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Put it in writing as an addendum to the purchase and sales agreement. That's what we did. We set it up as a minimum 30 day rental, with damage deposit, etc. Term of lease not to exceed 90 days. We closed in March and took delivery of our house in June.
A few days is normal and customary in order to solve timing problems. However, if they want to remain there any more then a couple of days I would absolutely refuse. Unless, of course, you are interested in becomming an unitentional landlord.
The rent you charge them is based on what your mortgage is. You have to charge them enough to cover them mortgage. Divide it by 31 days. Yes, they many end up leaving crap in your house so when you speak to your attorney make sure that it is specified that any contents left behind will be disosed of by a cleaning company immediately. This bill will be ayed for out of escrow.
Personally i would be very hesitant to let them stay after the closing. I know it is not uncommon, but it can just open a can of worms. I would be afraid of them not leaving, doing damage, or leaving tons of stuff behind. I know there is escrow for that, but it is just a headache the doesn't need to happen. If they can't get their stuff in order by the closing date, they can put their stuff in storage and either stay with relatives or in a motel for a bit. I know a few people that needed to do that.
The rent you charge them is based on what your mortgage is. You have to charge them enough to cover them mortgage. Divide it by 31 days. Yes, they many end up leaving crap in your house so when you speak to your attorney make sure that it is specified that any contents left behind will be disosed of by a cleaning company immediately. This bill will be ayed for out of escrow.
Definitely specify this in writing. We are still waiting for money to be released from escrow to us and we closed in October. It just seems like this will never be resolved. We let them stay a few extra weeks. They left a bunch of crap behind and then they claimed that I said it was ok. I was in the hospital in labor and then having a C-section, so how could I have told them it was ok? I paid someone to haul the stuff away and they argued that they shouldn't pay since I had "changed my mind" about it being ok for them to leave junk behind. They were also supposed to have it professionally cleaned, which didn't happen either. The details were a hassle. If I had it to do all over again, I would make a different choice.
The seller wants some extra time after closing to stay in the house. This seems like trouble waiting to happen. The seller is buying another house but may have trouble closing on their new place, and they have a bunch of college & post college kids who are also staying in the house.
Does anyone have any advice on whether this is something I should agree to?
If I do refuse to this, what can the seller do with their stuff so that they can move out of my house at closing and then move into their new house a few days later? I understand their dilemma and would like to suggest a solution to them. Thank you all for your suggestions!!
Isn't it tempting to try and be the nice guy and do the "right thing?" Watch out, it could easily backfire on you.
These people, your sellers, aren't ready to actually sell their house. You mention in your post they want extra time. How much time exactly? A few days, a few weeks, etc.? In fact, they may still need the house to live in because their other deal may fall through completely and they may regret selling their house to you because they'll have no place to live. And if you've already gone to closing agreeing they can stay in the house for X amount of days, be prepared for them to beg you to become their landlord for another X amount of time. You may be stuck with them for a long time.
The minute you agree to become their landlord (that's exactly what you'll be to them whether it's for 24 hours, 24 days, 24 weeks, etc.) they have to start paying you enough rent to cover your mortgage, utilities, damage, insurance on the house, income taxes on the rent which is income, etc. It could turn into a headache you don't need.
Is it worth it to you to take a chance on these people? It sounds as if there are going to be quite a number of them in there. All goes to wear and tear. You don't want to move into your new house having to fix their damage. And are you so in love with this house that you'd be willing to take on a possible legal disaster, and at worst actually have to evict them through court?
Friends of mine years ago agreed to just this thing. They were trying to be nice. The sellers rented back their house because they no place to go. Everything went along great with them paying rent for around 5 months until my friends had to move in - the wife was 9 mos. pregnant by then and they needed their house to move into with their new baby. Tenants/sellers got mad, didn't want to leave and destroyed their new house. It happens.
After my experience with tenants, I'd run in the other direction.
Oh, and in answer to your question about where the seller can put his stuff, tell them to use a storage facility. This is absolutely not your problem, and don't make it so. You have enough to take care of and think about without taking on the sellers woes.
I agree with TomMoser a few days is customary, anything more I would refuse. For a couple of days you are not a landlord, there is no lease
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