Rental Property Investor · Baltimore, MD · Member since 2009 · 624 posts · 559 votes
17y
Once again great advice.
I will add a few more things...
More then likely the reason the old owner sold you the property is because they were tired of dealing with tenants... and maybe even these tenants specifically.
And guess what... you just purchased their problem.
You primary goal with any new tenant whether one you chose or one you inherited is to TRAIN them to do things your way.
Here is what I found in almost 100% of the cases where I "inherited" tenants.
They will start the relationship by testing you at every turn. Whether it is late rent, bugs, maintenance issues... you name they it are testing to see what you are made of.
If you don't set the tone... "train" them from the begining you will only be creating a more challenging situation.
So... how did I train them?
Once I owned the property they got a letter indicating the basics of the lease. They will need to be reminded... remember they will test you.
The next thing you need to do is schedule a safe and clean inspection. This gets you into the property on your terms and allows you to set the standard around which you expect them to live in your property.
Once in... in addition to performing the inspection, this is a good time go over the lease and ensure they know what their obligations are.
Also, don't be surprised if the inherited tenants attempt to claim that they had a special deal with the previous owner. Of course they won't have any paperwork... so don't let them get this one over on you.
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
17y
Alex,
If the owner says the tenant is good you have a deal, but you must handle your own due dilligence with this tenant.
Is this a SFH and is a property manager concerned, ask him.
Real Estate Investor · Sacramento, CA · Member since 2008 · 566 posts · 356 votes
17y
Knowing about the tenant before you purchase is important. Is it month-to-month, lease, in writing or not, rent paying history, would this tenant pass your tenant screening (would you rent to them)? If the tenant has a deposit with the current owner, make sure that is passed to you at closing with as a separate check.
If on a lease, know how much time remains.
Interview the tenant. How'd they like their current landlord, how often did things need fixing and was the landlord quick about taking care of things. What kind of things, if any, went wrong. Is the tenant story in line with what the seller is telling you? All part of the DD.
Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
17y
Read the lease, of course. That way you will know what the grounds for eviction are. Very important, also, is the term length of the lease. Tenants can be a pain in the *** even when they adhere to all lease clauses.
Also, how much security deposit have they put down? The more the better for you.
No matter what the current LL tells you about the tenant, it may or may not be true. You will find out the truth in a few months. If they are a good tenant treat them fairly and do everything you can to keep them. If they are a bad tenant treat them fairly and do everything you can to get rid of them.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
17y
You can and should read the lease. You should also get an estopple letter signed by the tenant. This should contain a summary of the terms of the lease. This avoids a situation where the lease says one thing, then tenant claims "yeah, but we had a verbal agreement for a 10 year lease at $50/month."
Be sure you know what the security deposit is AND that you get it credited to you at closing.
Rental Property Investor · Baltimore, MD · Member since 2009 · 624 posts · 559 votes
17y
Once again great advice.
I will add a few more things...
More then likely the reason the old owner sold you the property is because they were tired of dealing with tenants... and maybe even these tenants specifically.
And guess what... you just purchased their problem.
You primary goal with any new tenant whether one you chose or one you inherited is to TRAIN them to do things your way.
Here is what I found in almost 100% of the cases where I "inherited" tenants.
They will start the relationship by testing you at every turn. Whether it is late rent, bugs, maintenance issues... you name they it are testing to see what you are made of.
If you don't set the tone... "train" them from the begining you will only be creating a more challenging situation.
So... how did I train them?
Once I owned the property they got a letter indicating the basics of the lease. They will need to be reminded... remember they will test you.
The next thing you need to do is schedule a safe and clean inspection. This gets you into the property on your terms and allows you to set the standard around which you expect them to live in your property.
Once in... in addition to performing the inspection, this is a good time go over the lease and ensure they know what their obligations are.
Also, don't be surprised if the inherited tenants attempt to claim that they had a special deal with the previous owner. Of course they won't have any paperwork... so don't let them get this one over on you.