Inheriting tenants-at-will in Massachusetts

[Michael Cutting]

Hello, BP!

I've been doing some diligence on an 8 unit apartment building by obtaining details from the seller's agent and running some analysis. Outside of the numbers, I've got a few details around this potential opportunity that I'm hoping to run by the BP community to see if anyone has any guidance/experience with my specific queries.

The building in question is fully rented. However, the agent says that there are no leases in place - only tenancy at will agreements. Additionally, the seller has no security deposits, and he only has the last months rent for two of the units.

I've reviewed the landlording info on the mass.gov website, but wanted to check with any more experienced Massachusetts investors here on BP:

- Is a new owner allowed to step in and require signed lease agreements if no lease was previously in place in Massachusetts?

- Has anyone had any experience with taking such a step, and any guidance on that front? Are tenants put off by this? Do you advise allowing the tenants to remain on a month-to-month arrangement in order to make sure they are good tenants and the relationship will work?

- Can a new owner ask for a security deposit from existing residents if they didn't have to provide one to a previous landlord?

I'm not particularly enamored with the idea of not having a lease agreement in place, even if its a month-to-month lease, so am wondering how this would play out.

Thanks in advance!

Mike