Buying a property with a tenant in place

[Alex K.]

Can be a problem if it is a bad tenant, otherwise it sounds like a win win situation to me?

Just wondering what others experience has been with this type of scnario, as well as any comments and suggestions you can provide.

[Peter Giardini]

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.

There is probably more... so just ask.