Credit Check?
This is my first duplex and their are tenants that just got off a year lease and are month to month now... my plan is to see if theyll do a year lease with a small rent increase...... The tenants have been there for 3 years and Im wondering when using the new lease.... would it be insulting to do another credit check..? or maybe just make copies of their license's ? Im also not sure if your able to get verification of what their total household income is... any thoughts or suggestions?
If you have been the tenants' landlord for a year now, you should already know their payment history. Pointless to run a credit check to verify what you already know firsthand.
I always raise rents annually, whether the tenant is month to month or on annual renewal. I like the annual lease, and all my current tenants are on annual or biannual leases. If a tenant insists on a short term month to month as a holdover, I usually grant it for up to three months along with a rent increase.
You just bought the property with existing tenants? Did you get any rental payment history from previous landlord/owner? Did you get a copy of their leases/rental agreements? Did you get their deposits?
I wouldn't worry about the 'insulting' idea. If you have concerns about continuing to rent to these tenants, I would have them fill out rental applications. Start from scratch. If they are currently on month-to-month you can keep them or eliminate them depending upon what you want.
If they have been good tenants and you just want something to put in your file cabinet, well, have them fill out an application anyway. I wouldn't bother with the credit check if they've been paying their rent unless you're looking for a reason to boot them. But again, if they're on a month-to-month, you don't need a reason.......you only need 30-60 days.
Happy Landlording,
Noel
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A little brain, a lot of perseverance and faith in the theory of it all.[ Edited by noel2 on Date 01/30/2004 ]
thanks for the replies... yes i just closed on the prop and the previous landlord had his year lease end this past december... He was a very lenient landlord and said the tenant was good for the most part but did fall behind from time to time..
I know you need to give 30days notice to raise rents or ask tenants if they dont like your new lease to leave.... is there a common form to give them as a notice to leave the property within the next x days?
Check your landlord-tenant laws. In my investment area of the country, I can give notice of termination at least 30 days prior, but I must give 60 days notice of a rent increase.
My leases have a termination provision that says either party can unilaterally terminate the lease upon 30 days written notice to the other party. All I use is a certified letter with return receipt.