Currently Occupied

3 Replies

My questions maybe a repeat but I am not able to access the search feature right now.

If I purchase a property and it is currently rented out, but not at market rates, do I have to wait until the property comes back up for renewal in order to raise rents?

Also once a new property is purchased would I be able to run history checks on the current tenants and if they do not meet my qualifications, criminal past, credit issues, things like these, I am required to honor the current agreement? 

Again I am new so please excuse my ignorance. 

Thanks

yes @Andrew Emery  in most states if you close on property and the tenants are still there you have to honor the lease 

contact a lawyer for the correct answer for your area

Originally posted by @Andrew Emery :

My questions maybe a repeat but I am not able to access the search feature right now.

If I purchase a property and it is currently rented out, but not at market rates, do I have to wait until the property comes back up for renewal in order to raise rents?

Also once a new property is purchased would I be able to run history checks on the current tenants and if they do not meet my qualifications, criminal past, credit issues, things like these, I am required to honor the current agreement? 

Again I am new so please excuse my ignorance. 

Thanks

Andrew:

In most locations and instances, you are obligated to honour the leases you inherit with the property.   In some jurisdictions you are able to demand "vacant possession" of a property or individual rental unit under certain conditions (i.e. you or an immediate family member are to inhabit the unit, the building is going to be demolished, the building/unit will undergo a substantial renovation which necessitates it being empty, etc).

The answer to your second question will depend upon location.  Here, and I would imagine in most places, you would require the written consent of the tenant to run a credit history or background check on them,.

@Mark Brogan  and @Roy N.  Thank you for the great tips. I will add this to my bases that I am trying to get covered. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here