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Updated over 4 years ago on . Most recent reply
Eviction help while Under contract in Rahway?
Happy holidays NJ BP!
I've convinced my sister to start her investing future with a multifamily house hack. We're currently under contract, attorney review on a duplex but after visiting with the tenants we know that we don't want to inherit any of them!
Does anyone have any advice on how we can get the property completely vacant with current COVID restrictions? So far we're only aware of being able to vacate the single unit that my sister would live in.
Thanks much!
Most Popular Reply
@Frank A. - house hacks can be very lucrative especially with cheap owner occupant financing. You have several choices.
1) Ask the seller to provide the property fully vacant by closing, maybe in exchange for an increased purchase price or additional money deposit that seller can keep if you walk away (it costs them money to re rent or turn over the property if you walk).
2) Offer tenants cash for keys to be gone by closing via the seller.
3) Review the existing lease and tenant payment history, paystubs, etc. maybe tenant is worth keeping through end of their term and then you can non-renew or raise rent in accordance with local laws. Nothing prevents you from installing exterior cameras or other security to make sure tenant is obeying your lease. Ideally you get a new lease (your lease) signed by tenant before you take possession.
4) Drop this contract and try again on a vacant property or one rented to a inherited tenant you do like.
Read up on NJ rules on a tenants right to stay if they are your tenants and want to continue to rent and your ability to only raise rent like 10% max annually. Read up on Covid moratoriums and eviction issues (nothing worse than having a non paying tenant you can’t remove, especially if using free / included utilities you pay for and cannot turn off). There are many covid housing assistance programs if they’re in this position and have a Covid related job loss / hardship. Good luck!!!
It's very tough to evict during COVID. You can try having your attorney put into the contract that it must be delivered vacant. It's then the current landlord's job (the seller) to convince the tenants to move. If the tenants don't vacate by closing, then you don't have to close and get your deposit back. If the landlord won't agree, you can offer the tenant cash to vacate. I've had success with this in the past.
Also, is the tenant under a lease?
You won’t be able to evict them with the COVID-19 eviction moratorium in place. It will take an additional 60 days after the pandemic is declared over in NJ for evictions to restart. You will also have to honor any lease that is in place.
Your sister should have it had in the contract for the property to be delivered vacant if you wanted to select your own tenants.
Unfortunately, she’s SOL. New Jersey is a very tenant friendly state. In normal conditions, it could take 6 months to evict a tenant and you have to have cause.
@Frank A. - house hacks can be very lucrative especially with cheap owner occupant financing. You have several choices.
1) Ask the seller to provide the property fully vacant by closing, maybe in exchange for an increased purchase price or additional money deposit that seller can keep if you walk away (it costs them money to re rent or turn over the property if you walk).
2) Offer tenants cash for keys to be gone by closing via the seller.
3) Review the existing lease and tenant payment history, paystubs, etc. maybe tenant is worth keeping through end of their term and then you can non-renew or raise rent in accordance with local laws. Nothing prevents you from installing exterior cameras or other security to make sure tenant is obeying your lease. Ideally you get a new lease (your lease) signed by tenant before you take possession.
4) Drop this contract and try again on a vacant property or one rented to a inherited tenant you do like.
Read up on NJ rules on a tenants right to stay if they are your tenants and want to continue to rent and your ability to only raise rent like 10% max annually. Read up on Covid moratoriums and eviction issues (nothing worse than having a non paying tenant you can’t remove, especially if using free / included utilities you pay for and cannot turn off). There are many covid housing assistance programs if they’re in this position and have a Covid related job loss / hardship. Good luck!!!
@Frank A.
Hey Frank, cash for keys or asking for the property completely vacant is going to be the best best. I’m from Rahway and I know a local attorney. I can give you his information even though he’ll probably say the same thing most people are saying.
There's a border line horder tenant that has a lease till June. Thanks for the advice everyone! Keep it coming haha!
If nothing else, what is to prevent your sister from occupying the unit of the tenant you dislike the most? I believe she has to occupy that unit a minimum of 6 months under the law, but I would definitely check that.