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new owner don't want to rent

We just acquired an apartment building from my husbands mother. It is a two story building with two apts. We live upstairs and the downstairs has a tenant in it that was there when we took over the building. We took the apt building in the last of May 2008. On June 7th we verbally told the tenant downstairs he had until August 1st to vacate because we are not wanting to rent. We gave him a written notice on July 13th just as a reminder. He seems like he is digging in and dont want to move. We do not have a letter of occupancy to rent the apartment because we are NOT wanting to rent. Any advice?
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I would serve formal notice, certified, retrun receipt requested. If there is no response, you can always go through the court system to have them evicted.
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