place over. Still, I have not been through the process of acquiring a property with tenants that you don’t want already in place. What suggestions do you have for proceeding? During attorney review, we've discussed the current owners sending the customary 60-day notice to the tenants and it seems as though this will happen. What other options do we have for clauses in the contract that won't cause the seller to back out (property had lots of interest)? What other options are there if the 60 day notice doesn’t produce an exit? It has been suggested that we could contact the board of health to try and have the place condemned. Again, I’m planning to do everything that the BOH would probably mandate anyway, so I’m not so much concerned about that piece as I am about opening up a new can of worms by getting a government agency involved (and in a tenant friendly state). I am also concerned about the tenant being able to use that against me before I can use it to get them out. Any insights/experiences/suggestions would be greatly appreciated! Thanks. 

[Mark F.]

Hi John,

Theres a lot to unpack here. First where in NJ is this located? What 60 day notice are you referring to? For them to vacate within 60 days? Are you planning on occupying the property?

I'm attaching a link to NJ tenant landlord laws. Go to page 70. There are a certain amount and specific reasons you can evict people. Two of them may apply here. One is you intend to occupy the property. Second is a housing or health code violation. Read up on it as I didnt. Personally who cares of housing or health is getting involved as you're doing a full gut reno anyway? Good luck!

https://www.google.com/url?sa=...