Can I add new rules to inherited tenants? Like no smoking?

Question

Just closed on a quadplex and I've identified several problem with tenants, that I want to address. Can I tell my tenants:

Smoking is not allowed in the house or within a certain distance from entrances(Just like standard rules in offices)

All possessions are to be kept inside your unit. Clear the patios and hallways.

I would also like to know about the people staying in my house, just like when you find tenants yourself. I want to know the things you get on applications:Who is all living in my house

How are they able to pay the rent (income/job info)

Jeff Schemmel · Answer

Hey @Orlando Goodon,

Did you get an estoppel agreement done during your inspection period when you purchased your 4-plex? This and having a copy of the leases before you agreed to purchase are extremely important parts of buying multi-family to avoid confusion like this. From the questions you are asking it sounds to me like you didn't get this, or maybe your realtor did not advise it? In MN it is the case that if you purchase a property with existing tenants in place, you inherit them and the current lease as if you signed it - i'm guessing this is the case for you, although I don't know where you are or the laws there.

That said, what's in your lease; do you have copies? if your lease clearly states "no smoking allowed on the property" then that's pretty cut and dry and you can more easily enforce that. If it doesn't, you really don't have a good way to enforce that, and if it's important you enforce it you need to start getting the tenants on your own lease by non-renewing and/or drafting new leases as of the expiration of the old one. that's the clearest path (from the outside looking in).

The same goes for the rest of the questions you asked. These are all standard inclusions in my lease, and it clearly states all of them and the consequences for breaking the rules. If tenants are not abiding by the lease rules then I issue a written warning according to my lease. When that has been issued and the problem still occurs you could pursue other more extreme measures related to removing them from the property (per your local regulations for eviction/non-renewal/etc) or charging a fee if it's allowed.

Finally, have you read through your local landlord/tenant laws? You can take legal advice from people here (which is never really advisable) but it's best to get it from someone local and pay a real estate attorney for an hour of their time to get all your legal questions answered at once.

Bob Okenwa · Answer

The existing lease runs with the property so you'll want to start there and see what it says regarding the rules you're trying to implement. The lease and tenant application should have the information you're seeking and this should have been sought after during your due diligence period.

Tom Gimer · Answer

What does the lease say about Rules and Regulations? Most smart landlords include a provision such as Tenant agrees for itself and for its subtenants, agents, and invitees to comply with the rules and regulations listed on Exhibit X attached hereto and with all reasonable modifications and additions thereto which Landlord may make from time to time. Language such as this would allow LL to amend said rules, circulate, and then enforce.

Andrew Syrios · Answer

A lease supersedes a sale so no unless what they're doing is actually against the law, which is another matter. But as soon as the lease is up or if it is a month to month lease, you can demand (usually with 30 days notice depending on lease and state laws) they sign a new lease with your terms.

Orlando Goodon · Answer

Great point, I was thinking same thing. Priority is to establish what the leases are and then go from there, but before I do anything, I need legal in place. Anything I say, can and will be used against me in court.

Orlando Goodon · Answer

Really solid response here. Thank you. Good tip on hour with attorney.

I got royally screwed by attorney. He really failed me. It felt like he was just a contract attorney. That is all he really did for me. Review the contract and make sure I was protected based on what it said. However, technically the lack of clear terms in contract about tenants, might be considered a failure in the contract part. I mean the contract is everything on paper, I guess so maybe that part was no good.

I got sidetracked with FHA appraisal process. One lesson I learned is there is TOO much at stake for a major purchase like this and if its done in a tenant friendly area like Newark, Newburgh, Chicago...the risks are amplified. So you need to try to dig in on EVERY part of the process. There was a period of time when things slowed down before closing, 5-10 minutes of research about risks of tenants would have clued me in PRETTY fast. This is how sloppy my lawyer was. If me being new at this, can find out so many risks in less than 10 minutes, he should have.

I will admit, there is a chance I might have missed something, even if I looked...because techincally I did do SOME looking into this stuff. For example, I steered clear of Newark because of various warnings about tenant friendly situations not being good for new and small investors. I was not clear on the why. Just had vaige idea of long evictions. When I did my search now, it was targetted based on what is going on now. Before closing this was not clear to me, so I could have read some general advice which did not include some stuff I needed.I think had to do again, I'd find a local guy in the community who can prove to me they know all the government programs well and had done many challenging evictions.I'd potential advice future buys reading this, to consider hiring a eviction attorney prior to closing, in adition to who is doing your closing. Even if you spend an hour with them. Do NOT depend on your attorney when you have the complexity of tenants and government programs!

John Underwood · Answer

This is just common sense to me. Just send them a letter, text or what ever.

Luther Wilson III · Answer

Yes.  That’s the short answer…  Establish your standards as soon as you can.

You oughta consider doing new leases.   Depending on what you took over, if they’re month to month, when the leases end, etc.

Can I add new rules to inherited tenants? Like no smoking?

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