Opinions Needed: Inheriting Tenants

[Tommy Nguyen]

Hello BiggerPockets community,

Background: I am closing on a duplex soon. During the inspection, I met all the tenants. At first glance, they seem nice and reasonable. I will rehab the property and accommodate to the tenant's needs. All the tenants' leases are month-to-month, and rents are below market value. The plan is to increase rents after rehab. Also, I will manage the property myself. 

I am not against inheriting tenants; however, I do request the BP community's opinion on the subject.

Questions:

(1) If you were in this similar situation, how would you notify the tenants of the upcoming news (increased rent)?

(2) If you inherited tenants from the previous landlord, how was your experience (both positive and negative)? Second, what were your procedures before inheriting them?

(3) If you choose not to inherit, how do you decrease the vacancy period?

All the best,

Tommy Nguyen

[Nathan Gesner]

Quote from @Tommy Nguyen:

This is asked many times every week. Use the magnifying glass above to search for "inherit tenants" or "existing tenants" and you'll find a lot of discussion.

You have to rehab and the Tenants are below market. You have no idea if they were screened properly and you may not have a strong sense of how well they've performed. They may also be under a poorly written contract.

The short answer is that your best option is to move them out, renovate the unit, and then place your own tenants at market rate under your terms.