Inheriting Tenants with House

[Robin Sullivan]

Hi - I inherited tenants with 2 multi-families I recently obtained.  I will be meeting them this weekend when I walk through the units with an appraiser.  Is there some sort of checklist of questions/items to review with them that I should have that some of the more experienced landlords on here can share?  I am completely new to being a landlord.  (I did not buy these properties.  They were willed to me, so I am learning as I go.).  I want to start off correctly and not be a pushover landlord from the beginning.  Any advice is appreciated.

Thanks.

-Robin

[Richard F.]

Do you have copies of their current Rental Agreement? If not, you need to verify whether or not THEY have any current, valid, written agreement. (if they do, and you do not, or theirs is different, obtain a copy from them now) In either case, or if they have been on verbal terms prior, you should inform them (based on local law) that any current agreement will be terminated at the earliest lawful date. You will be requiring them to complete a Rental Application so that you can perform a proper background check prior to offering them a new Rental Agreement on your terms and conditions, based on current comparable market rates, if they are approved. Advise them that you need to evaluate the current market, as well as the condition of each unit, to determine fair rent prior to any offer.

In the meantime, ask them (do not provide them the info to simply confirm, find out what they believe to see if it is different from what you already know) to tell you what they are currently paying for rent; what did they pay for Security Deposit; do they own any of the major appliances, or were they supplied by LL; do all appliances operate properly; who is paying for gas, electric, cable, any other; do they have any animals (pets or Assistance Animals); do they have vehicles, make, model, current tags and insurance; where do they park; how do they handle household rubbish; are there any previous maintenance requests that have not been addressed; do they have any maintenance requests at this time; do they have any items stored outside of their unit (additional storage closets or?); did they have ANY other agreements with prior LL? 

Do not create headaches for yourself. Spend the time to understand the application process and get it right. This is the most important decision in long term rental management. Also be sure you have a complete understanding of the total conditions of the property and it's various systems- plumbing, electrical, HVAC, roof, exterior doors and windows, and common areas. Is there obvious deferred maintenance? Will the HVAC or roof need replacement soon? How old are the plumbing systems (be sure to check under each sink, looking for signs of leakage and age), what type, what condition? Is electrical system old and stressed or illegally modified, or is it newer and well sized? Develop a plan to deal with any issues sooner rather than later, as repairs only get more costly, and the damage only gets worse, with time.