Under state and federal laws, tenants of a home are protected. There are two scenarios that have tenants living in a newly purchased home. The first is when there was a lease in place prior to the sale of the home. A lease is a legal and binding contract which allows the current tenants to live within your new home. The second scenario is when tenants live within a home without a lease. In this scenario, there is a process that needs to take place in order to evict them.
The common problem with the two above scenarios is fairly straight forward which is that you may not even want to have tenants living in your new home. The ordeal of trying to evict them can be long and strenuous and even expensive. Another problem you may face is the rent that the tenant is paying simply isn’t worth the space they are occupying and you are actually losing money by having them reside in your home. Also, in case you forgot what it is like renting, remember that security deposit you had to provide when you found your first rental apartment? Well, these tenants probably have a security deposit as well. You might be stuck with that bill also if they decide not to renew their lease once it expires.
Our advice is this; if you are in the market for a home, try finding a home without any tenants living in it. If however you found a home and a lease is in place with someone occupying space, have The Rozhik Law Firm examine the lease agreement that is in place in order to value and assess what the tenants will actually cost you in the long run. At times, it can be profitable, but allow us to be the judge of that.