Bought tenant occupied property


#1

had questions regarding a tenant occupied property; when and if I do give them the 60 day notice am I allowed to collect rent? if I check the condition of the property prior to the tenants moving out and upon the move out inspection there has been damages are they liable? I’m in the process of giving them cash for keys but was wondering where I stand as the new landlord just in case.


#2

Hi Steve,
Under the Protecting Tenants in Foreclosure Act you are required to give them 90 days notice. Although technically the rent is due during this period the statute is silent on the collection of rent. As I under stand it you could evict them after 90 days and seek a judgment for the past due rent but you would not want to evict them for non payment during the 90 day period.
If you negotiate the cash for keys agreement then they are delivering the property in agreed upon condition in exchange for the keys.
Proceed with caution when dealing with tenants and also consult with an attorney when necessary. The laws tend to favor the tenants.


#3

Thanks Michelle.


#4

Michelle - This is a messy area. I would differ with you about payment of rent. I think you could give them a 3-day pay rent or quit Notice if/when they fail to pay rent. Also, it would appear, to me, that the fcl. buyer may/does owe deposit monies that may have been paid to the former owner. Last month’s rent, cleaning deposit etc.


#5

HI Miketh, I spoke to an attorney on this and after reviewing the PTFA he suggested not pursuing the eviction for non payment until after the 90 days expired. It is so poorly written that I think the point could be argued either way. You are the experience in the group and I would always default to you over any attorney because you are actually out there doing it and not talking about it!


#6

Just to clarify, the new auction buyer has to pay the deposit to tenant when they move out? even through it deposited with the previous owner? Another question is: Can the previous owner ask to take his appliance provided to the rental property after the auction?


#7

Rachel, As the new homeowner (via trustee sale acquisition), I would ask your holdover tenant to contact the former owner and make a good faith effort to obtain their deposit back. If the tenant gets the stonewall treatment (and they likely will, but it's worth a try) then you'll have to pay the tenant his/her deposit upon move-out. You could pursue the former owner in court for the deposit but that may not be worth time/effort/.


#8

In answer to the second part of your question … In most cases a washer/dryer and any “NON-built-in” appliances (e.g. a refrigerator on rollers) are considered personal property of the now ex-owner and he/she take them if they please. Any fixture, however, comes with the property you acquired and must remain in place. Here’s one definition of “fixture:” a piece of equipment which has been attached to real estate in such a way as to be part of the premises and its removal would do harm to the building or land. Thus, a fixture is transformed from a movable asset to an integral part of the real property. Essentially a question of fact, it often arises when a tenant has installed a lighting fixture, a heater, window box, or other item which is bolted, nailed, screwed or wired into the wall, ceiling or floor.