Buying a rental that has a tenant

[BSH]

Hello all. We're in the process of negotiating the purchase of a small multi-family here in our area, and one of the units has a tenant in place. Long story short, the realtor is trying to determine if there is a written lease in place or if it's just a verbal month-to-month deal. Regardless, it is a family member who is renting this little 1/1 unit, and he's paying at least $100 below market rent on the place. He's taking tolerable care of it, but my tenants are usually much cleaner. Also, he has a perfectly good central heating system but uses the cook stove to heat, which is strictly prohibited under my lease agreements.

So, for all those reasons and more, I really don't want him when I take possession, and I know I'm not required to take him. But I'm not sure how to word the contingency paragraph in my contract so that it is clear I want the current owners to get rid of him and have him gone before closing.

I know I could just say, 'hey, the sellers need to get rid of the tenant in unit #3 before closing, or we don't close,' but I'm sure there's a much more savvy approach here. My brain is not cooperating today though. :-)


FYI, we're in SC.
All help is greatly appreciated.
Thank you thank you thank you!!!!!!!

[Burke]

How about: "Sale is contingent on all units completely vacant by 5 days prior to close of escrow." or something similar?

[Debbie]

Burke and Tim gave you great advice.

I'd be more concerned if the seller's relative/tenant has an ironclad contract allowing the tenant to live there permanently and reduced rate. It's been known to happen. Hopefully, that is not the case.

[KCHomebuyers]

If you're buying, you should be able to get a copy of all the contracts that he has on file. I'd take a look at those and make a list of items that you can use to either raise the rent or get the tenant to leave.

There's most likely a clause that allows you to make changes with 60 days notice, and if that's the case, then you just let the tenant know that in 60 days his rent goes up to full market. And oh by the way, you're violating your lease by doing x/y/z and if you keep it up, you'll be asked to leave.

If you don't have any protection under his existing contracts, then I'd use that as part of the negotiation - you'll have to put up with that sub-par tenant for x number of months at what amounts to a $100 loss each month of good rent!

BTW Debbie - I'm STILL working on your site :) send me an email!