Below Market Lease Expirations

[Victor Trejo]

Amateur questions here 👋

I recently purchased my first 4 unit property. The tenants leases are all expired and all of their rents are below market. One is at 850-should be at 1100, another is at 750-should be at 1100 and another is at 875-should be at 950. I read I have to give tenants 30 days notice to decide whether or not they would like to resign for another year..

Questions being, should I write up temporary month to month leases at their current rates until they decide, just so we have something legally binding us? Or do their current expired leases roll into month to month leases with me, by default, since im the new owner? Even though those leases are in the previous owners name..? I'm leaning towards this route but feel I may be throwing too much at them by making them sign 2 contracts 1 month apart, if they decide to resign. Is there a more streamlined approach?

Would it be best just to write up the new contracts at the new rates and stipulate in the additional comments section that they have until x date(30 days) to decide or need to move out by x date(60 days), those 90 days being at their current rates.

Do I have to give them the full 30/60 days in this scenario?

So many questions I feel I should know the answer to 😅

Thanks for your input,

Victor Trejo - Chicago