Hey guys, a friend of mine is looking at buying a house via private sale from a co-workers son. The owner lives out of town and rents the property out to two problem tenants who have threatened to destroy the place if he puts it up for sale or evicts them.

What would be the best thing for the owner to do in this situation?

I imagine it's best for my friend to just not get involved and buy else where, but the owner is someone I graduated high school with and I would like to help if I can (with out spending too much time on it mind you)

Thanks in advance for any advice.

Where is this ?

You cannot evict people just because you sell a house in most provinces. You need another reason, such as threats, non-payment of rent and/or property damage.

Assuming your friend still wants to buy the house, and assuming the seller cannot get vacant possession easily, then I would do one of 4 options

1.1) leave $50,000 in trust with a lawyer to deal with clean-up and/or damage.
1.2) take the house over, and install tough landlording practices.
1.3) fix the house, once they have moved out, or are evicted due to threats, non-payment of rent and/or property damage. (This may take a few months)

or

2.1) recommend to friend to hire an eviction firm and based on past issues of threats, non-payment of rent and/or property damage start eviction proceedings.

2.2) once house is empty, fix it up, at sellers expense, or discount price to the point where your friend can buy it as-is, where-is, to account for the mess.

or

3) do not get involved as it is too messy & risky

or

4) try incentives, such as "leave here by October 15, leave as is and we will pay you $2000"

I agree with Thomas. What would your friend be using this home for? Will they be living there or renting.

This is in the Kootenay's of BC.

From what I understand, the tenants have a history of late payments.

This would be my friends primary residence.

Thanks for the tips Thomas. Just out of curiosity, can the seller not insure it for vandalism by tenants, then the next time he gets a legal opportunity to evict them, he does so and if it gets wrecked in the proses, he gets an insurance funded renovation and then sells? The house is not on the market or officially for sale as the seller does not want to stir things up just yet.

Re damage please talk to an insurance firm. That may be possible. With frequent late payments it is not too difficult to evict but it needs good paper trail and a professional eviction firm with "professional" tenant that might cause violence. Harder to do with sloppy documentation.

Perhaps the easiest is to put a for sale sign up, and then at the first cause of damage evict them immediately. That is far easier than (poorly documented or lost) late rent payments !

ThomasBeyer said:

Re damage please talk to an insurance firm. That may be possible. With frequent late payments it is not too difficult to evict but it needs good paper trail and a professional eviction firm with "professional" tenant that might cause violence. Harder to do with sloppy documentation.

Perhaps the easiest is to put a for sale sign up, and then at the first cause of damage evict them immediately. That is far easier than (poorly documented or lost) late rent payments !

Click to expand...

Thanks Thomas! I will let them know what the options are.

Great posts above.
Another perspective is work with the renters.
It often isn't possible to get them out in the preferred time line.
An agreement to terminate tenancy, perhaps with cash to them, and help sourcing a few nearby options advertised for rent, will motivate many.

housingrental said:

Great posts above.
Another perspective is work with the renters.
It often isn't possible to get them out in the preferred time line.
An agreement to terminate tenancy, perhaps with cash to them, and help sourcing a few nearby options advertised for rent, will motivate many.

Click to expand...

Yup that might work best. Offer $2000 or maybe even $4000 to leave by a certain date in the current (messy, but undestroyed) state. That will save you grief and $s most likely.

housingrental said:

Great posts above.
Another perspective is work with the renters.
It often isn't possible to get them out in the preferred time line.
An agreement to terminate tenancy, perhaps with cash to them, and help sourcing a few nearby options advertised for rent, will motivate many.

Click to expand...

Good idea! Thanks!

I second Thomas
http://www.irvineresidentialliving.com/