Move In House Hack w/ Existing Tenant - Advice For First Talk

[Michael S.]

Hi,

I will be closing on a duplex in NJ where I will live in one unit and the tenant will live in the other. The tenant is currently on an expired lease (going month to month), so I am looking to determine the appropriate steps to be prepared for our first official meeting on Friday (we've met during the inspection and he has been cordial). I'm interested in any advice for the first meeting.

* First meeting general advice -- my plan is to knock on his door to re-introduce myself. I'd then collect a copy of his keys and indicate my interest in signing him up for a full-year lease. Ideally, I'd work with him to determine an appropriate rent price then while asking about any parts of his unit that need to be fixed and any concerns he has with the house I need to be aware of. Am I approaching this correctly? He has been in the unit for 6 years, so has the potential to be a long-term tenant.

* Lease -- any advice on how to put together a lease in the state of New Jersey? Should I work with an attorney or a real estate agent? What is the general cost?

* Property Management -- I'm thinking of buying either PSEG WorryFree or a Home Warranty. I would then give this number to the tenant for any issues so they could reach out directly. Any concerns?

* Other Advice -- anything else I need to consider? I've worked with property managers for all of my other houses, but this will be a new dynamic where I self manage and live in a duplex with the tenant. 

Thanks!

Mike

[Thomas S.]

Absolutely keep this tenant on M2M. As a landlord it is to your advantage to have all tenants on M2M.   You never work with a tenant to "determine appropriate rent". Do not involve the tenant in making business decisions. Determine what your exact market rent is for your area and tell him that is what his rent will be. You then send proper notice to that effect. Ask him about immediate repairs that need to be completed. Do not open the door to him asking for any upgrades.

You absolutely must learn your state landlord tenant regulations before you have any direct dealings with the tenant other than to introduce yourself.