Multifamily or Duplex: Month to month tenants?

Question

I'm just getting into investing slowly and learning about multi-family and renting. Let's say I've landed a duplex property and it has month to month tenants on both sides. What would be the next strategy to move the current tenants out or have them sign a longer lease?

Thanks in advance for any responses!

Jaysen Medhurst · Answer

It all depends, @Pete Resendez. Are they at market rent? Have they given the current owners any trouble? While TX is pretty land lord friendly, many states are not. I know owners that prefer to keep tenants on month-to-month since they can terminate more quickly than they can evict for non payment.

If they're at market and have been good tenants, why rock the boat? Maybe push for a year lease, but I wouldn't consider it critical. One thing you do want to be sure of is they actually have a lease, even if it's month-to-month.

Christen G. · Answer

Welcome! I'd suggest digging into a couple books on how to be a landlord. @Brandon Turner has written some great ones and you can get the 'Landlording 101' basics in a few days/hours time.

That being said, your first steps include can/will include: introducing yourself as the (new) property owner, letting them know how they will pay rent moving forward, getting into the units/scheduling a walk-through and getting photos (if you don't have a signed, move-in report), and deciding if you'd like to get them on a new lease, raise the rent or have them move-out for any renovations or upgrades you need to make.

As to your strategy...that's up to you and what you'd like to do with the building. Feel free to DM me, I've got 8 units and started 3 years ago - I just passed my places off to a PM, but I am happy to help where I can. Best of luck!