The real estate market is booming right now. While many people are finding great homes that they can move into as soon as they close, others find that their dream home already has tenants living in it.
Buying a home that already has tenants living in it is a challenge. You can’t just remove them on closing day. Instead, you have to understand the rights of the tenants and the process you’ll have to go through with them.
Find out about the lease
Residential tenancy leases are tied to the home, not to the landlord. This means that the terms of the lease remain in place even if the house is sold. You can’t raise the rent or remove them from the property as long as the lease is in effect.
Depending on the terms of the lease, you may be able to buy out the lease so the tenants will move. You can also just wait until the lease is up and refuse to renew it, but you’d have to act as the landlord in the interim. You may also submit an offer with the contingency that the property is vacant when you take possession of it so the seller would have to get the tenants to move out before closing.
It’s imperative that you remember that you have rights, but so do the tenants. Making sure that you understand these can help you as you deal with the tenants if you choose to move forward with the purchase of the home. Working with someone who’s familiar with these situations may be beneficial since you won’t have to try to figure out your next steps on your own.