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Q: We have just bought an investment property which the seller lived in and rented out the other side. The seller has already agreed to vacate prior to closing but we do not know what to do abut the tenant. How do we get them out of the second unit?
A: Acquiring rental property which is currently occupied can be a good or a bad thing. Depends. I love that word. Depends.
Depends on:
The local sheriff’s department is an excellent place to start with a quick phone call to ask them what is the procedure, what forms are required, how much it costs, how much notice must you give, etc.
Additionally, they can probably direct you to the correct website to study up on this new aspect of your adventure as a new landlord.
P.S.
I almost forgot. You might consider offering them “CASH-for-Keys”. That’s a tidy little concept which is fast gaining popularity as a way to get folks out of foreclosed homes and could be used in this scenario as well.
“CASH for KEYS” is handy when you need someone to go away quickly, quietly and without leaving a mess. Simple—You offer cash as an incentive to vacate your property. How much cash depends on their needs and how badly you want them gone. Is it worth $1000 to have them out in 10 days? It is if the eviction process takes months and could cost you a lot. It is if the clean-out could cost you twice that amount or if they do damage on their way out as a way of getting back at you for a forceful eviction. Is it worth $500 if they leave in a month but agree to leave the home in good condition, promise to remove all trash and other debris and go away nicely?
As a Fannie Mae Broker-Specialist I was authorized to grant up to $1000.00 for ‘cash-for-keys’ provided you agreed to leave the home broom-swept, everything intact and you vacated by the time you said you would. Cash-for-keys is a reasonable request/offer when you have acquired real estate and need to remove the ‘body’ which remains. The amount is negotiable and should hinge on the size of house, time of year, how fast the home will be vacated, is the money required for a deposit on another property, moving expenses or other legitimate need to facilitate the ‘body’ disappearing.
General guidelines for cash-for-keys include:
Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
A: Acquiring rental property which is currently occupied can be a good or a bad thing. Depends. I love that word. Depends.
Depends on:
- Whether or not your contract says that the purchase is subject to the current tenant’s lease. What that means is: If their lease expires in 10 months, they belong to you and they stay for the next 10 months
- If your contract states that their tenancy expires if there is a transfer of the real estate, then you have the RIGHT to get rid of them and we need to get to the “HOW”. But before we do, if they are good paying tenants, why don’t you want to keep them? Do you have other plans for the property which requires that they move? Did you forget to consider this before you started the buying process?
- If you are not absolutely sure what your state law is concerning landlord-tenant rights, now would be an excellent time to check. And
- Finally, if they will not leave nicely, and you really want them to go, then you will need to do a forceful eviction.
The local sheriff’s department is an excellent place to start with a quick phone call to ask them what is the procedure, what forms are required, how much it costs, how much notice must you give, etc.
Additionally, they can probably direct you to the correct website to study up on this new aspect of your adventure as a new landlord.
P.S.
I almost forgot. You might consider offering them “CASH-for-Keys”. That’s a tidy little concept which is fast gaining popularity as a way to get folks out of foreclosed homes and could be used in this scenario as well.
“CASH for KEYS” is handy when you need someone to go away quickly, quietly and without leaving a mess. Simple—You offer cash as an incentive to vacate your property. How much cash depends on their needs and how badly you want them gone. Is it worth $1000 to have them out in 10 days? It is if the eviction process takes months and could cost you a lot. It is if the clean-out could cost you twice that amount or if they do damage on their way out as a way of getting back at you for a forceful eviction. Is it worth $500 if they leave in a month but agree to leave the home in good condition, promise to remove all trash and other debris and go away nicely?
As a Fannie Mae Broker-Specialist I was authorized to grant up to $1000.00 for ‘cash-for-keys’ provided you agreed to leave the home broom-swept, everything intact and you vacated by the time you said you would. Cash-for-keys is a reasonable request/offer when you have acquired real estate and need to remove the ‘body’ which remains. The amount is negotiable and should hinge on the size of house, time of year, how fast the home will be vacated, is the money required for a deposit on another property, moving expenses or other legitimate need to facilitate the ‘body’ disappearing.
General guidelines for cash-for-keys include:
- A written agreement which states all the particulars—how much, to whom, by whom, what is expected, when will money be delivered
- It must be signed by someone in authority with the agency who is offering the cash
- You should assume that if you do not have a copy—you do NOT have an agreement
- Terms of acceptability—home broom swept, all trash removed, etc.
- Specific date and time these must be completed
- Other details as the parties deem necessary
Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
