Buying a property with tenant in place
I am set to close on a property next Friday. It is a duplex and one side is already rented out. I would like to keep the current tenant but he is currently on a month-to-month deal as he has already been there for 5+ years. With a reliable history of on time payments I don't want to scare him away.
How do I go about getting him off the previous rental agreement and onto a new one? I would like to try to switch him to 12 month term and potentially up the rent gradually. Can I reach out to him before I close or should i wait until the property is in my name? Anything else I should be weary of? I don't think I need a new background check given his reliability.
Thanks in advance,
Kevin
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I would like to comment on this one. When I bought my first multi family property, the owner told me from the beginning that I had to evict the tenants, because they weren't good tenants. One tenant would not pay the rent while the 2nd tenant had a bad attitude. So yes I inherited it the problems that came with it. My mayor fear was going to court, and I was able to confront both tenants. At the end, they were out of units. Don't be afraid or feel a little fear when you will be the big boss. Trust me, I was in your shoes. It will be your turn to organize and to set your own rules. On my end, I did spend more than a year to fix the units, and I was able to set my rules and did do a month to month contract with all tenants. Where I am from, apartments are ALWAYS in high demand.