I’m currently living in a duplex with the other side empty and undergoing renovations. The current landlord is planning to sell the property soon.
As a prospective new owner, how likely are you to keep current tenants if they have been endorsed as good renters by the current owners?
I know the other side will likely still need some repairs and updates, so I’m hoping most prospective landlords would be glad to have one side already occupied by a good tenant. Just wanted to see how a landlord would feel about it.
I’m currently living in a duplex with the other side empty and undergoing renovations. The current landlord is planning to sell the property soon.
As a prospective new owner, how likely are you to keep current tenants if they have been endorsed as good renters by the current owners?
I know the other side will likely still need some repairs and updates, so I’m hoping most prospective landlords would be glad to have one side already occupied by a good tenant. Just wanted to see how a landlord would feel about it.
If you're at or near market rent and a good tenant, I wouldn't worry too much.
If you're way below market I'd anticipate a rent increase.
It depends on the plans I have for the new property. However, your current tenant can work an agreement where the original tenants have the rights to finish the lease they signed
I like it to buy rentals that already have tenants since I step immediately into a situation where I have income. Now you definitely want to find out about the tenants, the lease, in terms of the lease, etc. In addition, it is important to make sure that you get something in writing about the security deposits and put that as part of your contract so when the tenants leave you have their deposit to give them (if they have meet all conditions of the lease). Remember you don't have to keep those tenants in there forever that's why it's important to find out the term of the lease so that at the end of the term you can renew the lease if you like them or remove them if you don't. Another idea is to get an estoppel letter from the tenants stating their current rent payment and the amount they put as deposit to make sure that what they say and what the seller says is the same. An estoppel certificate establishes the current status of the lease terms for a third party.
I’m currently living in a duplex with the other side empty and undergoing renovations. The current landlord is planning to sell the property soon.
As a prospective new owner, how likely are you to keep current tenants if they have been endorsed as good renters by the current owners?
I know the other side will likely still need some repairs and updates, so I’m hoping most prospective landlords would be glad to have one side already occupied by a good tenant. Just wanted to see how a landlord would feel about it.
If you're at or near market rent and a good tenant, I wouldn't worry too much.
If you're way below market I'd anticipate a rent increase.
I’m currently living in a duplex with the other side empty and undergoing renovations. The current landlord is planning to sell the property soon.
As a prospective new owner, how likely are you to keep current tenants if they have been endorsed as good renters by the current owners?
I know the other side will likely still need some repairs and updates, so I’m hoping most prospective landlords would be glad to have one side already occupied by a good tenant. Just wanted to see how a landlord would feel about it.
If you're at or near market rent and a good tenant, I wouldn't worry too much.
If you're way below market I'd anticipate a rent increase.
This. As long as you’re paying near market rent most investors will be happy to not need to find another tenant.
@Audra Blake I’ve had good luck with existing tenants as long as rents were close to market value.
The only property I’ve had a few issues with tenants on is one of the last ones I bought where it was grossly mismanaged and rents were under half market value. I’ve raised them but not to full market value and have received a little pushback. One tenant keeps telling me I’m rich since I raised rents so much and makes unreasonable demands for expensive repairs and another has made some snarky comments about now having to work extra hours.
Depends on my plans. If I keep tenants they will go through my application process with market rents. I'll expect them to abide by the new set of rules.
I like it to buy rentals that already have tenants since I step immediately into a situation where I have income. Now you definitely want to find out about the tenants, the lease, in terms of the lease, etc. In addition, it is important to make sure that you get something in writing about the security deposits and put that as part of your contract so when the tenants leave you have their deposit to give them (if they have meet all conditions of the lease). Remember you don't have to keep those tenants in there forever that's why it's important to find out the term of the lease so that at the end of the term you can renew the lease if you like them or remove them if you don't. Another idea is to get an estoppel letter from the tenants stating their current rent payment and the amount they put as deposit to make sure that what they say and what the seller says is the same. An estoppel certificate establishes the current status of the lease terms for a third party.
You can get an idea about the tenants from the condition of the home. Remember they are going to be worried that they will have to move, so may be defensive. Make sure you get confirmation of rents, payments, deposit, lease, etc. In some areas, if you buy a rental, you have to keep the existing tenants unless you or a family member plan to move into the home (eg BC).
When you acquire tenants through the sale, their lease with the previous owner remains in place - and cannot be altered. You're stuck with the quality (or lack thereof) of that lease. And, the only landlord/tenant issues that my clients have ever encountered has been with 'acquired tenants' (I personally will only acquire under vacant possession). You want to buy the property - not the problems - so if you're considering taking the tenants, have your contract stipulate that you will be given the lease contracts and rent rolls within 3 days of executed contract and retain the right to cancel with return of escrow should the tenants not be acceptable to you. Review those documents and do a quick - yet thorough - online search of the tenants to confirm their employment, court records, more. It's not uncommon for sellers to claim that the tenants are great to avoid having to deal with them. Make sure 'good tenant' means quality - not 'good riddance." Best...