Inheriting old tenants but using my leases QUESTIONS
Hello Biggerpockets Peeps!
So I am purchasing an 8 Unit property. Its fully occupied but with really low rent. The current leases are a joke and are all over the road map, couple month to month, some on 6 months and others on two years. One of the apartments is a TOTAL gut job, no big deal we are general contractors and can handle the work. Here is my problem ...
In this state, all units have to be safe and habitable. GOT IT. They need minor things, and the tenants have complained like new exterior doors, interior doors, new bathroom vanity etc. Nothing that they want is NEEDED for the habitability of the apartments. I have no problem doing the repairs and sprucing up the apartments. BUT I don't want to do any of it unless MY leases are in place because these ones... well frankly suck and some don't even have the tenants names on them. There is nothing in there about pets, which they all have, and there is nothing in there about smoking in the units. It's a page and half long, double spaced with NO DETAIL.
In this state a new landlord is required to honor the terms of the current lease, like the length. I have no intention of increasing rent until I can really get in them and remodel them but uniformly all my units require a pet fee, pet insurance rider on their renters insurance and an absolutely ZERO tolerance for smoking in the units.
Would I be permitted to withhold minor repairs (not MAJOR ones) unless they are willing to sign my leases?
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- Property Manager
- Royal Oak, MI
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@KC Conti We also do what @Adam Bartomeo does.
We break all maintenance/repair issues into 5 categories:
1) Health & Safety - must be done
2) Government Required (city inspections & S8) - must be done
3) Property Preservation - recommended, but up to owner
4) Marketing Impact or Tenant Retention - up to owner
5) Miscellaneous - whatever doesn't fit above
Anything that doesn't have to be done can be LEGALLY negotiated with tenants in exchange for changing current lease terms.
- Drew Sygit
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- 248-209-6824