For Sale with Tenants:Quirks of buying a rented home

Property with a rent paying tenant is an investors dream, but you may have just stumbled upon your dream home and later find out that its occupied what happens now?

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Being a Realtor you come across many homes that may fit the needs of your clients or need some work but have good potential and at a great price point,you know your clients would like. Sometimes these homes are rented,but did not fall of the rental category,since they weren’t initally rental property,but I will notice in the comments the property is currently leased and sometimes it will be a newly signed lease ending a whole year from time of listing (wow). I am very hesitant to show a client a house I think they will like,but that’s currently rented,unless the client is an investor and of course open to this. Many people are unaware of this,but the lease agreement does stay in place until whatever time has been noted. It can be a lengthy process for eviction and tenants have rights. Usually I come across this when a home has been on the market for a long time and sellers want out.

I normally would not want to deal with this situation unless a client truly loves the property and understands the entire situation and the responsibilities from becoming a home-owner to now also becoming a landlord. Here are some tips when handling these tricky situations, it may be worth if or maybe not you decide.

 

Thinking about buying a home currently occupied by tenants

  • Ask the agent about getting a copy of the lease before making an offer (This is important if you are really very interested in the property, to see the terms,rent amount,security deposit,and any other things the seller has promised or included to do for the tenants, These things you could be responsible for and may have an impact on your decision to purchase the property. There may also be a termination clause in the lease that may be beneficial if you wanting to occupy the property sooner than the lease end.)
  • If you want to move forward with the purchase you and your Realtor should research the tenants credit and payment history.
  • You also want to have your agent write in amendment in your contract that keeps you in constant communication between seller and tenant, so that you are informed with anything that is taken place (such as late payments,rent changes and etc).
  • You should also make sure the security deposit gets transferred to you at the end of saleImage

A great tip from ziprealty is:

If you can stand it, you should meet with the seller and the tenant together before closing. Rent, rent collection methods, the security deposit, date of tenant’s move out, and any changes you want to make to the agreement should be clear to everyone, agreed on. Consider a new lease the tenant signs with you in the seller’s presence.

 

Remember: In real estate everything is negotiable if you are trying to move in right away, maybe you can offer to pay some concessions (offer to pay moving expenses,security deposit for new place) to the tenant for them to leave, but ultimately  the lease usually follows with the sale and tenants have rights also.

It may be the home of your dreams but being responsible for a tenant can be a lot more than the average home buyer is looking for. In the end you may just not be able to part and move forward with the purchase, but it may be worth it to move on to another property. No one can determine how things will work out once you are the new landlord.

Always consult with an attorney for legalities between landlord and tenants. Know your rights and the rights of your tenant.

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11 Places to buy local produce and handmade products in Nashville

 

 

If you are new to Nashville or thinking of moving down here, community is a big part out the South and certainly so in Nashville. With the popularity of moving back to the city, New urbanity dwellers are giving that community feel back to the city with many family and pet oriented festivals and events. One that I enjoy during the growing season are the neighborhood flea and farmers markets.

Davidson County alone now boast 11 neighborhood Farmers Markets. These Farmers markest usually aren’t just all about the food or products,but music,food education classes,and even yoga is taking place at these awesome Farmers Markets. Check out the one nearest where you live or are considering moving to.

picture courtesy of http://www.amquistation.org/

picture courtesy of http://www.amquistation.org/

Davidson County Farmers Markets [via Pick TN]

12 South Farmers Market, 3000 Granny White Pike, Nashville, TN, 37204
Amqui Station Farmers Market, 301 B Madison Street, Madison, TN, 37115 [June-Oct]
East Nashville Farmers Market, 1500 Davidson Street, Nashville, TN, 37206 [May-Oct]
Farmers Market at the Crossings, 5434 Bell Forge Lane, Antioch, TN, 37013 [May-Oct Sat 9-1pm]
Farmin in the Hall, 451 Hogan Road, Nashville, TN, 37220 [May-Oct Thurs 5-8]
Forest Hills Farmers Market, The Forest Hills United Methodist Church, Brentwood, TN, 37215 [May- Oct Sat 8-12pm]
Goodlettsville Farmers Market, 521 Moncrief Ave., Goodlettsville, TN, 37072 [visit site for details or call]
Hip Donelson Community Farmers Market, 2730 Lebanon Rd, Nashville, TN, 37214 [May-Oct Fridays 4-7]
Nashville Farmers’ Market, 900 Rosa L. Parks Boulevard, Nashville, TN, 37208  [Open Everyday]
Richland Park Farmers Market, Richland Park in Nashville, TN, Nashville, TN, [May-Oct]
West End Farmers Market, 4101 Harding Pike, Nashville, TN, 37205 [check website]

Picture courtesy of http://www.agriculture.tn.gov/

Picture courtesy of
http://www.agriculture.tn.gov/

No matter what part of town you are moving to there is surely a place to buy locally grown and organic produce and handmade products. Check out the area flea markets and their respective neighborhoods. Great outing for the family,and fun event for a Nashville New Comer or Nashville Native. Meet new people,eat great food,buy locally,and  see some true Southern Hospitality.

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The Zero Down Home Loan does exsist

One of the biggest Imageroadblocks for home ownership is not having a down payment. Lets just be real here Americans many of them…not all, but many, have financial problems that plagued their past and some get dragged into their futures. With unemployment and minimum wage continuing to be major never ending issues, it can be hard to manage to save 3-5% for a down payment for a home when you have current bills,debts and a family to take care of.

If you are one of the Americans that falls into this category,shouldn’t you be able to buy a home if you would like to???

Yes you should, you work hard, you meet the credit requirements and maybe have worked hard to rebuild your credit history back up, to only find out you need to save up a bit more money to get your foot into the door. Continue reading