General Landlording & Rental Properties

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Eric Sebast
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New landlord question about process for keeping existing tennants

Eric Sebast
Posted Jun 8 2022, 13:14

Under contract on our first property a duplex (traditional financing, past attorney approval, just did inspections today). It has some small items that need repairing, but it is otherwise ready to go.

We decided to keep the existing tenants after meeting one of them when we walked through it before offering on it, and met the second tenant today doing the inspection. The rents are a little bellow market value, but not crazy, and it cashflows well at about $200 per unit (including an expected managment fee). One of the tenants is on a month to month (has been there 4 years), the second tenant is just about 2 years and is on a annual lease that is up in August.

We are going to managing the property ourselves for the next 6 months or so just so we get a feel for how that goes, before flipping it over to a management company (haven't started looking for one or vetting any yet). Planning on using RentRedi for all payments and interactions (not 100% yet, still looking at them all).

So my questions are:

When should we introduce ourselves to the tenants?

For the month to month tenant, can we just move her to our lease, either MTM or an annual, and how would we present wanting her to move to a annual lease instead of a MTM?

The MTM tenant is far below market value, she's at $700 per month, in what should be at least $800 or $850. Do we leave it because it already has good cashflow, or how do we approach changing the rent with her? Would you just keep it cause she's always paid on time, go up gradually, or jump it to market or?

Upstate New York, New York

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