Buying an existing rental property - what do do about current

[John Laabs]

I also posted this under the General Real Estate - Renters discussion

Can anyone point me to a forum or other discussion on how the process works when you are buying an exiting property that is already being rented out? So it already has tenants exiting on the property, what happens to them and their lease with the current owner if I were to buy the property? FYI, the idea of me buying the property is to also rent it out, but trying to understand more of how the lease and other things go from current owner to me being the new owner. Any help, direction or advice would be appreciated.

[Account Closed]

You "assume" the lease.  In other words, you inherit it as-is.  You basically bought their contract along with the property.  And now you have to honor it.

The seller should notify them in writing that you bought the place.  Then you can give them written notice of how they should pay the rent to you.

I'd also give them a couple days notice that you will be doing an inspection and asking them if there is any maintenance they need to make you aware of.

I learned to be friendly, but business-like with tenants.  I treated them the way I'd want to be treated, but did not befriend them (learned the hard way).  So, welcome gifts, for instance, are a bad idea in my opinion.  I learned if they start to think of you as a friend, they will ask for favors they normally wouldn't, if things remained business-like.

Good luck to you.