New to Landlording and Perplexed

New to Landlording and Perplexed

OH · Member since 2024 · 8 posts · 13 votes

Ohio, first multifamily. I'm almost 48hrs into landloring with 2 inherited tenants. Im struggling to understand why they wont give general information. They were inherited with no proof of rent's but have been there for a long time. They didn't reply to messages explaining that there is new owner's and with said exchange of information. They are almost refusing to give their work schedules or just a general idea so we can work around to accommodate them. There is some maintenance that needs to be done and i need access to the inside. We were not supplied keys to the property so only the tenants have keys. I know to give adequate notice before entry and would like the tenants to be there at the same time. But should I get copies of the keys or replace all the locks? I don't want them to feel like im invading their space. But things need repaired and replaced. How should I go around this. Any ideas would help thanks!        Also its work they asked for and was something that was a very big complaint when we did a walk through before we bought the property and we are following through with it so i don't understand the resistance.

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Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
1y

@Lexie R., a few thoughts.

1. You are only 48 hours into this. You will find tenants MANY times are not the most communicative or helpful sort. If they managed their lives like you wish they would, most would be owners not renters. Also, there are legit reasons many times for their reticence. I'm sure many find it unpleasant to have people come in even if its to fix things.

I would give them more time and make more attempts to contact them. Tenants can be frustrating to deal with especially with communication and coordination.

2. Being new, I would have recommended that before closing you should have forced the seller to get keys and to turn them over at closing.

3. Difficult tenant situations can be an opportunity. If you were able to identify that during the buying process it can be a way to negotiate a better deal. Obviously we are past that point now.

4. On a practical note, I find dealing with locks and keys as an annoyance. Replacing locks every time a tenant leaves is a pain. So, several years ago I switched to a basic electronic deadbolt paired with a plain doorknob (with no lock). So, the only lock is the deadbolt. No more changing locks, only reprogramming new PINs which takes literal seconds and no tools.

This is what I use. It is a knock-off of a comparable Gatehouse brand lock basically:

https://a.co/d/5ceMVR0

5. If the tenants are completely uncooperative, I would just give them notice that I will be entering to do work and I would have a locksmith get you in and have the locks replaced at that time. The benefit with an electronic lock is that if the tenant isn't present you can simply txt them their new PIN so they can enter when they return.

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  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    1y
    Quote from @Lexie R.:

    Ohio, first multifamily. I'm almost 48hrs into landloring with 2 inherited tenants. Im struggling to understand why they wont give general information. They were inherited with no proof of rent's but have been there for a long time. They didn't reply to messages explaining that there is new owner's and with said exchange of information. They are almost refusing to give their work schedules or just a general idea so we can work around to accommodate them. There is some maintenance that needs to be done and i need access to the inside. We were not supplied keys to the property so only the tenants have keys. I know to give adequate notice before entry and would like the tenants to be there at the same time. But should I get copies of the keys or replace all the locks? I don't want them to feel like im invading their space. But things need repaired and replaced. How should I go around this. Any ideas would help thanks!        Also its work they asked for and was something that was a very big complaint when we did a walk through before we bought the property and we are following through with it so i don't understand the resistance.


     Hey Lexie, at closing, did the seller, your agent, or the listing agent give you the keys? Key exchange is very important because it is YOUR property, not theirs. I would reach out to your agent to ask the listing agent about the keys. The seller had to of had a set of keys they should've given you. Or the previous PM company

    Sam McCormack Realtor
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  • OH · Member since 2024 · 8 posts · 13 votes
    1y

    There was no key's, only the tenants have keys. 

  • Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    1y

    @Lexie R., a few thoughts.

    1. You are only 48 hours into this. You will find tenants MANY times are not the most communicative or helpful sort. If they managed their lives like you wish they would, most would be owners not renters. Also, there are legit reasons many times for their reticence. I'm sure many find it unpleasant to have people come in even if its to fix things.

    I would give them more time and make more attempts to contact them. Tenants can be frustrating to deal with especially with communication and coordination.

    2. Being new, I would have recommended that before closing you should have forced the seller to get keys and to turn them over at closing.

    3. Difficult tenant situations can be an opportunity. If you were able to identify that during the buying process it can be a way to negotiate a better deal. Obviously we are past that point now.

    4. On a practical note, I find dealing with locks and keys as an annoyance. Replacing locks every time a tenant leaves is a pain. So, several years ago I switched to a basic electronic deadbolt paired with a plain doorknob (with no lock). So, the only lock is the deadbolt. No more changing locks, only reprogramming new PINs which takes literal seconds and no tools.

    This is what I use. It is a knock-off of a comparable Gatehouse brand lock basically:

    https://a.co/d/5ceMVR0

    5. If the tenants are completely uncooperative, I would just give them notice that I will be entering to do work and I would have a locksmith get you in and have the locks replaced at that time. The benefit with an electronic lock is that if the tenant isn't present you can simply txt them their new PIN so they can enter when they return.

  • OH · Member since 2024 · 8 posts · 13 votes
    1y

    Thank you for your reply. You hit the nail on the head in your third sentence! I would have never thought of using an electronic door/lock. As of right now we did get some dialogue going. So im hopeful for the situation now. 

  • Gregory SchwartzBusiness Member
    Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
    1y

    Oh the joys of inheriting tenants. The good news is that this is normal. You are excited to implement a plan for this new property, and they are cautious about the new landlord. As mentioned give it time but at the same time make sure they understand the expectation. You as the landlord have legally and morally obligations, but they as the tenants also have specific obligations. These should be spelled out in their lease and or local and state laws. 

    Its a balancing act. Good luck

  • Real Estate Agent · San DIego · Member since 2019 · 177 posts · 185 votes
    1y

    You have the most strength in negotiation BEFORE escrow closes. It's something that you can request as a condition of COE, and a good realtor working on your behalf would have known this.   Unfortunately, you missed this opportunity.  

    You can do things like request updated tenant information, new signed leases that kick in at close of escrow, rekey or get key copies, estoppel agreements (outlining the deposits held by the selling owner),  etc.  

  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    1y
    Quote from @Lexie R.:

    Ohio, first multifamily. I'm almost 48hrs into landloring with 2 inherited tenants. Im struggling to understand why they wont give general information. They were inherited with no proof of rent's but have been there for a long time. They didn't reply to messages explaining that there is new owner's and with said exchange of information. They are almost refusing to give their work schedules or just a general idea so we can work around to accommodate them. There is some maintenance that needs to be done and i need access to the inside. We were not supplied keys to the property so only the tenants have keys. I know to give adequate notice before entry and would like the tenants to be there at the same time. But should I get copies of the keys or replace all the locks? I don't want them to feel like im invading their space. But things need repaired and replaced. How should I go around this. Any ideas would help thanks!        Also its work they asked for and was something that was a very big complaint when we did a walk through before we bought the property and we are following through with it so i don't understand the resistance.


     What neighborhood grade is this? The answer will depend on that

  • Alan AsriantsBusiness Member
    Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
    1y

    Did you buy this home off the market yourself or through the MLS?

    Its strange that you were not given proof of rent while you were under contract. Seems like a red flag if you ask for it. 

    In PA we have a 5 day standard period to review leases and ask for all info regarding tenants. 

    Here are some red flags I see:

    1. they dont share proof of payement

    2. They dont let you enter premesis

    3. The apartment is in very poor condition and there have been outstanding repairs 

    It seems to me like you have non-cooperating tenants. Did you get their security deposits and prorated rents? I wouldn't keep these tenants much longer... Do not renew their lease, and if they dont pay, serve them notice...

    There might be no reason for the resistance besides being incredibly difficult people who will take all your energy from you. 

    Alan Asriants - New Century Real Estate 590 Reviews
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  • Kris HoltPro Member
    Real Estate Agent · Atlanta, GA · Member since 2020 · 15 posts · 18 votes
    1y

    Lexie,

    First of all, congrats on the acquisition! Second, it's always helpful to use an honest, experienced real estate agent or broker when making a purchase like this. Everyone has provided great insight so far, but ultimately your obligations as the landlord and the tenant's obligations are defined in the lease. This is the unwavering legal document that says who has do what, when they have to do it, and how they have to do it. You should never waver yourself from this document. If you or the tenant are not following the terms of the lease, that party is in breach of the lease and need to be put on notice with intention to follow through on the implications of the breach. Usually this means that the tenants have to provide access (within reasonable common notice), have to cooperate in access to make repairs (if they don't they would be liable for any additional damage caused by delay in repair), and subject to paying for a locksmith because you had to change the locks because they wouldn't give keys or provide access. Is it always that simple? maybe not, but you should be firm with the tenants in your expectations as the landlord or the lease means nothing, and you will continue to have a hard time. If you don't have copies of the lease, then that's where the experienced real estate professional comes in handy. These would have been provided in the due diligence period or as part of the deliverables package prior to writing the LOI. Firm up on these tenants and tell them to shape up or they can find another place to live. This is your property now and you have to keep things in order to maximize your long-term potential and value.

  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    We give our new tenants every opportunity to provide keys or entry. After multiple attempts over the course of weeks we will eventually resort to changing the locks. We put a coded lockbox on the door so they can always get in. Once we explain this process to them we RARELY have to resort to this.

  • Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    So I'm not going to go into how you had poor representation during escrow because that already happened.

    As mentioned, you are 48 hours into this. Some tenants are busy.

    When I recently took over a property, my business partner and I (1) called each of them to introduce ourselves, (2) sent a text message and (3) sent a letter. We basically set expectations with follow ups. When you inherit tenants, sometimes they are testing you to see how you are as an owner. This is especially true if the previous owner didn't manage it well.

    My strong recommendation is to go ahead and change all locks and provide keys to them and for yourself. Then I would give ample notice that you are coming in to do the necessary work. They had an opportunity to communicate with you. They are your customer but that doesn't mean they can dictate how you run your business.

  • OH · Member since 2024 · 8 posts · 13 votes
    1y

    Class c property. There was no written lease agreement and rent was $200 below market the tenants have been month to month for 5 plus years. We asked for an estoppel and was looked at like we made the word up. We also had issues with our realtor who eventually did not have time for me and had to have "help". So there were many he said, they said thing. 

  • OH · Member since 2024 · 8 posts · 13 votes
    1y

    Yes off the MLS. We were granted a walk through and was able to talk with the tenants which made the decision to but seem easier i suppose. We did receive deposits at closing as a credit. We planned to do a year lease but raising the rent i think we will keep them month to month for a while just incase we do need to evict.

  • OH · Member since 2024 · 8 posts · 13 votes
    1y

    We plan for the tenants to sign the new lease agreement in December with the updated rent rate. And it will still be under market for a bit while we do maintenance and upgrades. Everything was asked for under our due diligence period. The property seemed solid so we followed through.

  • OH · Member since 2024 · 8 posts · 13 votes
    1y
    Quote from @Rick Albert:

    So I'm not going to go into how you had poor representation during escrow because that already happened.

    As mentioned, you are 48 hours into this. Some tenants are busy.

    When I recently took over a property, my business partner and I (1) called each of them to introduce ourselves, (2) sent a text message and (3) sent a letter. We basically set expectations with follow ups. When you inherit tenants, sometimes they are testing you to see how you are as an owner. This is especially true if the previous owner didn't manage it well.

    My strong recommendation is to go ahead and change all locks and provide keys to them and for yourself. Then I would give ample notice that you are coming in to do the necessary work. They had an opportunity to communicate with you. They are your customer but that doesn't mean they can dictate how you run your business.

    We texted and waited 24hrs then posted a notice on the premises. Within a hour they replied back. So i definitely believe they are testing what they can get away with.  I definitely will be Changing the locks in the future so this doesn't happen again.
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1y
    Quote from @Lexie R.:

    Ohio, first multifamily. I'm almost 48hrs into landloring with 2 inherited tenants. Im struggling to understand why they wont give general information. They were inherited with no proof of rent's but have been there for a long time. They didn't reply to messages explaining that there is new owner's and with said exchange of information. They are almost refusing to give their work schedules or just a general idea so we can work around to accommodate them. There is some maintenance that needs to be done and i need access to the inside. We were not supplied keys to the property so only the tenants have keys. I know to give adequate notice before entry and would like the tenants to be there at the same time. But should I get copies of the keys or replace all the locks? I don't want them to feel like im invading their space. But things need repaired and replaced. How should I go around this. Any ideas would help thanks!        Also its work they asked for and was something that was a very big complaint when we did a walk through before we bought the property and we are following through with it so i don't understand the resistance.


    Hi Lexie, congratulations on your recent closing! I'm going to assume that these inherited tenants don't have a lease in place and are month to month. This gives you more flexibility to make changes. First, I would advice to keep documentation of all your requests to arrange maintenance. It's only been 48 hours so I would extend more patience towards the tenants who may be cautious of the new landlord. Continue to attempt scheduling with them and remind them that it's a response to their complaints. You want to let them know that these repairs are to improve their living conditions. If they remain to be difficult and unresponsive after providing proper notice and communication, then maybe it's time to give them a 30-day notice to terminate their tenancy so you can do the repairs needed for your property. Best of luck!

  • Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    1y
    Quote from @Lexie R.:
    Quote from @Rick Albert:

    So I'm not going to go into how you had poor representation during escrow because that already happened.

    As mentioned, you are 48 hours into this. Some tenants are busy.

    When I recently took over a property, my business partner and I (1) called each of them to introduce ourselves, (2) sent a text message and (3) sent a letter. We basically set expectations with follow ups. When you inherit tenants, sometimes they are testing you to see how you are as an owner. This is especially true if the previous owner didn't manage it well.

    My strong recommendation is to go ahead and change all locks and provide keys to them and for yourself. Then I would give ample notice that you are coming in to do the necessary work. They had an opportunity to communicate with you. They are your customer but that doesn't mean they can dictate how you run your business.

    We texted and waited 24hrs then posted a notice on the premises. Within a hour they replied back. So i definitely believe they are testing what they can get away with.  I definitely will be Changing the locks in the future so this doesn't happen again.

     Why wait on changing the locks? You need copies of the keys, so do it now. It's not like you aren't given them access. 

  • Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    1y

    Provide notice, change the locks, and complete the repairs.  Best to change the locks anyway to eliminate any risk or perception of risk with the prior owners (or prior residents).

  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    1y
    Quote from @Lexie R.:

    There was no key's, only the tenants have keys. 


     I would recommend reaching out to your agent to ask the listing agent to talk to the seller. I have never seen that before and really puts you in a bad spot

    Sam McCormack Realtor
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  • Rental Property Investor · Central U. S. A. · Member since 2013 · 296 posts · 149 votes
    1y

    You failed to perform proper due diligence before closing on the rent house.

    Correct the problem now.  Hire an attorney and have the tenants evicted.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    1y
    Quote from @Lexie R.:

    This is a common mistake.

    You are trying to be nice. Tenants are acting like they own the property. Frustrating. 

    Solution? Stop worrying about hurting their feelings. They are hostile tenants, which means they will probably never be good renters. If they are on month-to-month leases, give them a 30-day Notice of Termination (or whatever your state law requires) and get rid of them. If they refuse to leave, have an attorney ready to start the eviction process on day 31. Don't call them. Don't text them. Don't negotiate with them. You gave them a chance, they blew it, and now it's time to try something new with someone new.

    After they are gone you can deal with repairs, rekeying the property, and placing good renters at market rate.

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  • Member since 2024 · 2 posts · 2 votes
    1y
    Quote from @Lexie R.:

    There was no key's, only the tenants have keys. 

    Do you legal, effective, and signed leases? 
  • Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    1y

    They are testing you. Nathan is absolutely right. The first interactions are critical,  every inch you give, you will never get back. I get it, you are trying to be nice and expect them to respond in kind, but the reality is the nicer you are the more they feel empowered. Inherited tenants feel like they have seniority over you and that gives them rights outside of what your lease or State law requires. Ask me how I know.

    You have to handle this almost like a (good) police officer would: follow the law to the tee and friendly but absolutely unapologetic. Provide notice, change the locks, and complete the repairs. 

  • Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    1y

    Have your agent/attorney request contact/keys. It is very important to also know what is best contact method, usually sellers agent communicate this to your agent. For example some tenants answer texts, some mail, some only calls, etc.

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