How to take over a property with tenants in place?
Rental Property Investor · Mystic, CT · Member since 2019 · 11 posts · 2 votes
How to take over a property with tenants in place?
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y1. Give them an introduction letter with you as the new owner. How do they pay rent, how do they report maintenance, and anything else you need them to know. Keep it short and professional. At the same time, provide them a simple form to fill out with current names and contact info of all occupants because the previous Landlord may not have tracked/provided this information. Finally, I schedule a walk-through inspection within one week of purchase. This is an opportunity to meet the Tenants personally, document the condition of the home so you have a starting point (I use pictures), and see if they have any complaints, questions, or maintenance issues.
2. If they are at market rate and you want to keep them, keep them on a month-to-month to see how they perform as Tenants. If everything looks good after 4-6 months, I would lock them into a one-year under my lease.
3. There are many considerations. How are they maintaining their respective units? Do you have proper security deposits? Did the previous owner screen them and provide you with that information? Are they below market rates and due for an increase? If so, can they handle an increase or should you terminate their lease and start fresh with tenants you've selected? How strong is their current lease? Who's maintaining common areas, lawn, etc? Is there any maintenance issue that requires immediate repair?
My #1 recommendation: buy "Every Landlord's Legal Guide" by NOLO. It's full of practical advice and - more importantly - links you to your state laws.
2. If they are at market rate and you want to keep them, keep them on a month-to-month to see how they perform as Tenants. If everything looks good after 4-6 months, I would lock them into a one-year under my lease.
3. There are many considerations. How are they maintaining their respective units? Do you have proper security deposits? Did the previous owner screen them and provide you with that information? Are they below market rates and due for an increase? If so, can they handle an increase or should you terminate their lease and start fresh with tenants you've selected? How strong is their current lease? Who's maintaining common areas, lawn, etc? Is there any maintenance issue that requires immediate repair?
My #1 recommendation: buy "Every Landlord's Legal Guide" by NOLO. It's full of practical advice and - more importantly - links you to your state laws.
The DIY Landlord Book4.7248 Reviews
4 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes4y1. Give them an introduction letter with you as the new owner. How do they pay rent, how do they report maintenance, and anything else you need them to know. Keep it short and professional. At the same time, provide them a simple form to fill out with current names and contact info of all occupants because the previous Landlord may not have tracked/provided this information. Finally, I schedule a walk-through inspection within one week of purchase. This is an opportunity to meet the Tenants personally, document the condition of the home so you have a starting point (I use pictures), and see if they have any complaints, questions, or maintenance issues.
2. If they are at market rate and you want to keep them, keep them on a month-to-month to see how they perform as Tenants. If everything looks good after 4-6 months, I would lock them into a one-year under my lease.
3. There are many considerations. How are they maintaining their respective units? Do you have proper security deposits? Did the previous owner screen them and provide you with that information? Are they below market rates and due for an increase? If so, can they handle an increase or should you terminate their lease and start fresh with tenants you've selected? How strong is their current lease? Who's maintaining common areas, lawn, etc? Is there any maintenance issue that requires immediate repair?
My #1 recommendation: buy "Every Landlord's Legal Guide" by NOLO. It's full of practical advice and - more importantly - links you to your state laws.The DIY Landlord Book4.7248 Reviews - 4yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
You should have copies of the lease. You need to introduce yourself to them. Let them know who to pay rent to and who to call if there are any problems. Also let them know you have their security deposits.
Are you fine with month to month or do you want them under an annual lease? If the later, then let them know and see if they are willing to sign a lease.
Do an inspection of the properties to note any problems. This will be important when they move out. While you don't know the condition of the home when they moved in, if there is not hole in the door now and there is when they move out, you know they did it.
- Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes4y
"Only what the disclosures stated"? Hopefully the disclosures included the lease, ledgers, application package at the very least. That said.
1. If you are local go and introduce yourself and if they are not home leave a letter in their mailbox or on their door that introduces you and asked them to call you. Letter should include contact info/where to pay/how to contact for maintenance and emergencies etc....Don't make it long and complicated. If you are not local then you need to have your local rep do this or call/email/text the tenants the same info and drop an actual letter in the mail. Making contact is step one. Getting them enrolled in your process is step 2.
2. Whatever you want. As the owner, this is up to you (assuming they want to stay). You can keep them month to month or you can sign a term lease. Pluses and minus to both. Educate yourself and decide what route is best for you.
3. Probably, but don't overwhelm yourself or them. Make contact, get them enrolled into your process is what you need to be focused on.
- Rental Property Investor · Mystic, CT · Member since 2019 · 11 posts · 2 votes4y
Thank you these posts are very helpful. I did give a letter to them when I did the final walkthrough and gave them payment and contact info so on the same page there. I also included a page for them to give me their info and got phone numbers from the agent so it sounds like we are all on the same page there.
The rents are super low in the other two units and I was thinking of moving them out, but because if is so difficult to evict right now I am thinking of giving them a shot. If they are paying maybe just let them stay till the covid fiasco calms down. If they aren't paying I was going to just start the eviction process since I would have nothing to lose at that point.
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