Tenant occupied when buying a multifamily property

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When you first buy your multifamily property, what do you first do? Upgrade or remodel the property if needed? Raise the rent? Kick out tenants in some units to remodel? What if there are tenants with contract leases?
When buying, you’re buying the leases as well. I try to get a feeling as to the tenants during a walkthrough and try to get info from the present landlord about whether they pay rent on time. Then you can decide who you want to keep and who you want to give your 30-day notice to. Any questionable tenants you can have the prior owner remove before closing... but know the seller may balk at that since it’s work for them.

That depends on your business plan. Notification of new owner is the very first thing and validate the leases and tenants. This should have been done during your lease audit in your due diligence.

If it's a small multifamily property,  personal communication is good to get a feel for the tenants.  If you raise the rents as leases expire then I suggest doing some work to have the tenants realize that you are improving the property.  Then the tenants are more willing to accept the raise. 

I wouldn't kick out tenants to remodel, unless it's a health hazard.  As tenants move out, or as remodeled units become available and convince existing tenants to switch units, execute your remodel plans.

I inherited tenants on my duplex. The first thing I did (after reviewing their lease in its entirety) was to meet them and ask them if they have any maintenance issues they would like fixed. I did a thorough walk thru of their units and told them it was their chance to start over with a clean slate. I fixed a few small things for them, and I also bought them a washer & dryer for their unit. They were very happy with my response as their new landlord. After 6 months of them being very good tenants, I signed them up for a 2 year extension (with a rent increase of course).

Assess the quality of the tenants. Usually not good with inherited tenants. You must respect their leases to term. At that time you raise the rents to full market based on the condition of the units or get rid of the tenants to reno and get a higher rent. Try to keep your reno expense low enough such that the cost is recouped within two years through the higher rents.

Getting rid of tenants to reno at the end of their lease is a two pronged assessment. First if the tenant is not paying on time or is causing problems you get rid of them. Second is based on how much higher rent you can get by renovating. Often this is not worth while except in the worst case scenario and would be avoided. You would simply do a lipstick reno between tenants. A semi major reno (bath, kitchen etc.) must add value to the property or it is a waste of money.

When moving rent to market it is based on the present condition of the unit and therefor does not require you having to throw the tenant a bone. That is a personal decision that has little impact, often negative, on tenants.  

I would have all tenants on M2M leases going forward and I would not ever ask a open ended question like "what would you like". I would know going into the deal all the issues needing attention and do not illicit tenants opinions nor am I interested in their wishes and desires. This is probably the only nice thing about inherited tennats, you do not have a relationship and do not have to care about them. 

@Abimael Rodriguez Asking the new tenants if there’s any maintenance requests or concerns they have is completely insane . They are already going to be on edge and the old landlord is tired of them and they likewise probably are sick of him ..so You enter the picture and they think your loaded now your taking special requests , oh boy get your wallet out !