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Brandon Shreffler
  • Rental Property Investor
  • Owasso, OK
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Buying a rental house with tenants

Brandon Shreffler
  • Rental Property Investor
  • Owasso, OK
Posted

I am in the process of buying a house that are friends of the current owners.  They are on a month to month written lease with no deposit.

The current owners said they have been good tenants with on time payments.  They are currently getting a deal from the owners with a $774 month rental payment.  I am already planning to increase it to $850 after the first of the year.  What do I do about the deposit?

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Originally posted by @Brandon Shreffler:

They are currently on a month-to-month lease so I assume I can make them sign a new one or move out.  The security deposit will be an interesting conversation.

You are about to make a mistake. There shouldn't be a conversation. There should be a written notice with your instructions and the Tenant either complies or moves out.

that's just a simple example. The point is, you need to take control of the situation. Be kind, be honest, be fair, but be a business!

  • Nathan Gesner
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