FIRST INVESTMENT PROPERTY/DUPLEX W/TENANT OCCUPIED

[Adam Rego]

Hello everyone I need your help please.

Ok so I'm going to try and explain my situation . I'm in the process of closing on my first duplex which I plan on house hacking. I found out there was a tenant in one unit so I said ok that's fine. I asked for a lease and was told I will get a lease at closing. So a couple weeks go by and I ask if I can get a lease since both parties agreed on a price and in the process of going through with all the paper work.

I then find out that the tenant isn't paying rent and there is no lease since the owner of the property died back in 2014. The decease owner's heir takes over the property and has let the tenant live on the property for free as long as the tenant agrees to take care of it. As a new investor I would like some advice on my rights as a new land lord. If the present tenant does not agreed with my new lease agreement can I call the sheriff on her to make her move out? Can someone help advice me in this situation? My closing date is November 4th, 2016.

[Jim Sakalis]

Adam,

Good question and can get a little sticky if not approached properly.  In most states that " So called" tenant would be considered a squatter and you would have to file an eviction on them just like any other non-paying tenant. 

Before closing, I would check with your state and county law on how that person would be treated.  The last thing you want to do is have a professional squatter in the home.

I won't tell you the nightmare I had in Atlanta GA back in the day.  The county was threatening to throw me in jail if I did not turn the utilities on for them.

Before it turns into a legal matter do your homework before proceeding.

Adam, here is another great option-Whoever is doing the closing you can instruct them to withhold $1000.00 of the sellers proceeds until the property is vacate.  You would have to draw up an amendment to your contract and get them to sign it, but the key to this trick is, wait until you get to the closing.  You have the amendment already drawn up for their signatures.

I would love to help anyway I can. We service all 50 states and always looking to partner some deals with and or offer education, tools, resources as well as networking.

Feel free to provide you contact information so we can talk further so that I can better serve you.

Successfully,

Jim Sakalis

Entrepreneur / Investor / Team Builder / Coach