New Property with Tenants - Landlord Forum thread 344487

New Property with Tenants by M (WI) on April 19, 2016 @15:04

We are purchasing a duplex that has existing tenants already. What process do you follow in this situation? I'm drafting a letter to the tenants to let them know we are the new owners but wondering what else people usually do. Also, what about raising the rents? They both seem to be about $100 lower than market value but I don't want to piss tenants off...

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Re: New Property with Tenants by Anonymous on April 19, 2016 @16:11	[ Reply ]

What situation? What about raising the rents? How do you know the rent is too low? Why would you buy a duplex with tenants if you have no idea what to do? Being a landlord is more than just owning property!

Re: New Property with Tenants by anon on April 19, 2016 @16:21	[ Reply ]

That all is taken care of by current owner. You are stuck with existing lease. You can't change anything in lease or rent as a new owner with tenants under lease.

Re: New Property with Tenants by M (WI) on April 19, 2016 @16:31	[ Reply ]

Wow. Had no idea I would be attacked for asking how other people handle things. I know the proper way to handle the business side of things I was more so looking for peoples different methods.. The rental agreement is month to month so if I give them proper notice I can raise the rent. Just forget it.

Re: New Property with Tenants by Magic Mike on April 19, 2016 @16:45	[ Reply ]

Trolls abound! I would not worry about it OP. You should send an introductory letter. You need to tell them how to communicate with you, how to pay you, how to make repair requests, etc. If you are going to raise rent, then just give the proper notification. If they move out, they move out. For $100 below market, I would risk it. But that's a business decision you need to consider for yourself.

Re: New Property with Tenants

Re: New Property with Tenants by MrDan (GA) on April 19, 2016 @23:10	[ Reply ]

Congratulations on your purchase. One thing to be aware of is that tenants see a new landlord to impose request for deferred repairs from the previous owner. You might find yourself facing some additional cost for repairs. If you proceed in raising the rent too soon, the tenants may vacate and leave you without income and still facing repairs or maybe worst. Access you property by doing an inspection of the building, both inside and out so you know just what you would be facing. The fact that you believe the rent is $100 under market does not mean that your rental property is up to par with others in your area. There is always a reason why rents are low. Good Luck,

Re: New Property with Tenants by altagracia on April 20, 2016 @06:49	[ Reply ]

Did you get tenant security deposit from previous landlord? I ask you just in case .

Re: New Property with Tenants

Re: New Property with Tenants by Katiekate (New York) on April 20, 2016 @08:47	[ Reply ]

Most of what you need to do is going to happen between you and seller. You must get from seller....a copy of the lease. The full amount of the damage deposit. The full amount of a pet deposit. A complete, signed copy of the move in walk through You need all that to protect yourself from the tenant that leaves months from now with a lot of damage. You need proof that tenant did the damage and the deposit. If seller cannot provide the move in walk thru, you need to do a full inspection NOW and get the estimate of damage repair costs from the seller in closing. You will never recover those costs from the tenant if you cannot prove it wasn't pre-existing. You should not pay for the seller's failure to handle the business aspects before your purchase Do not accept this in escrow...you will play the devil getting sellers attorney to ever release any of the money later. Once the lease is set to expire...give notice that you intend to raise the rent...do it with plenty of time to get a new lease signed.

Re: New Property with Tenants by M (WI) on April 20, 2016 @14:41	[ Reply ]

Thank you Magic Mike, MrDan, and Katie!

Re: New Property with Tenants by MTR (WI) on April 25, 2016 @18:35	[ Reply ]

About 6 months ago I had the same situation. I gave them a letter the first day with our contact information, payment information, and the contact information I had for them. I asked them to verify it, and that is important. The old LLs at our place gave the tenants incorrect information for us, so it's important you let them know this is the official version. We also did a number of needed repairs, and have now started raising rents, but they had a good 4 months to get to know us and that we'll at least get things fixed that need it. I didn't get any resistance with the increases, so if you can hold off a few months, it might be better. I would also let them know right away that you mean business. Contact them right away if there's a late payment, or any other problems (one tenant tried to sneak a cat in. I probably would have let him keep it, but he didn't clean up properly). If you're new to the business, don't let them know.