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Renting short sale condo to buyers

Posted by Kathy Posey on June 23, 2012 at 5:25am in Short Sale Discussions
Need some sound advice: We are the buyers of a condo in a college student complex. The unit is professionally managed and has two month to month tenants. We are a month in on the process with Chase (one loan). Our daughter starts school in mid-August and it's unlikely we will have closed by then. We asked the prop mgr if they could give the current tenants their 30 day notice and let us lease it, and they said yes, as long as its a 1 year lease. State law protects tenant leases after foreclosure, and for a sale, unless new owners will occupy, if for some reason the deal falls out. Seems like an ideal situation for us, so are we missing a down side? Also, we are assuming that since it is the seller that has the prop mgmt agreement, we would be under no obligation to the prop anger upon sale? Btw, there is nothing in our purchase agreement about the property manager or tenants. Anything we are not considering?

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Replies

  • Laura Marshall June 23, 2012 at 2:27pm

    I am in California. If the month to month tenants have been living there for a year (California Property), they will need a 60 day notice. I would want clarification prior to signing the lease, as to who is paying the property manager.  It is not safe to "assume" anything. EVERYTHING needs to be in writing. Is he receiving a 1 time payment at the time the lease is signed, or is he collecting monthly payments as well ? What will you do if the property goes to foreclosure sale and the purchaser wants to be an owner occupant ? What will you do if the tenants don't move ? Who is paying for the unlawful detainer action? How long will it take if they fight it? It takes MONTHS in California. What happens if the tenants damage the property? That's all I can think of at the moment :). I hope that everything works out perfectly !!!

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