Purchasing duplex with 2 tenants / Want to get them out asap

[Mark Benevento]

Hey BP,

I am purchasing a duplex with closing in 3 weeks and I plan on doing a full rehab but need the tenants out asap. I obviously can not evict them during this time but would be more than willing to pay 1 months rent somewhere else for each of them. Does this sound like the best option during this time? Thank you!

[Daniel A.]

Hello Mark,

There are a few options in dealing with tenants that you want gone. Paying their rent elsewhere is one option, but maybe there is a better option, one that is slightly cheaper.

It is likely that the current tenants have given the previous landlord a security deposit. Since you plan on rehabbing everything, there really is no need for you to keep any of that. Offer to return their security deposit in full and provide them $200, $300 bucks for moving expenses. It's the "cash for keys" method in its most basic form. But read all the way through this before you approach your tenant with your offer.

If they don't want to move on that basis, you can explain to them that when their lease does expire, you will not be extending it. So they will have to move at some point regardless. You can also remind them that electing to wait until their lease is over places no guarantee on them receiving a full refund of their security deposit. And they will not get $300 to help with moving expenses. With the option you are providing them now, they are guaranteed to get their entire security deposit back and they get cash.

You could even go a step farther by going through the application they provided to the previous landlord and see what you can do about finding them accommodations and even setting up an appointment with them to view that apartment. If you go through their application, you can see if they meet other apartments' qualifying criteria. Contact other property managers and tell them your situation: you just bought the property, you want to rehab it, and you are looking for other accommodations for the current tenants. You don't want other property managers thinking you're trying to rid yourself of problem tenants.

If you do chose that route, make sure you don't give the prospective apartment management any of the tenant's personal information. At this point you just want to see if they have any accommodations. If they are amenable, then print off the necessary information and present it to your current tenants. You want to approach the tenants you want to kick out as a professional who has their best interests at heart.

Let your tenants know that you are the new owner, or even that you work for some investors (make someone else the "bad guy"), and that a good deal of renovations need to be completed. You can tell them that there are two options: option one, "I have found another apartment nearby that has a vacancy. I'll be happy to schedule a meeting with them on your behalf. To make the move easier for you, I am willing to refund your security deposit in its entirety and pay you another $300 to help with moving expenses." Or option two, "You stay here until your lease expires. If you choose that option, I can't guarantee that your security deposit will be refunded in its entirety as a lot of work goes into making a unit ready for rental - even if we plan on renovating it. If you move out now, we're willing to bite those costs as a part of doing business. If you stay, you also won't get any money to help toward moving." If one tenant stays and the other leaves, you can also toss out a tidbit about how they're going to have to deal with construction noises for the next month or so.

I am sure there are other options, but there is one for you to think over.