Our First Rental - Currently on an Oral Lease

[Corey Reyment]

Hi BP Community! We are really excited to be getting our first rental at the end of the month! That being said, we need some advice on how to handle some things. The current tenants are long term tenants in the bottom (its an upper/lower duplex) and they do all the snow removal and lawn care for the property. The upper unit is currently rented for $650 and the lower is $500 per month. The guy we are buying it from says he is only charging them $500 because they are good tenants and do the lawn care and snow.  

Our questions we have for the BP community - whats the best way to approach the tenants once we purchase the property? Also, we want to refi the property to BRRRR it and are purchasing it all cash but hoping to refi and get our money back out as soon as we can. We met with a bank who said the appraiser will look at the amount we are getting for rent to calculate some of the appraised value. We don't want to be the mean landlords who come in and jack the rent but we also want to get it to market standards and to get our value up for the appraisal. How would you handle them signing a lease and how would you go about getting them up to market rent? Also, do most duplex owners have the tenants do the lawn and snow?

[Account Closed]

Everyone's experience is different I created a property management business to do the rent collecting and other things so it was actually legit. I own the property management business and the property but I introduce myself as the property manager not the owner. I lived in apartments before never crossed my mind to look up the owner and so far no one looked that up with me. But I am the property manager so it wasn't anything wrong about it just didn't come out and say Hi im the owner! Some benefit from being known as the owner but sometimes I can be very nice and kind hearted and its easier to hide behind the being a property manager when asking for late payments, situations that arise, things like such still new to this game. My honest thoughts if your like me who just wants to help everyone out and get caught in every sob story I was going for everything lol couldn't help it