HELP, closing on Duplex in 45 days need advice on current tenants

[Brett Fine]

We are closing on our first duplex Feb 27th. Here is the situation.

Both sides rented. kind of

side one has a lease in place until August 17, tenant has been there for 5 years. Rent has never been raised. currently paying 825.

side two, the daughter of the tenant of side one. No lease in place but just a one page signed document saying she can rent it month to month.No lease to speak of. Paying 975 a month.

A couple issues we are going to have to deal with and I want to deal with it tactfully and not immediately piss anyone off, I know, who cares right, but I want to get off to the right start with tenants as I would like to keep them if possible.

Current owner never took an application on either side as he inherited the tenants when he bought it 4 years ago.

What is the path of action I should take. Get an application from both tenants? Have side two sign a formal lease? Can I offer side one the option to get out of her lease if I have her sign a new lease?

Any Help is appreciated.

[Michael Gansberg]

Hi @Brett Fine - congratulations on your upcoming closing. Not having applications from current tenants is the norm, rather than the exception. Since applications are used to screen tenants, I'd have to say that that ship has sailed. If you didn't like what was on the application, what would do?

Here's my recommendation. Make sure you have all of their contact info, and vice-versa(or your management's info.) Collect rent, grow your business, ignore the missing applications, and if they stop paying rent- you know what to do!