Inheriting out of state tenants

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Inheriting out of state tenants

Vitaliy Zima
Member since 2020 · 30 posts · 25 votes

I am buying my first multi-unit in the state of Indiana (out of state property). I already have handyman and a list of vendors I am working with. 

It's a triplex with existing tenants in all 3 units. I will start doing some rehab immediately after closing in a week. couple questions below:

1. I will be managing property. How do I first introduce myself and what are some important  items to discuss in first call with each tenant?  

2. I plan on raising rents after rehab is done. Rehab should take approximately 1 month. I plan to raise it but still keep it under market rent rate. Do I mention this in writing (via email) after rehab is done or with as much up front notice as possible (in one week post closing - mentioning rents going up in 2-3 months time?)

3. I want to have an overall good relationship with my tenants as that is how I manage all my properties and handle all issues upfront. Any tips are much appreciated as I inherent tenants. 

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    8mo

    I am going to poke a gaping hole in your plan.  Apologies in advance for any hurt feelings.

    How do you plan on doing the rehab on occupied units?  That is typically not an easy thing to do.  Certain companies specialize in that, but not many. If you are rehabbing the kitchen, will you compensate them for the days they cannot use the kitchen.  If you are replacing flooring, will your contractors move furniture?  Most wont for liability reasons. How do you paint the walls if the room is filled with their furniture?  Do you or your contractors have sufficient insurance to cover damages to resident property caused by the work?

    Are all your residents on month-to-month leases?  If not, you can't legally raise their rents after the rehab is done. If they are and you are forcing them to live in a rehab zone and then raise their rents immediately after the work is done, they are going to hate you. I would too. That isn't a nice way to treat your residents.

    You would be far better off doing the rehab on unit turns, after a resident moves out.  That is generally how it is done in the apartment space.

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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    8mo
    Quote from @Vitaliy Zima:

    I am buying my first multi-unit in the state of Indiana (out of state property). I already have handyman and a list of vendors I am working with. 

    It's a triplex with existing tenants in all 3 units. I will start doing some rehab immediately after closing in a week. couple questions below:

    1. I will be managing property. How do I first introduce myself and what are some important  items to discuss in first call with each tenant?  

    2. I plan on raising rents after rehab is done. Rehab should take approximately 1 month. I plan to raise it but still keep it under market rent rate. Do I mention this in writing (via email) after rehab is done or with as much up front notice as possible (in one week post closing - mentioning rents going up in 2-3 months time?)

    3. I want to have an overall good relationship with my tenants as that is how I manage all my properties and handle all issues upfront. Any tips are much appreciated as I inherent tenants. 

    Hey Vitaliy, congrats on your first multi-unit in Indiana—that’s exciting and having your vendors lined up already is huge. For your first tenant calls, I’d keep it simple and friendly: introduce yourself as the new owner, let them know you’re there to maintain the property and keep communication open, ask if they have any immediate concerns or maintenance issues, and give them a heads-up that some rehab work is coming up so they know what to expect. For rent increases, it’s usually best to be transparent but professional: you can mention that once the rehab is done, you’ll be adjusting rents slightly to align with market rates, giving them proper notice per state law, but there’s no need to overcomplicate it—tenants usually appreciate honesty and clear timelines. Overall, showing that you’re approachable, responsive, and fair goes a long way; small gestures like checking in during the rehab, responding quickly to maintenance requests, and being consistent with communication really build trust, which makes managing inherited tenants much smoother. Happy to connect and answer any questions you have!



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