Bogus rent number?

[Lisa Oliver]

I just bought a 4-plex. It's coming time to pay first rent with me as the new landlord. One of the tenants signed a new lease with the previous owner for Jan 1, 2023 - Dec 31, 2023 for 1,295. He's telling me he was paying the previous landlord $1,100 in cash for the last few years and that if I am going to charge $1,295 he will pay $1,100 this month and leave and I can keep his security deposit of $1,200. 

I'm not sure what to do. I am paying all of his utilities and this place at $1,295 is priced at market.

[Tim Miller]

Congrats on the new purchase! Do not argue with any tenant, just simply state that the lease agreement you signed, clearly states $1,295 a month. Advise the tenant that you except this and if its not paid, you'll have to file for eviction. Remember to always keep your cool, because the tenant is going to kick, scream, cry & jump up and down. Just stick to the facts and keep repeating, the lease "YOU" signed states $1,295 a month.

I would also double check your local laws to make sure that accepting a partial payment isn't going to hold you up with eviction. If it does, DO NOT accept any money unless it's the whole amount.

My 2nd piece of advise, is to do everything you can to get rid of this tenant and find a new one. You never know, you could have 4 new tenants by July.

3rd, find an online payment software and force all your tenants to use it. This way you can control how you receive payments. Whole or partial and there is no cash handling. Good Luck