Notifying Tenants / Closing on my first property

[Chris Morris]

I will be closing on my first rental property on the 1st of February on an occupied duplex. This is sooner than we expected but the opportunity arrived so I would like to take advantage of the extra income. I have not been in contact with current tenants yet, which I am realizing may have been a mistake. We going to be owner occupying and managing in March and would like to have the tenants in unit A sign a 1 year lease if they a clear application process. The previous owner has told us both tenants have always paid on time, but their current lease has surpassed its end date and they are on month to month basis because no other written agreement was made. My current plan for notifying the tenants is as follow:

1. Call both tenants as soon as I get their contact information from my agent and verbally introduce myself and discuss the situation/their plans.
2. Inform occupants in Unit B that I will honor the pervious owner’s month to month agreement through February and would like a rental application filled out for a 1 year lease to start on March 1st.
3. Inform occupants in Unit A that I will honor the previous owner’s month to month agreement for the month February but unfortunately, we will be occupying the unit on March 1st.
4. Mail occupants in Unit B an introduction letter, lease application and lease agreement for 1 years. Along with 1 month agreement that covers February stating we will continue the terms and agreement by previous owner.
5. Mail occupants in Unit A an introduction letter and a 1 month agreement that covers February. Along with a notice stating we will no longer be continuing their lease and they expected to move by March 1st.
6. After closing on the 1st of February meet with tenants face to face to introduce myself again and collect the agreements and lease application.

Is this a good approach?

Am I missing anything that should be included?

Would having both occupants sign an agreement that states something like: “we are continuing the original agreement with the previous owner for a month to month lease in February. You are notified payments for the month of February are to be sent to….” Cover me through the month?

Thank you!

[Dick Rosen]

Your state laws may be different but generally speaking you don't need anything in writing regards to the MTM tenancy, you are legally obligated to honor that. You can't have any conversations or anything in writing with the tenants until after you close and own the property, at that point I would send a written 30 day notice of your intentions and then follow up by knocking on doors with that same 30 day notice in hand.

I think your plans are fine but if you close on Feb 1 it's to late to give tenants notice for March 1st, you won't be able to implement and changes until April 1st.

This is based on Arizona and Minnesota law, I'm not sure of where you are or what your laws are.