QUOTE (investmart @ Dec 18 2007, 11:03 PM) I was told there are no tenant leases signed between current owner and tenants in a multi plex i put an offer to purchase. is this possible? no contract with tenants? (the owner owned the property for 5 years and most tenants live there 3 years) THANKS
It is possible, as alot of landlords don`t do the steps required. When I take posession of a new building with existing tenants and there are no leases or inspection reports, I meet with each tenant and tell them "it`s important for us to meet and get our paperwork in order", "your damage deposit has been transferred to me by the previous owner and if you move out while I am the owner, I want to make certain that you are able to get your proper refund". I then go on to do a walk-through report with them, and sign a lease. The lease can be for a fixed term or if they offer resistance, you can go month-to-month, and explain that a month to month lease will protect their rights and let both sides know what is expected from each as far as rules etc. I also proceed to write rental increase letters to the tenants I want out, or to the tenants that are below the current market, be fair in this regard, I usually only hit a maximum of a $100 increase depending on their current rate
It is possible, as alot of landlords don`t do the steps required. When I take posession of a new building with existing tenants and there are no leases or inspection reports, I meet with each tenant and tell them "it`s important for us to meet and get our paperwork in order", "your damage deposit has been transferred to me by the previous owner and if you move out while I am the owner, I want to make certain that you are able to get your proper refund". I then go on to do a walk-through report with them, and sign a lease. The lease can be for a fixed term or if they offer resistance, you can go month-to-month, and explain that a month to month lease will protect their rights and let both sides know what is expected from each as far as rules etc. I also proceed to write rental increase letters to the tenants I want out, or to the tenants that are below the current market, be fair in this regard, I usually only hit a maximum of a $100 increase depending on their current rate
Very possible, and quite likely. But do have something signed absolving you of any tenant denying this. As a conditon of the purchase due diligence have written verification of security deposit/accured interst, current copy of any lease. I will/can effect your financing capability. Remember you may qualify for the mortgage, but does the property?
Dennis Epp
Dennis Epp