My offer was accepted on what would be my first rental property (SFH in Duluth). The plan was to remodel and split into a duplex to rent one unit and keep the other as a weekend spot for myself. Current tenants were given proper legal notice and would be out by 10/5, so the house would be ready to close on 10/8. The tenants showed up at the end of the inspection and expressed interest in signing a lease with me. I didn't need to start the renovation immediately, and since it was a family with a kid, I went with it. The information provided to me stated they were paying $1200 + all utilities. My monthly payment being $710, I said I would draft a 6-month lease with the same terms +last/deposit.
That's when everything started to unravel.
When I sent them the terms, they replied, stating the $1200 included everything. That didn't work for me, and I reiterated 1st/last/deposit, no response. A week later, they say they couldn't find anything else and want to sign. I sent over a lease draft for them to review, no response. Another week went by without a reply, so I had my agent notify the seller's agent that the tenants were non-responsive and needed to be out before we closed.
A week passes, I got the clear to close, and then I received a slew of text messages and missed calls from the tenants. They said they were planning on signing my lease after all but were waiting for me to send a final copy. I told them I was sorry, but since they hadn't responded to me, I made other plans for renovations. They laid on the guilt trip of having kids and nowhere to go, and against my better judgment, I caved and gave them a day to return the signed lease, send me first and deposit ($2200), and get an application in with the utility companies. They then asked me to sign the lease first and put a check in the mail--yeah, right. The deadline I provided was yesterday evening and again, no reply.
I let my agent know that I don't want to lose the house equally as much as I don't want to keep the current tenants, but if it comes down to closing with tenants or walking, I'm going to walk. We haven't heard anything back from the sellers on where things stand, and I doubt closing on 10/8 can happen. During the 2 weeks of radio silence, I've since learned that they had told the current owners that they had a lease with me and would be staying. Yikes.
Am I better off letting this one go and looking for a different property?
