Advice: Newly Purchased Home with Apartment (and tenant) Included
I've recently purchased a home (that I intend to live in), and it includes a one-bedroom apartment above the detached garage. The apartment currently has a tenant. This tenant is a co-worker of the current seller, they do not have a contract, and the tenant has not paid a security deposit. It's simply a verbal agreement between both parties. The seller communicates that the tenant is very dependable and has never missed a rent payment. The tenant would like to continue renting the apartment.
This is the first time my husband and I will be landlords. My husband and I are in the process of writing up a rental agreement. We will definitely be asking for a security deposit. We have met the tenant and confirmed employment.
Any words of wisdom out there? Anything to watch out for?