Investor · San Francisco Bay Area · Member since 2021 · 20 posts · 7 votes
I have recently bought a duplex with 1 unit being occupied. Any suggestions on how I inherit the tenant's lease? Since he did not apply for a lease with me, I do not have a background check, SSN, or credit report.
Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes
3y
Do you want to make sure you get a copy of the lease and read it over to make sure there is nothing in there that you don't like (i.e. can rent it for 10 years without rent increases or something crazy like that). You also want to get the security deposit from the seller. Also get an estoppel letter from the tenant. The tenant estoppel should have the start date of the lease, current rent amount, the current deposit amount, all occupants, any pets or pet restrictions, who pays what utilities, etc. I would get the original applications and contact info. I would also give the tenant a letter and let them know there is a new owner or new property manager, tell them where to send or direct deposit their rent each month.
Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes
3y
Do you want to make sure you get a copy of the lease and read it over to make sure there is nothing in there that you don't like (i.e. can rent it for 10 years without rent increases or something crazy like that). You also want to get the security deposit from the seller. Also get an estoppel letter from the tenant. The tenant estoppel should have the start date of the lease, current rent amount, the current deposit amount, all occupants, any pets or pet restrictions, who pays what utilities, etc. I would get the original applications and contact info. I would also give the tenant a letter and let them know there is a new owner or new property manager, tell them where to send or direct deposit their rent each month.
Real Estate Agent · Orem, UT · Member since 2021 · 98 posts · 80 votes
3y
Typically the purchase contract will spell out what your obligations are for keeping the existing tenant. Likely you'll need to honor the existing lease if there is one. If not, then there are also going to be other laws surrounding how long of notice you'll need to give them if you want them to move.
What I would suggest, if you even have the option of replacing them, is just to have them apply as if they weren't living there. Have them fill out an application, run background, etc. Just communicate well with them why you're doing this. If they qualify, it's much better to keep them than to have a turnover. It's also probably best to not charge them any application fees and give them as much notice as possible with all of this.
If you treat your tenants right, they'll usually treat your property right.
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
You will need to honor the existing lease, no changes can be made until the lease has expired. You will need the deposits and a copy of the existing lease.
Do you want to make sure you get a copy of the lease and read it over to make sure there is nothing in there that you don't like (i.e. can rent it for 10 years without rent increases or something crazy like that). You also want to get the security deposit from the seller. Also get an estoppel letter from the tenant. The tenant estoppel should have the start date of the lease, current rent amount, the current deposit amount, all occupants, any pets or pet restrictions, who pays what utilities, etc. I would get the original applications and contact info. I would also give the tenant a letter and let them know there is a new owner or new property manager, tell them where to send or direct deposit their rent each month.
Thank you, Randy! It makes sense. I'm fine with the terms, the only piece I'm concerned about is not having an application and thus the SSN in case something happens down the road.
You will need to honor the existing lease, no changes can be made until the lease has expired. You will need the deposits and a copy of the existing lease.
Hi Eliott, yes I have those and am fine with the terms too. I'm concerned if something happens down the road, I won't have application (SSN and such) - how would I go about it?
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
3y
Aloha,
You just require that they complete a new application "for your records". If their current term ends soon, advise them it will be terminated at that time, and they will need to qualify based on your criteria, and sign a new Rental Agreement under your terms.
Normally we do this immediately upon acquisition, after we have done a walk through inspection, documenting conditions and looking closely for signs of leaks or other issues that have been unreported or unresolved.