Does this complicate the process either before or after the transaction? I've seen people who've bought property then tried to evict all tenants find it quite difficult. To avoid such complications should you demand that owner evict the tenants, if say you want to renovate the houses they live in, before the transaction is completed?
If you purchase a home that has tenants and it you have to consider the limitations that could be inherited by yourself by purchasing a property. The current landlord perhaps has a contract with the tenants and a date that the tenants are to leave the property. If you purchase a property that he has tenants in it if you intend on leaving the tenants in that property but I don't see any cause to evict them but if you intend on going through major renovations to the property then you perhaps want to discuss that in a meeting before making the full purchase of the property where the tenants and landlord are present creating clear and concise outlines for the potential renovations and the date that the lease ends with the tenants.
To me this is simple. If you are buying it as an investment property, then having a tenant is a good thing. Saves you from having to find a good one and seeing as he is still living there he probably is a decent tenant. If it's for your own use, then I would make sure there are no tenants... let the old owner sort it out. This saves you some time.
In my country, tenanted properties attract a slightly higher price. This is because the bother of finding someone has been taken away and the property will generate income fort he buyer immediately.
It's the same in most countries, since a big portion of the real estate market is owned by investors, not home owners. And yes having a tenant, for an investor, means that someone already did the work for you.
Yeah, it's the same thing in my country. It proves that the property HAS value and there would be tenants in the future.
Surely it's better because then you don't have the hassle of finding news one. Although perhaps having such terrible tenants has made the landlord want to escape the rental property business.
A very good point actually! I personally know of one person who let go of a rental property (though he has since bought another one) simply due to the complications that he had with the tenant. Though he did it the proper way, evicted the tenant before selling the property, but I'm sure that there are people who will not be this honest.
Yep, there's a lot to consider. One, if we buy property with tenants the contracts should be respected, but what you say makes total sense, some owners might be selling to get rid of terrible tenants.
