Taking Over Property With Tenants
What is the best way to handle taking over pre-existing tenants. Do I have them fill out a new lease with me. Or do I just keep there existing lease. I am guessing that I have to honor the previous owners lease terms until it expires is this right?? Any help would be greatly appreciated.
Scott
Open discussion is always best. Look at what they have in their lease and talk to them about it.
Maybe there are things that you can change that both of you can agree on. Otherwise leave it alone and go on getting that cash flow without any disruptions.
Property is purchased subject to existing leases. You have to honor the terms and conditions of the existing leases.
You can always offer to release the tenants from their current lease if they will sign a new lease with you, but the tenant is not required to do so.
Give them the correct notice and tell them the rent will be going up when their lease is up. They can sign a new lease with you if they want to.
If that doesn't work, tell them to move when their old lease is up. It is my understanding that in most states you do not have to give a reason why you are not renewing. Beware, because in some states you do have to give a reason.
Cordially,
Alice
I agree with all of the above. I look at it as kind of a grandfathering period..If they have pets (I dont allow) they get to keep exsisting pets. If they are paying under what I want to rent it for I let them know right away where rents are going. This way if they dont like it they start looking right away...To me it is the worst part of landlording because you have to live with someone elses standards as far as what they allowed and whom they chose to be a tenant...
Find out local law/code and do what works for you........My last purchase the tenants didnt want me to have a KEY...I simply reminded them that it was now MY property and that I had every right to a key.....needless to say I got the key but it is the little stuff like that which can make it the most frustrating.......
B[ Edited by BMan on Date 03/14/2004 ]
I recently took over a 4-unit building and found a book I was reading to have great advice. It was a Landlording for Dummies type, and listed several examples of items that should be confirmed with the owner before COE, and with the tenants after COE.
Before COE, it recommended getting an inventory from the previous owner showing what tenants are paying for rent, what their security deposit was, what (if any) appliances the tenant owns, as well as getting a full copy of the current lease so you know when it expires and who lives in the unit. After COE, it recommended having the tenants fill out a contact and emergency info form, and also giving the tenants a new agreement showing your landlording policies and practices - ie. when the rent will be picked up, and what you expect from the tenants. These suggestions really made my transition easy.