We’re brand newbie about to close a deal on Our first property that was a rental and already have old/previous (long time) tenants on the lease. Is this a good idea ? Any pros and cons? please give us some advice. We’re super duper nervous! Thanks 😊
Rental Property Investor · Butler, PA · Member since 2019 · 38 posts · 15 votes
5y
I only have one duplex so far and I inherited one tenant with that. It has overall been a good experience as they were there for some years and have been pretty grateful with a new owner whom is looking to improve the home and has more modern ways of communication/rent with cozy. If the tenant is paying their rent, is not wrecking the home or other unwanted behaviors why not have them there? Along with this, is depending on their current lease, you will most likely need to keep them there for at least 30 days or longer. Rent adjustment may be a consideration compared to the last lease agreement, but that can be changed over time, a long term tenant is more important than that potential 50 dollar difference per month right now.
Rental Property Investor · Butler, PA · Member since 2019 · 38 posts · 15 votes
5y
I only have one duplex so far and I inherited one tenant with that. It has overall been a good experience as they were there for some years and have been pretty grateful with a new owner whom is looking to improve the home and has more modern ways of communication/rent with cozy. If the tenant is paying their rent, is not wrecking the home or other unwanted behaviors why not have them there? Along with this, is depending on their current lease, you will most likely need to keep them there for at least 30 days or longer. Rent adjustment may be a consideration compared to the last lease agreement, but that can be changed over time, a long term tenant is more important than that potential 50 dollar difference per month right now.
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
5y
@Athita Covington you could have the tenant and seller sign an Estoppel Certificate where they agree that all rents are paid up and security deposit as well. The seller owes you the security deposit and any advance rents at closing. In our area we collect last months rent and a security deposit at lease signing as well as first months rent prior to move in; all as cash or cash equivalent.
You could ask to see the rent roll or deposit journal and you could check 'rentometer.com' to see if rent is at market. Further you should have checked the lease and rental application which would include a photo ID. You should also have inspected any units as part of your process.
Whenever you buy a rental property the leases and tenants are part of the asset.
Investor · Las Vegas, NV · Member since 2019 · 499 posts · 259 votes
5y
@Athita Covington Long-time tenants are awesome as long as they aren't causing trouble. Tenants that have settled into rentals and treat it like their home are the best. But assuming there hasn't been any major upkeep done in years, keep in mind that you may need to shell out some $$$ on neglected repairs once they move out. Hope this helps!