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You may not be able to ask for the house to be turned over tenant-free. Most places have laws about buyers honoring valid leases.
If it were me, I'd start by having an inspector look over the property. Assuming the removal of the wall and the attic occupancy are code violations, the inspector will identify them and you can use their report to request that the property be turned over to you with the necessary repairs made (not the same as kicking the tenants out).
If I couldn't get an inspector, then I would buy the place, talk to the tenants, and inform them that the alterations they made are not code compliant and that they must vacate the attic and repair the walls attic and basement to their original condition. If they fail to do so they will be in violation of their lease and can then be evicted.
If their lease was set to expire in a few months, I would probably not actually proceed with eviction proceedings, but merely wait for the lease to expire and then decline to renew it. And then if they vacated without repairing the wall, attic, and basement, I would deduct that from their deposit.
If the space is not included in the rent... it is not theirs.
Many times, the owner will give notice to vacate at the earliest legal moment by stating the intention to move into that space... in my city this is allowed as long as the owner actually moves-in.
Just realize, if you do go through with this, that you are buying a problem that will have to be dealt with... problems often provide opportunity for savvy investors.
I can think of lots of related problems... Your may be denied insurance coverage, the wiring may not be up to code or not running from the proper electric meter, fire code issues... etc.
Good you are thinking about it now so that you can make an informed decision...
If the space is not included in the rent... it is not theirs.
Many times, the owner will give notice to vacate at the earliest legal moment by stating the intention to move into that space... in my city this is allowed as long as the owner actually moves-in.
Just realize, if you do go through with this, that you are buying a problem that will have to be dealt with... problems often provide opportunity for savvy investors.
I can think of lots of related problems... Your may be denied insurance coverage, the wiring may not be up to code or not running from the proper electric meter, fire code issues... etc.
Good you are thinking about it now so that you can make an informed decision...
Hi Ultra runner. Thank you for encouraging words and cautions. I actually already invested in a full and painstaking inspection of the vacant unit--it is in surprisingly fine shape--it is an old farmhouse--the electricity is new and well organized; structurally, the house is sound; the furnace is new, although the inspector told me it isn't installed in the most efficient way. It needs storm windows throughout--then again, we have been having very mild winters.
Cosmetically, it's a mess--needs new tile, paint (inside and out) carpet. If I buy, I hope to do much of that myself.
I haven't seen the occupied unit--If I go forward, I plan to write the offer contingent upon a township and second private inspection for second unit. I was worried about insurance, too--the house doesn't seem to have a firewall--so I want to be able to withdraw my offer if it is not (reasonably) insurable or up to code on that account. I'll be paying for the inspections myself, and the seller is already emotional about all the inspections (by that, I mean pissy) but he can sell to someone else, then.
I did not look to be a landlord, but this old farmhouse is really nice, in a nice part of a good town.
You may not be able to ask for the house to be turned over tenant-free. Most places have laws about buyers honoring valid leases.
If it were me, I'd start by having an inspector look over the property. Assuming the removal of the wall and the attic occupancy are code violations, the inspector will identify them and you can use their report to request that the property be turned over to you with the necessary repairs made (not the same as kicking the tenants out).
If I couldn't get an inspector, then I would buy the place, talk to the tenants, and inform them that the alterations they made are not code compliant and that they must vacate the attic and repair the walls attic and basement to their original condition. If they fail to do so they will be in violation of their lease and can then be evicted.
If their lease was set to expire in a few months, I would probably not actually proceed with eviction proceedings, but merely wait for the lease to expire and then decline to renew it. And then if they vacated without repairing the wall, attic, and basement, I would deduct that from their deposit.
the truth is--I really want to keep the tenants. They seem like a nice family. Every time I go over, I see the dad outside playing basketball with the kids. I chatted with the youngest, I guess, who was walking the dog, and he seemed like a polite, nice kid. They've lived in that place for seven years. It just might be worth the money to bring that attic up to code, even if it costs me a pretty penny. From the cost of the conversion--I can subtract the cost of getting new tenants--right? Cause if I don't fix the attic, and I have to get new tenants--that will cost me thousands right there.
The more I know about the seller, the more I think he told them to knock the wall down--how the heck would they know about it, otherwise? He's a bit of a tricky guy.
It never hurts to ask for a variance, for a small fee the town may just say OK.
I don't actually know what is wrong with the attic, and I don't think I will get real information from the seller. Right now, I can't get into it--have to take his word it is finished. Are attics 'rentable'? Do they need an exit, fire escape? There is one alcove window in the attic--does it need a full window?
Got this off of a website called cost helper. Cost of Attic Remodeling - Get Prices and Estimates - CostHelper.com
A simple conversion of an attic into one large open living space, such as a playroom or workroom, still requires reinforcing the floor joists as well as adding insulation, ventilation, electrical wiring, plumbing, finished floors, finished ceilings, finished walls and meeting building codes for items such as an additional fire exit through a window or other opening. This can average $10,000 -$25,000 or more, depending on the existing attic space, the challenges faced and the amenities desired.
I bet it's the floor joists or the exit. Still--according the the site, reinforcing joists doesn't cost that much. And presumably--part of this is done.
this is all speculation, of course. Haven't made an offer.
If it were me, I would make sure the owner now is the one who talks to the tenants and not you. That way the onus is on him to either have the tenants move or fix the wall and avoid you the extreme unpleasantness of having to start your new relationship with your tenant on a negative foot.
Frankly it sounds to me like you will be starting your new life as a landlord with way more problems and expenses than you are bargaining for. And how can you make an offer on a duplex when you haven't even seen the one side you hope to rent out?
If it were me, I would make sure the owner now is the one who talks to the tenants and not you. That way the onus is on him to either have the tenants move or fix the wall and avoid you the extreme unpleasantness of having to start your new relationship with your tenant on a negative foot.
Frankly it sounds to me like you will be starting your new life as a landlord with way more problems and expenses than you are bargaining for. And how can you make an offer on a duplex when you haven't even seen the one side you hope to rent out?
Well--I may be a bit of a worry-wart, teasing every conceivable issue on this page and not explaining the good points. I called the municiple building and they say that they have nothing about the attic not being in compliance, ever, going back many years. Hmmm--the seller might have been talking about a private inspection, which is a different ball of wax. I'll have my realtor ask.
I certainly would not buy it unless the tenant's half is Painstakingly inspected. The seller asked me to not disturb the tenants unless I am very very serious, and that certainly resonates with me. I am trying to do my homework before I would put them through that.
In the meantime, I ordered some books on Landlord issues. I am just trying to see, ask and learn before I jump (or not).
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