Whether you're buying an investment property, and even when you're buying a primary residence, there may be occupants already in place. In either case, you need to know the responsibilities and the potential risks you're taking on.

If there's a lease in place, you've just become a landlord. If it's a foreclosure sale, you're obligated to follow the state laws that protect the former owners.

Tenant Rights

The sale of a property does not change the terms of any tenant leases that are in place. Leases stay attached to the house, even when ownership switches hands.

The takeaway: The lease that’s in place before you buy the property remains in effect even after you close on it, so you cannot legally raise the rent, modify the clauses or agreements, or evict a tenant before the end of a lease term just because 🔯you’re the new owner.

If 🐼you want the tenants to move out, you have a couple of oꩲptions:

• Submit an offer on the house that is contingent on it being vacant when you close. This puts the burden on the seller to break the lease or offer an incentive to the tenants to leave early. If the seller is unable or unwilling to do this, you can walk away from the deal.
• Buy the property and then renegotiate the terms or buy out the tenant(s) yourself. Keep in mind that a tenant is under no obligation to accept any new terms if a valid lease is in place. You could face a lawsuit if you break the lease or try to force an eviction.

Landlord Obligations

As the new owner, you 澳洲幸运5官方开奖结果体彩网:inherit the landlord's obligations. You are responsible for maintaining a safe and habitable property for y꧟our tenants.

In general, you must (at a minimum):

• Keep common areas such as hallways and stairways in a safe and clean condition.
• Make sure structural elements are safe and intact (floors, walls, stairs, elevators, and roofs).
• Ensure that electrical, plumbing, heating/air conditioning, ventilation, and sanitary systems are properly maintained.
• Make sure tenants have access to running water, hot water, and heat in reasonable amounts at reasonable times.
• Provide trash containers and arrange for trash removal.
• Manage known environmental toxins, including lead paint dust and asbestos.
• Exterminate rodents and other vermin infestations.

Landlord obligations vary by city and state. Your local laws may add other requirements regarding habitability. It's wise to review them in advance.

You'll also need to read the lease to find out any other specific obligations you're taking on, such as mowing the lawn or paying for utilities.

Changing or Terminating a Lease

If the tenant has a 澳洲幸运5官方开奖结果体彩网:month-to-month lease, a landlord can terminate the tenancy or increase the rent before the start of a new month, provided you give the appropriate notice. This 🎉is usually 30 day🧸s but the details are determined by state law and can vary according to the number of months the tenant has occupied the property.

If a fixed-term lease 🐲is in place, for a year 🦩or however long, the tenant in most cases has a legal right to occupy the home for as long as the lease is active, regardless of who owns the home.

Early Lease Termination

There are a few instances when the lease can be t🧜erminated early.

Some leases specify that the seller of the property has the right to terminate the lease if the property is transferred to a new owner. In that case, the lease c🐻an be legally terminated when you buy the home.

Also, if you buy a property as a result of a 澳洲幸运5官方开奖结果体彩网:foreclosure, you must follow your state’s rules regarding notice to vacate. In Washington state, for example, you must give renters 60 days’ notice to vacate a foreclosed property before you can begin an eviction action.

In some cases, tenants will agree to move out early with a “cash for keys” offer from the new owner, trustee, or bank. 

If you plan on using the home as your primary residence and not as a rental property, you may be able to use an ownꦚer move-in eviction (OMI) process to get a tenant to move out. Rules vary by state, but in general, you must move into the home within a prescribed number of days of the eviction (often 60 to 90 days) and live in it as your primary residence for a minimum number of years (usually one to five). 

First Steps for Buying a Home With Tenants

An important first step is to review any lease documen🍒ts before you close so you know what you’re getting into and so you can ensure that the lease is well-written and structured to follow local rental laws. If👍 anything seems off, demand that the seller fix the language as a condition of your closing.

It’s also important to get the records for any prepaid rent and security deposits and make sure any deposits are transferred to you at the closing. You’ll probably have to keep the security deposit in a trust account (depending on your sta💝te).

The closing agent also should pro-rate the current rent🅠 payments between you aওnd the seller.

Also, be sure the seller provides documentation regarding the condition of the property before the tenant moved in. If there’s damage, you’ll have a hard timeඣ proving the tenant is responsible without a check-in repo📖rt.

If possible, meet with the tenants prior to closing so you can verify the current condition of the home and discಞuss the lease terms.

Finally, make sure you are appropriately insured. A standard 澳洲幸运5官方开奖结果体彩网:homeowner policy typically won’t do the job. Inform your insurer that the home is being r🐽ented so that you’ll be covered in case of tenant injuries, negligence, and other losses.

The Bottom Line

You may be able to get an exceptional deal if you buy a residential property that has tenants in place. But, as always, you need to do some research to know exactly what you're getting into. You're not just becoming a property owner. You're becoming a landlord, with all the responsibilities that entails.