I just bought a property at auction and it is tenant occupied. This is a great neighborhood (Del Webb - 55 and older) and I would suspect the tenant is good. So I would be open to keeping them in place. Any words of wisdom regarding contacting the tenant and this process?
You didn’t mention which state. Generally, I recommend waiting until you receive the deed to contact anyone. Doing it before you have the deed in hand increases your risk of the sale being overturned, or in CA, the tenant using SB1079 to purchase the properties themselves. Once you are certain that the property is yours, I’d personally act quickly to make sure all future rents go to me, rather than the prior owner. Ideally I also try to get the tenant to sign a new lease with me directly, though, again depending on the state, they may have some rights under their prior lease until they agree otherwise.
Hope that helps.
This is in California, so I will look up SB1079. Thanks for the advice!
I did a deal (CA) in the past where the landlord went into foreclosure because of the tenants nonpayment, If I were you I would find out why the original owner lost the house just to ease my mind about the tenant.