Buying a home that already has tenants may seem like a shortcut to income, especially in a city like Hartford, where rental demand stays steady. But if you are not prepared, the process can become messy quickly.
A home with tenants comes with more than just a monthly check. It comes with legal obligations, timelines and potential surprises. If you are considering this route, it helps to understand what you are getting into before the keys are even handed over.
Do not let tenants complicate the deal
The closing process is not as simple when a home has active renters. You will need to factor in more than just inspections and financing. Consider this:
- Review the lease: Make sure you get a copy of the current lease agreement. This will tell you how long the tenants can stay, what their rights are and whether they have been paying rent on time.
- Respect their rights: In Connecticut, tenants are often protected even if the property changes hands. You may not be able to move in immediately or raise the rent without prior notice.
- Check local rental rules: Hartford has specific rental codes and requirements. It includes safety standards, registration rules and possible caps on rent increases.
- Know the eviction process: If your goal is to live in the home or bring in new renters, it is essential to understand how long it may take to remove existing tenants legally. The process can take time, even months.
- Ask about security deposits: You might be responsible for returning security deposits later, even if you never collected them. Be sure that’s handled at closing.
Each of these steps can help you avoid common setbacks and make the closing process smoother when tenants are involved. With so many pieces involved, including leases, timelines and tenant protections, it is helpful to have legal representation from start to finish.