Unique leasing agreement
Hey guys! Hope all is well. Looking for some help in a unique situation.
Just closed on a triplex. Seller said they had no lease agreement in place. But said that unit 1 was getting free rent for being the “manager” of the property, collecting rent and doing repairs.
Unit 2 was paying $400 a month
Unit 3 was paying $500 a month
All 3 units paying below market value by a couple hundred dollars.
But unit 1 manager said after paying water and doing repairs each month there was $0 left over. So for 18 months the current owner was making $0 income on this property. Wild..
Anyway Monday I closed. And unit one manager says we have 2 leases in place.
Unit 1 lease - a month to month. No start or end date. And was signed in 2013 for $475 a month. This lease was signed by the owner of the property before the current seller.
Unit 2 - month to month. Signed October 2019 but signed by the manager (family members unit 1 and 2) not by the owner of the property.
Unit 3 - no lease at all. But manager keeps receipts each month.
Trying to figure out what I can do in this situation. Can I create a new lease and charge market value rents or do I have to follow there lease agreement?
This property is in the state of Oregon.
Thanks !