Inherited tenants, no lease

[Kyle Beckwith]

I’m in the due diligence phase of my second rental purchase. It is an off market deal and the seller does not have a lease agreement (the tenant has also confirmed). The current tenants have lived there for 10+ years and are below market rent. I will keep the current tenant if possible and the only raise in rent I would immediately impose is to have them start paying the water and sewer. Can I simply have them sign my lease after I take ownership?

Any insights/advice would be appreciated. 

Please help!

[Marcia Maynard]

@Kyle Beckwith  Good long-term tenants are worth keeping. Starting out without a rent raise and instead having the tenant assume other costs is reasonable. We always try to save tenancies when we buy a tenanted property. We meet with our tenants as soon as we can after closing. We also prepare a letter of introduction and introduce them to our management style. If all parties agree, changes to a verbal or written rental agreement can be made at any time, so offer a reasonable contract. Make it a win-win.  If the property is worth owning, don't make the current owner deliver it empty.... you might lose the chance to buy it!  You probably have a sense that the current tenants of 10+ years are worth keeping. You probably also know that with a good month-to-month rental agreement, you can begin your relationship in a respectful, professional, and friendly manner.... and still bring rents up if necessary over time.  I wish you the best!