2Unit property with existing tenants - need advice

[Shiva M.]

Hi, I am close to buying a 2 unit property with existing tenants who are on month to month. Any advice from you all on how to approach the tenants regarding lease, payments, etc. Thanks for all the help

Shiva

[Tom Goans]

@Shiva M.,

This should already be incorporated into the purchase agreement. If not, please seek legal advice.

Seeking advice from an attorney in the area where the property is located can be a wise and very economical decision considering the alternative. An attorney will assure you are abiding by the federal and state laws.

• Every state has unique laws.
• Every state has unique legally acceptable legal forms.

The attorney will also provide the best advice and options for your specific needs with a consideration for your future. The results will be legally drawn up agreements for your use.

• Just they way you communicate with a tenant is regulated. Your attorney will help you with this process.

Your attorney may recommend the seller to contact the tenants in writing prior to closing to notify them of what is about to take place, what to expect, where to send future payments, and how to contact you after closing. The attorney may also recommend obtaining in writing from each tenant the balance due, the payment amount, any outside agreements with the seller, and any necessary or pending repairs. Your attorney may recommend you receive these written and executed statements from each tenant prior to closing so that you know from each tenant what they feel and understand is their agreements and the conditions of the property.

To repeat myself, just the way you communicate with tenants is regulated by unique laws in the state where the property is located. You must know and abide by the laws that protect tenants and their established rights by law. Even if you want the tenants to leave, the notice you must provide and the time limit is regulated by law. Your attorney will be a lifesaver and a cheap investment.