Tenant with expired lease

[Ryan Rypel]

What do you do if you bought a property with a tenant and their lease expires before they renew with the new owner?

[Timmi Ryerson]

Month to month leases can be a good thing.  You have the ability to raise rents with proper notice.  If the tenant is causing problems and attempts to get that person to comply are not successful, having a month to month lease will allow you to give notice to terminate easier that with a long term lease.  That being said, whenever you are buying a property where a tenant is in residence already, you will want to do tenant screening and background checks as you would with any new tenant to be sure that they meet your requirements.  The tenant screening should include a full credit check, criminal background check for felony at the state and federal level, homeland security check and sexual predator check.  If it also verifies identity that is even better.  Do check out their employment history and verify income.  Next be sure to get transfer of the security deposit for this tenant at closing of the property. If the closing happens mid month, you will also be entitled to the pro rated rent for that month.  If there have been notices or document history for the tenant, you should get all of those records.  You will also need the tenant to sign a lease with you either on the day that the purchase closes or within a reasonable amount of time thereafter.  If the tenant has a pet, there is probably a pet deposit or pet fee that has been paid and should be transferred to you at the time of closing.  As Michael said, be polite and professional with the tenant.  They are going to be a source of income for you.  Congratulations on your investment.