Buying a park with delinquency

I’m closing on a 6 unit park Wednesday (next to a 40 unit one I purchased from the same seller in June).

She has 2 tenants (all TOH) that haven’t paid July or August, so the pro rated rents are very little.

I don’t want to throw a wrench in the closing over a couple hundred dollars, my question is how to handle these 2 tenants, do you forgive the bad debt or do you give them a 10 day pay or quit notice with eviction being filed at the end?

I will have zero issue filling the lots even if they pulled the homes out (not likely). What would you do?

You are not in a legal position to forgive or give notice.
The rent owed is not owed to you and therefor only the seller has legal right to collect up to the date you take ownership. Once you own the park the tenants must then be delinquent in the rent they owe you, from the day you take ownership, for you to take action to collect or evict.

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Typically the contract is going to stipulate who gets back rent. I that addressed? I would give them non pay notices on what your state dictates. Then depending on the circumstances , you might consider clearing their old balance. Your call , to give them a new start. BUT i just dont like to see old owner having right to collection because then becomes a conflict of interest on if the rent is considered back or current.

Any time I’ve bought a place with delinquency going in, those same people were evicted shortly thereafter. I’ve always been owed pro-rated rent for the month of purchase, whether the owner was paid or not.
I would just plan to start the eviction process ASAP when they fail to pay September rent.

Would you give them a late notice for the pro rated rent, or forgive it & evict if they don’t pay September?

The pro-rated rent for the month should come from the seller at closing (on the HUD), whether the tenant has paid or not. That said, where it’s only a couple hundred bucks, I’d just wait till non-payment in September and forget about the past rent.

westewart is correct, the pro rated rent comes from the seller at closing. September rent will be the test as to whether the tenant will be delinquent or not.

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