Closing my first property. One unit occupied

[Shawn D.]

Hello BP, I will be moving into my first property very soon. Closing is the first week of March. This is a two family, one unit is occupied. I will be moving into the vacant unit with my girlfriend and plan to live there for a year or so while doing some repairs. Couple questions 1.). Should I raise the rent/ keep same? 2.) new lease terms? 3.) collect rent same day he currently pays? 4.) let him know I'm the owner or property manager? Thanks please add any information you think will be helpful! Shawn

[Thomas S.]

Since there is no lease in place that means they are M2M. This is good especially since it is a family member. They will not work out as tenants and you will likely need to replace them. To do this I would immediately provide them with your new lease and have their new rent set at market rates or above.

If they decide to stay only have M2M lease they will likely not work out. If they decide to leave give them 2 months so you have time to find your new tenant.

At this point you being the new landlord you make the rules. Now is the time to change anything you need changed to suite your business needs. This will be much easier if you get a new tenant. Always have tenants on M2M leases to maintain control of your property.