What do YOU do about leases when acquiring tenant in a purchase?

Question

Hi!

We just closed on our first 4-plex on the 1st. All units are occupied with 2 under year long leases and 2 m-t-m leases.

We want to send out lease renewals to the m-t-m renters to get them on our lease with a few options on lease terms.

Wondering a few things:

-wait and see what type of renters they are for month or so before sending out a renewal offer under our lease?

-do you send a copy of our lease for them to review with the lease renewal letter?

-increase rent a bit? (they are under market value)

Do you prefer year long lease renewals or m-t-m? Pros and Cons of each?

I'm second guessing my thoughts on everything and would love to hear how other handle their lease terms with their renters!

TIA!

John Thedford · Answer

Leases transfer with the properties. You cannot arbitrarily change terms. You can try and renegotiate but if the tenant got a great deal they would not have any incentive to do so. As to M2M--perfect place to be. If you are happy with them and terms, you can leave it the same or sign a lease.

Thomas S. · Answer

Absolutely raise rents to market. You are operating a business.

Provide your own lease, M2M, and have them sign.

M2M is absolutely the best possible lease option t have, simply make them auto renewal at the end of each month. There is no down side to having tenants on M2M when you understand that the term of a tenants lease has zero bering on when they decide to move.

Good tenants have no issue with M2M, bad tenants avoid M2M like the  plague. If you wish to remain in control of your property use M2M leases for all tenants.

Term leases only benefit tenants, M2M benefit landlords.