Newbie Landlord Tips

[Bianca Rodrigues]

Hi All!

Just closed on a three family with existing tenants on a lease. I have a few questions on how to go about communicating expectations we have as the new landlord.

First, how would you communicate expectations and new policies (like where to send monthly rent), should you do it via a letter, in person, etc?

The existing tenants are in place until October 31, 2023. Do we abide by their existing lease or can we give them a new one? Assuming we just follow their existing lease and then provide a new lease if they choose to renew.

The security deposit was given back to the tenants at closing, again, would we communicate via letter that we’d like to obtain a security deposit until the remainder of their lease?

Any other tips, useful software for landlords or helpful reading material would be greatly appreciated!

Thank you.

[Richard F.]

Aloha,

For any new acquisition, ideally the seller/seller's PM sends or delivers a notice to all tenants with your basic contact info and effective date of new management. Since that ship has sailed, post a notice informing of new management, with your contact info, including where to send rent payment. If you were provided tenant contact info, follow up with a phone call in a day or two, and inform them you need to make a brief inspection of all units within 7 - 10 days, scheduling sooner rather than later.

At that inspection, you should be documenting/photographing general conditions and checking closely for any possible leaks. Once you have completed a walk through, take a few minutes to speak with the tenants, asking them if there are any outstanding maintenance issues; is everything operating properly; who owns the range, refer, washer/dryer; confirm rent amount they are currently paying and which utilities they are paying; ask about what parking spaces are they assigned/using; do they have any pets or assistance animals; and what are their intentions when their current term ends?

You should inform them that if they want to remain, they need to complete and submit a standard application with documentation supporting their financial situation. You will be terminating their existing agreement, and if they meet your requirements and agree with your terms, they will be signing a new agreement during their last month. Further advise that you have not made decisions on a rent increase or other actions, but will be reviewing the market and your findings from this inspection, and will make a decision at a later time.

With regard to the Security Deposit, whoever was handling your side of the sale transaction absolutely failed by not having it transferred to you at closing. You need to inform tenants that SD is due immediately, no exceptions or excuses. Do not accept any "rent" until you have SD in hand. If they try to identify a check as "rent", reject it unless they also provide one for SD. If you do not have it all by their first due date, give them the appropriate notice for your locale to "pay or quit", following through appropriately to evict unless paid in full.

As others have already stated, the terms of the existing agreement remain in effect with the exception of a change in where, and to whom, rent is to be paid.