Old Tenants New Property Owner

[Jason Herbert]

I am closing on 2- 4 unit buildings at the beginning of next month. The existing owner has been nonexistent for the better part of the a year at the properties. We are planning on starting capital improvements right away and should be able to turn the properties around rather quickly. The 8 units are currently 100% occupied and are all on month to month leases. We will need to have all the tenants enter into a new 1-year lease with us and we will need to increase rents a minimum of $25 per unit per month from the start, rents are currently under market rents. My question is what is the best way to be respectful of the tenants, many of which are long term tenants, but also let them know that they will have to sign a 1-year lease and that their rents are increasing as of the first? I want to be respectful of them however they need to know that this is nonnegotiable.

[Deanna McCormick]

Basically your required to give them a 30 day plus notice prior to the 1st of the month that the increase in rent will be effective the following month So if you give notice May 19th.. balance of may and full month of June is notice period and rent rate will start July 1st.

You should download the Landlord tenant laws for your state and get familiar with that

Along with notice of rent increase you should include new lease terms and Personally I'd keep them all on month to month you have more control and if someone isn't what they should be your only stuck with them for a short period to give non-renewal notice to rather than a entire year.

You will build a better relationship with your tenants this way.

If you can afford 8 empty units then do what you want, but I'd rather weed out the ones I choose, rehab freshen up their unit and rerent to new tenant a unit at a time than all at once. 

You can not give any notice prior to ownership of building, and you should get copies of all leases and security deposits on record for each tenant.