Contractor did not properly screen the tenants.After two months of the moving in, he gets a phone call from their previous landlord, who apparently proactively tracked down his contact information down to inform him that the four guys were bad news.

As the other posters say, this is usually done only with clients I have extreme experience and confidence in and also who have funds to put in.As a lender or JV partner, we can't properly vet an auction property before you buy so the risk skyrockets for us.

It's technically not a proper settlement as to consideration made to link the chain.

@Matt C.You might pair the lease with a lease bonus they select from things that improve the unit, a ceiling fan, paint a room new faucets or shower heads.Paul

If not, just make sure you follow the terms of the lease as far as giving her proper notice to leave.

I really just want to have this right before I sign or agree to do anything and want to know the proper contract to use for this process.Thanks in advance. :-0)

IF it doesn't have their name highlighted in a blue background (like yours is above) it didn't work properly and you should try again.

Disposal of fluids can be done properly, it's when they aren't you can have an issue.Noise is another issue to be covered generally, so revving up an engine constantly (as if they think they know what they are doing as old hot roders did) can be a noise issue.My lease prevented the tenant from keeping any inoperable machinery on premises or parts thereof, which meant all vehicles, lawn mowers or any gadget had to be operable, vehicles had to be titled, licensed and insured.The outside had to be free of clutter, trash, salvage or personal property not designed specifically as lawn furniture or for outdoor cooking and such was to be stored from view from the street when not in use.Those types of covenants will take care of a vehicle on blocks or an engine sitting in the yard.I wouldn't say anything about some minor repair being made to a vehicle, where do you draw the line, changing a windshield wiper or adding fluids or pulling the transmission. so long as it's done in the day and operable, doesn't cause toxics to spill, doesn't produce unwanted annoying noises, isn't a safety issue, is kept clean and neat, what's the issue?

If it makes you feel any better, I joined Bigger Pockets about 2 1/2 years ago....I didn't write my introduction post until 6 months later (1/13)....and - IF things go properly in the next ten days, we will FINALLY close on our first rental property since selling our last one in Fall '12....even though we were really hoping to get going in early 2013. 

So the bottom line, if I'm figuring everything properly, is that the other 2 families could be paid the same amount they would on a traditional sale, even if they sold it to me at a lower purchase price.