Inherited Tenants for new Rental

[Web A.]

Hey BP. I’m considering purchasing a duplex that currently has tenants that recently signed a 1Year lease ( Ending in 1/2021). The current tenants are paying $400 below market value. I’ve never inherited tenants before. Am I obligated to honor that lease and keep them as tenants for the next 11 months.

Would I be able to change the terms of the current lease? Am i able to have them sign a new lease with myself with new rent prices? Is it customary to request background info, credit checks, past evictions, etc of the tenants before I buy this property.

What are your thoughts BP? 💭

[Jill F.]

Originally posted by @Web A.:

@Jill F.

Great advice. What would be an example of them breaking the lease which would prompt them to sign my new lease?

Any breach of the lease will do, pets in no pet unit, excessive noise they don't remedy, but usually it's late payments, in Ohio we are not required to accept late rent (unless we've made a habit of doing so in the past), so you can tell them you'll only agree accept a late payment, if they sign a new lease with you. But if they won't sign up, your only option is to proceed with an eviction. Since some states will require you to accept a late payment, I don't know if you can, in those states, require a lease modification as a condition of accepting the payment.