Shaine, Congratulations! Now go forward as a " Proud " owner!
Everything you do with tenants has to be measured and fair to
all- Them and YOU.! The main problem you will encounter in
this type of scenario is that the tenants probably are used to
living without the usual structures in place. No tenancy agreements,
deferred maintenance that that will " boggle your mind " etc. and
as a result poor or non-existant collections
Several suggestions as starters -you have lots to do!
1. An official looking letter delivered to each tenant " Notice of
New Owner." Brief with Contact info and your intention to
meet with each promptly! Your letter should stress that No
payment of rent or business should be conducted except as directed
2.Meet each tenant seperately . Communication both ways:
Ask enough questions to get a picture of who each is,history,
expectations,flexibility! Of course a showing of paid rent and
any agreement. You may find that you have " squatters"- not
legal tenants, low rents-or real reasonable people glad to pay
more for better services. Make no promises or commitments
yet. Structure New Agreements to honor existing agreements,
Establish New " Floors" where no agreement exists,develope
your strategy for legal removal of undesirables
3. Once you have a feel for the property and the people
develope rules and procedures for the tenants to follow
from collections to disposal of trash! - Simple- one-or two
pages To order the business end up. You will have
determined who is a tenant candidate and who
is not by now.and what improvements you are able to
4. With " New Order" There will be Timely collection of Rent.
but usually collection problems from those you don't want.
There is usually very limited defenses in most states for
non-payment of rent.! You take it from here! " Add and Drop" !
There's more- but you get the gist "order-up" ! Get your operation
Keep in touch with your attorney and GET INSURANCE ASAP
Both Liability and Fire/Calamity!!!!!
Hope this helps- only one person's perspective. Best for