First time landlord. Just signed contract for triplex.

[Josh Michel]

I'm a first time landlord and I just went to contract on a triplex yesterday.  I've been following the forums and podcasts for years and am finally taking action.  I however now have a boatload of questions.

1.  The sellers recently inherited the property and are just looking to turn it into cash.  The original owner did everything month to month with no leases.  NOW there are leases in place, they were signed to make the property marketable.  However, the leases don't mention security deposits.  I'm thinking I'm SOL on getting them, which is concerning, however the leases themselves don't mention them so I think I should be in the clear?  Is that accurate?

2.  When we close it will be around the 15th of the month.  The seller should provide the second half of the months rents correct?

3.  I believe the rents are under market.  However all 3 of the units have the same lease end date, what strategy do you think would be best for increasing them?  I'm worried about singling out one unit for an increase as they might talk to the other tenants, but I also don't want to end up in a situation where I'm filling multiple units at once.  These seem to be long term tenants.  They've painted the walls etc. (which also concerns me regarding the security deposits).

4. What are the biggest mistakes I'm likely to make and how should I avoid them?  What's the biggest learning curve with being a landlord?  What can I do to ease the transition?  I'll be self managing.

[Kelly N.]

@Josh Michel- Congrats!  

1.  I doubt they have security deposits if it isn't in the lease, but ask about it at closing, or beforehand if possible.  You *might* be able to get them to make a concession in the price for the lack of deposits, but if you got a good deal don't push it too much.

2.  The prorated rent should be deducted from your closing costs.

3.  I would opt to increase rents slowly, but they are likely expecting an increase anyhow since the property has been for sale.  They may even be expecting to move or be kicked out.  Figure out if you want them as tenants, and go from there.  Give them more than the minimum amount of notice for rent increases or nonrenewal of their lease.  Improve the property as you can to help justify the rent increase (I'm talking common areas, yard clean up, etc not necessarily work in the units since this is difficult with people living there).

4.  Ask the sellers for any other info they have on the tenants- contact info, applications, background check results if they were ever done, employment info, how long have they been in the property, etc.   

I find that inherited tenants' biggest fears seem to be that you will raise the rent a lot or kick them out, so do what you can to be fair but firm.  I ask the inherited tenants to fill out an application so that I have all their info, and I run a background check myself at my own expense- it isn't their fault it wasn't done by the previous landlord but I also want to know who I have in my units.