Buying home with a tenant, but tentant is vacating voluntarily.

[coffeebean]

California.

I am buying a single family home in San Francisco with a tenant. Just signed deed and closing escrow tomorrow. Tenant is voluntarily vacating and wrote me a signed letter confirming she is voluntarily vacating and asking me to apply the last months rent into this months rent.

I plan to live in the home, so when I made my offer I had in my mind I would either need to buy her out or do a owners move in eviction. But since she decided to just move out, I think I don't need to do anything.

Anything I should be concerned about?

Thanks

 

[Zigner]

Only if she doesn't move

 

[sandyclaus]

California.

I am buying a single family home in San Francisco with a tenant. Just signed deed and closing escrow tomorrow. Tenant is voluntarily vacating and wrote me a signed letter confirming she is voluntarily vacating and asking me to apply the last months rent into this months rent.

I plan to live in the home, so when I made my offer I had in my mind I would either need to buy her out or do a owners move in eviction. But since she decided to just move out, I think I don't need to do anything.

Anything I should be concerned about?

Thanks

Just ONE thing.

Have you had an opportunity to inspect the property for damage that could have been caused by the tenant? Did the seller provide you with any kind of report or documentation of the pre-move-in condition of the property prior to this tenant taking possession? Did the seller transfer to you the security deposit funds in full? Can you verify that the tenant actually paid a last month's rent in addition to the security deposit? Is the tenant current on their rent?

The only thing I'd be concerned with is that the tenant will end up taking advantage of the situation and leaving you holding the bag, financially. If they didn't provide the seller with a last month's rent, then there isn't any money to apply to the current month. Then there's the issue of potential damages caused by the tenant that you would end up paying for without security deposit funds if they aren't there to use.

If all of the above has already been settled, and it's just the matter of getting rid of the tenant so that you can owner-occupy the rental property, then go for it. But there's still the possibility that the tenant WON'T vacate at the end of the month, and you'd be stuck having to evict them.

 

[coffeebean]

Have you had an opportunity to inspect the property for damage that could have been caused by the tenant? Did the seller provide you with any kind of report or documentation of the pre-move-in condition of the property prior to this tenant taking possession? Did the seller transfer to you the security deposit funds in full? Can you verify that the tenant actually paid a last month's rent in addition to the security deposit? Is the tenant current on their rent?

Thanks for the advice, see some answers below.

- I did a full inspection of the house with a professional inspector before making offer. The main issues with the property are not tenant related but just old roof, plumbing, electrical, etc... We didn't see anything concerning in relation to tenant related conditions.

- No, seller is old and doesn't have a pre move in report, that's why would be very difficult to charge deposit for any work that needs to be done after move out

- Yes I have the last months rent and deposit coming back to me in escrow. Just signed the paper today.

- Tenant is current on the rent.


Thanks

 

[coffeebean]

Any additional feedback?

I was wondering if I still need to:

- Send letter to tenant 2 weeks before last day to tell she has the rights for inspection ?
- When I give her the check for interest on her deposit, should I make her sign a receipt?
- Should I also make her sign a letter that says something to the effect of "by my request, the security deposit of $XXXXX, was used toward the last 15 days rent. The landlord doesn't owe me any amount from security deposit or interest"?

Any other suggestions? I have never been a landlord before, and will be for only 45 days.

Thanks

 

[coffeebean]

I was hoping to get additional feedback.

Thanks

 

[Searchertwin]

Any additional feedback?

I was wondering if I still need to:

- Send letter to tenant 2 weeks before last day to tell she has the rights for inspection ?
- When I give her the check for interest on her deposit, should I make her sign a receipt?
- Should I also make her sign a letter that says something to the effect of "by my request, the security deposit of $XXXXX, was used toward the last 15 days rent. The landlord doesn't owe me any amount from security deposit or interest"?

Any other suggestions? I have never been a landlord before, and will be for only 45 days.

Thanks

What you suggested would be a very good idea. This protects you if she comes back stating different.
Tenants seem to be willing, till it gets down to the nitty gritty of things and they change. So protect yourself.
But from what you said in your post, I don't see a problem if you do all the above.

The only thing I would do different is that I would give a day and time to have an inspection, not that she has the right.
If she can't make it at that time, than you will make arrangement to please both of you. This way she can't come back and say, "You never gave me a time".

Follow state law on returning a statement with a copy of all sign paperwork, a note that pictures were taken, and send it by a crr letter.
Indicate that if she disputes any of this, to please respond withing x amount of days from letter.
Keep it simple.

 

[coffeebean]

Follow state law on returning a statement with a copy of all sign paperwork, a note that pictures were taken, and send it by a crr letter.
Indicate that if she disputes any of this, to please respond withing x amount of days from letter.

Thanks for the feedback. In regards to the above, I don't really plan to charge her for any cleaning or small fixes. I won't even have her security deposit as it's being applied towards the rent. This is an amicable situation, where just the fact that she is voluntarily leaving, is saving me over $10k (relocation assistance required by San Francisco + attorney fees) and possible getting sued for wrongful eviction in the future. So I am VERY happy that she voluntarily moving out. I might take pictures and give her all the documents, but don't plan to say she needs to pay for anything.

I know the place is actually in better condition than when she moved in. She took very good care, and inclusively painted the outside from her own pocket less than 1 year ago.

 

[Searchertwin]

Thanks for the feedback. In regards to the above, I don't really plan to charge her for any cleaning or small fixes. I won't even have her security deposit as it's being applied towards the rent. This is an amicable situation, where just the fact that she is voluntarily leaving, is saving me over $10k (relocation assistance required by San Francisco + attorney fees) and possible getting sued for wrongful eviction in the future. So I am VERY happy that she voluntarily moving out. I might take pictures and give her all the documents, but don't plan to say she needs to pay for anything.

I know the place is actually in better condition than when she moved in. She took very good care, and inclusively painted the outside from her own pocket less than 1 year ago.

Just make sure you get her signature to what you stated above. If not, she will turn around and say it was an illegal eviction. Sorry to say, that's how some people are. Sweet as honey till it comes to money. I would take pictures and her sign.
She might come back wanting the cost of paint and labor because she planned on staying a long time till you decided to evict her. Cover yourself. Tell her no hard feelings, but you want to be safe than sorry.

 

[coffeebean]

Thanks. She can't claim it's a wrongful eviction if there is no eviction. She is voluntarily vacating and she has written a letter and signed stating all the above.

Thanks