Took over occupied Duplex, now what?

Question

BP!

After trying, failing, not having enough capital, not being quick enough, etc, I finally have a duplex to house hack.

So after much learning, I can’t seem to find this info...

What do I do with the tenant that’s in the other unit? I’m moving into one unit, but do I go knock on the door with warm cookies and give them a copy of my expectations/how to pay future rent/emergency contact info etc?

Do I mail it instead with a thoughtful letter?

If you have been in this position, PLEASE, what did you do?

Karen F. · Answer

If you're going to live in the unit, you want to be on good terms with that person.  You also want them to notify you if something needs repair.  So I would advise that you go by, knock on the door, introduce yourself as the new owner.  If there was a lease in place, you respect the terms of that lease for the rest of the lease period, and in the appropriate time before it expires, give them your lease, along with a rent increase if indicated.   If there was no lease in place, you give them your lease, ask them to slip it back under your door signed by the next day.  If they refuse to sign it, begin the process to get rid of them.

Thomas S. · Answer

@Dwagne Haskins

"I wish I could give you the exact reasons but maybe someone else can elaborate."

They do it for a number of reasons... They do not have the management skills, confidence  or mind set to actually take ownership of their business. The main reason however is usually because they are afraid of tenants and should probably be hiring a PM to manage for them.

Satha Palani · Answer

@Josh Pryor

I currently live in a 3 family I own with 2  tenants. I am assuming you were not able to get vacant possession at closing due to there already being a lease in place.

Start by reading the lease.  Compare the terms to a lease that you would have used if you got the house vacant. In other words, is there anything in the lease that you would take out or add.

Ask the seller if the tenant has made any requests/ complaints that have not been addressed. One of the tenants I inherited had a long list of issues the first time I met her. Looking back, she was not a bad tenant, she was frustrated by the lack of maintenance by the previous owner and I stepped into a situation with no foreknowledge. The combination ended up souring the relationship.

Never lie to your tenants about who you are . If you start with a lie you will end up telling more lies to cover up the first one. Also, these are not just tenants but your neighbors. They will end up knowing more about you than you think.

Be up front and courteous , I bought the house. We will be neighbors. I want this to be a good relationship. Here are the boundaries. That sort of thing.

Lastly, don’t make things personal. If there is an issue address it directly and dispassionately .

Best of luck

Christina Linn · Answer

I always send a letter prior to closing and ask the seller to, as well.  Once we've closed my first stop is every door in that unit to introduce myself in person and discuss any concerns.  This way, the tenant will be expecting changes - just showing up can be shocking and will likely put the tenant on the defensive, especially if they're older than you.  Good luck

Dennis M. · Answer

You should send a letter or hand deliver it . It should state you will be the new landlord and the current lease or leases will be honored and upheld . It should state you will be living there and managing the property as well  . Do not hide the fact you own the building . Don’t play games pretending to be somebody your not . You should avoid hanging out with them or being their friend at all costs . These are your employees not buddies . Be professional use forms and notices for everything and keep firm . This is business and keep in mind many new investors fail trying to be the nice guy . Nice guys finish last

Pamela Morrison · Answer

@Josh Pryor Yes I was looking for a welcome letter. We close on a single family on Thursday and wanted to send some sort of letter because rent is due on the fourth from their previous lease terms. I did search the forums and found some nice examples and typed one up last night.

Pamela Morrison · Answer

I was just looking for a similar answer for a similar situation!

Josh Pryor · Answer

@Pamela Morrison

Does that help you too?

Any specific questions we can help with?

Josh Pryor · Answer

@Satha Palani

That helps! I appreciate it. I know some will tell tenants that they are the manager and not the owner simply so it doesn’t seem like they are the “bad guy” and that some else says no psychology. I however, am a general manager at a store of 130 people. I’m used to saying no and taking all the blame when needed. I like to be honest. My approach will be straightforward and honest. Taking the old lease and comparing it with what I would require is a good tip. I think that’s what I was looking for.

Much appreciated!

Chi Kim · Answer

@Dwagne Haskins

I heard that if you reveal that your the owner than it results with 10x more problems and complaints because your just one door away.

Took over occupied Duplex, now what?

Most Popular Reply