closing first property with tenants already in place - now what?

[Jack Johnson]

all the properties I have closed in the past where always vacant - i bought, rented and started with new tenants, etc

I'm closing a duplex tomorrow - with tenants already in place - suggestions on how to make transition set expectations, etc 

best way to make introductions, review lease, ? sign new lease, how to set expectations, when to raise rents - etc ? 

many thanks 

jack

[Thomas S.]

You first need to know what their lease states and what the state regulations allow.

Otherwise treat them exactly as if you were screening applicants to place in a vacant unit. They are not entitled to any special treatment beyond their legal rights. Raise the rents immediately to market providing you are allowed and simply tell them everything you want them to know and how it is going to be. Rip off the band aid lay down the law (rules) and see how it goes. 

There really is nothing special about it but most landlords usually screw it up by not stepping up to their responsibilities immediately upon taking on a new property. For some reason they are afraid of facing inherited tenants or treating them as they would any new tenant. They tend to go in soft, lose potential money on rent and generally allow the tenants to control them because the tenants were in place. This is the reason so many inherited tenants turn out bad.

I prefer the all business all the time approach.