Home Buying in Denver>Question Details

David, Home Buyer in Denver, CO

Thinking about buying a home currently occupied by tenants...

Asked by David, Denver, CO Thu Sep 25, 2008

If I were to purchase a home that is currently occupied by tenants (for roughly 6 more months), what options do I have of getting into the property asap?

I am unsure of what type of lease/agreement the tenants are currently under. I assume the laws lean towards the tenants when speaking to rights of the property. Is there anyway, short of coming to an agrement with the tenants, that I could get myself into this property before their agreement ran its course?

It is currently being rented at a rate that would only cover half of the mortgage payment. I'm hard pressed to spend a ton of money on a place that I would not be able to live in for 6 months while trying to find a rental for myself in the mean time.

Any help would be appreciated!!

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Answers

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Definetely get the copy of the lease as recommended. It is also a good idea to try and negotiate the tenants moving before buying. It is quite possible in the curent market to get concessions from the seller. Perhaps they can pay "X" amount of dollars to the tenants in order for them to break the lease. Please check on legality of this in your area. It works well here though.
You could also negotiate the contract so that settlement would not occur until the tenants lease is up. If you do buy the house with tenants, be sure to have the security dseposit transferred to you at settlement.
2 votes Thank Flag Link Thu Sep 25, 2008
I think the lease will carry on and you will be the landlord on the lease. I think getting a copy of the lease is very important. This will affect your loan as well if it is leased for 6 months it is not an "owner occupied" it is an investment. Looking at the lease is what you should do then you will know how to act.
2 votes Thank Flag Link Thu Sep 25, 2008
You might want to take a look (your right) at the lease. There may be a termination clause in the lease that terminates the lease at sale. There are no standard commission approved leases in Colorado, so you need to take a look, and, perhaps, consult an attorney to see what your options are.

Chuck Strauss
720-318-7598
http://www.denverhomeguru.com
1 vote Thank Flag Link Thu Sep 25, 2008
CO law provides that the lease carries with the sale. Unless their lease has some additiional provision (highly unlikely, but do read it carefully), you would be their landlord. But, in real estate as in life, everything is negotiable. Your agent should confer with the listing agent to find out if the tenant may be amenable to moving out - stranger things have happened. & if not, you may ask if there is anything you could offer the tenant to change their minds (pay their security deposit at a new place, offer to pay for their moving van, things of that nature).

One consideration from personal landlording experience - if you do purchase the property & keep that 6-month lease extended, be prepared for 1)anything to happen to the condition of the home 2) trouble to arise in rent payments 3) laws to lean heavily toward tenants in the eviction process, you don't want to end up with a squatter. So if you do move forward, make sure you & your agent carefully carefully carefully research the tenant, their credit & their payment history.

You may decide that with so many homes on the market to choose from, the additional stress of landlording may not be your cup of tea. Best of luck, NIcci@NicciHyatt.com
0 votes Thank Flag Link Thu Sep 25, 2008
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