What if there's current tenant in the property I am considering renting month to month; Im not looking to raise the rent yet but how do I secure deposit/advance? Or those dont apply on month to month rent? Also, how can I try to raise the rent amount,upgrade something? I dont know much about the property yet, but its got potential with my numbers criteria. TY!
The deposit should be transferred to you from the previous owner, make sure that happens when you close the transaction. It's perfectly normal for an owner to collect a deposit on a month-to-month rental, just like a longer term.
Check with IL law, but if the rental is month-to-month and not rent controlled, you can raise the rent any time you please with sufficient notice. Many states require 60 days notice now if the tenant has lived there more than 1 year.
Consulting with a local property manager about the local laws might be a good idea. It would be one hour well invested.
Make sure the security deposit and pro-rated rent are listed on the HUD statement. Also get an estopell that the tenant signs that basically says what the deposit and terms are especially if the landlord "can't find the lease" or it's a verbal agreement.
Great advise guys! Thanks so much! I will definitely check IL laws and consult property manager. If I find out its verbal agreement, is it acceptable to request the seller of the property to secure an agreement with their current tenant? I want to keep the tenant since that gives me cashflow right away and I dont want to come across threatening (strict/unreasonable new owner).
One more thing, I would like to eventually push the tenant for longer term than month to month, how do I make that change appealing to a tenant? Thanks!
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