Application for in-place Tenants?

3 Replies

Hello BPers!

I recently acquired a triplex with tenants in place.  All of the tenants have lived there for 3+ years and none of them has a written lease.  I want to enter a lease with them, but I'd also like to ask them to fill out an application form so I have this information too.  Can I ask the tenants to fill out an application if they are already living in the property?

Thank you!

You can.  But bear in mind you are are obligated to the current leases if you close with the tenants in place.

Estopel letters are your friend for inherited tenants.  If you are looking for more information, request it of the seller.  If they balk, it might be a good sign to get the place vacant.  

I'd also ask to see proof of rents paid.  You want to make sure any delinquent tenant is out of the building BEFORE you close.  Make it the seller's problem to get rid of them. 

@Aaron Montague

 I'm interpreting @Kimberly Ashkenazi 's post as she has already closed. But I agree with you pre-closing...estoppels and proof of payments is key. I don't know what the law is in MD, but in Virginia, the Landlord Tenant Act states that the leases are month to month in the absence of a written agreement. I would interpret that as an opportunity to have each tenant apply for a new one-year lease prior to the end of their month to month lease.

If the tenants have been there that long, and have been paying, doesn't sound like you will have much of an issue.

@Brad M.

Yup, I missed the "acquired" word in the first sentence.

But yes, the standard from everything I've done is that a month to month with the same terms as the original lease shows up when anything that isn't month to month expires.  

I'm also of the opinion that if they are paying, leave them alone.

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