new lease for existing tenant?
Hi everyone,
I am looking into buying my first multi-family rental property. Currently, there is a family occupying the upstairs unit. The current owner leases (month to month) the upstairs apt. to a family who has been there for two years. He said he chooses not to have them renew their yearly lease (and just have them pay/live month to month) because they have no intention of leaving, pay their rent on time every month (sometimes needing an occasional reminder), have family in the area, and he wants them to be at liberty to leave whenever they please (giving him 30 days notice and vice versa). Whether or not I end up purchasing this property, I'm just curious about feelings from current land lords on this subject matter. Would it be in my best interest to have them sign a new lease? Should I run my own credit/background checks?
I would like to make the transition as smooth as possible (for both of us) while looking out for my best interests. As long as they are good tenants, them staying is ideal for me. Just wondering if I should follow the current owner's management style.
Thanks for your input,
Julia