First time landlord, renters in place

[Hayden Albert]

Hello BP,

I am set to close on a large duplex in the Charleston, SC area. It is an 8 bedroom 5 bath divided up into a 4 bed 3 bath and 4 bed 2 bath. The person I am purchasing the property from would like to rent from me for a few months until his house is finished being built. Do I charge him a security deposit and treat it as if he were a long term tenant?

Second unit has had the same tenants in there for the last ~20 years or so. I’d like to keep them in there but the place is trashed due to general wear and tear from renters. (Needs new carpets, paint, appliances, and outside junk cleanup.) any advice on walking this thin line of keeping them in the unit while getting them to clean up the place? I don’t want to kick them out in the middle of this pandemic, this helps me and them. I really don’t want to have to foot the bill for repairs right away.

Thanks!

-Hayden

[Matt Leber]

@Hayden Albert definitely get a security deposit on the first unit. As for the 20 year tenants, let them stay if they’re paying. I wouldn’t pour money into cleaning it up until they’re gone, unless it’s severely under market rent. In that case, ride this virus out with the current tenants and then raise it to market. If they stay, keep them and delay the turnover costs. If they move, get the unit cleanup up then.