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hector h,, Other/Just Looking in 03079

Buying a multifamily house, is it good to keep the tenants?

Asked by hector h,, 03079 Thu Mar 21, 2013

Or have them leave before closing? The current tenants we were told don't like to be bothered and in order to see the part they were occupying the owner said we would have to make an offer first. now to look at the other part of the house the tenant said he needed more time in advanced to look at the house, they out of Lease and been there for a long time. How to identify a problematic tenant??

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I'm a landlord and publisher of RentLaw.com and SmallLandlord.com (a new service coming soon). I've been a landlord for 27 years and a commercial agent.

1. First, you HAVE TO see the house - unless you are an outside investor and have a a method to manage the property.

2. Hire a local REAL ESTATE attorney.

3. Tenants aren't always cooperative.

4. Need to know what rents are, how long tenant has been there their payment history etc.

5. Need to know what security deposits have been paid to current owner, where they are deposited and current amounts etc.

6. The CORRECT thing to do and a bank will usually require this is the ESTOPPEL LETTER OR CERTIFICATE. An estoppel letter (sometimes called an estoppel certificate) is a certification as to factual information about a tenant’s lease as of the time the tenant signs the estoppel letter. A landlord may request an estoppel letter in connection with a sale of a property or in connection with financing for the property. Both a potential purchaser and a lender will want to know the status of the leases on the property, as neither will want to commit time and resources for a property where there are problems. An estoppel letter is a good way to identify a negative issues

More on RentLaw.com The National Landlord Tenant Guides.

PS - Landlording is NOT for everyone - not always easy. BE PREPARED
2 votes Thank Flag Link Thu Mar 21, 2013
I would not make an offer until you see the house. Tenants who pay are great. If you are looking to evict one make sure you have it written in that it be unoccupied.
1 vote Thank Flag Link Thu Mar 21, 2013
Hi Héctor,
there is a bit of a leaning curve to be a landlord in MA. I would ask the current owner for an entire tenancy history. This will give you some sort of perspective as to wither or not too keep the tenants but ultimately that decision is yours. Also, I would never make an offer without seeing the entire property first. That request to me is just ridiculous. Best of Luck
Web Reference: http://wenrealty.com
1 vote Thank Flag Link Thu Mar 21, 2013
Hi Hector,

You should do some back ground work, you need the tenants information, are there paying on time, how much are there paying, it’s at market value, work history, etc.. Once you have this information you could do an educated decision to keep or let them go. Remember that being a landlord it’s a business and like any other business there are some risk and rewards. Learn first what it takes to be a landlord before you become one.
1 vote Thank Flag Link Thu Mar 21, 2013
Sounds like you have found a problematic tenant, next property or get in, buy it, and evict.
0 votes Thank Flag Link Thu Mar 21, 2013
Never make an offer until you see the entire home. Get yourself an exclusive buyer broker asap to help educate you and protect your interests! Also, if these tenants have an expired lease and are still living there that could be very problematic so you might consider only buying the house tenant free.

The first thing to do is get yourself your own agent to guide you through the process.

Good luck!

Territory.com
Massachusetts Premier Buyer Brokerage
617 848 5407 x701
Web Reference: http://territory.com/
0 votes Thank Flag Link Thu Mar 21, 2013
If they are good tenants, then it is in your interest to keep them. If they are bad, you don't want them. When I make an offer for a buyer, I always ask for all the tenant information to see if they are paying market rate, what is included in the rent, how many people etc.

If you keep the tenant, make sure that the last month rent and security deposit accounts come with the tenant and that you, the seller and the tenant are in agreement as to which accounts exist.
0 votes Thank Flag Link Thu Mar 21, 2013
Kind of backwards to make an offer to be able to see the other unit.

It is nice though to have a tennant that is in there assuming they pay rent on time. Only issue would be if they are paying lower than market rent. You have to weigh good tenent/lower market rent vs trying to find a tennant yourself.

I would advise you to consult a real estate attorney so you can get a handle on what to expect as a land lord.
0 votes Thank Flag Link Thu Mar 21, 2013
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